select
|

Investors - how new property laws affect you

South Africa has some interesting new real estate legislation that is destined to make an impact on how investors and property owners operate within the sector.

The City of Cape Town recently promulgated a by-law tailored to regulate the issue of dilapidated and often abandoned buildings that may pose health and safety risks to the public in general.

The by-law prescribes the regular inspection of buildings, the serving of notices and warnings on landowners requesting, amongst other things, the repair or demolition of the dilapidated structure. Notably, the by-law authorises the local authority to take such steps to repair or demolish these structures at the owner's expense.

The by-law is a welcome measure as far as urban regeneration is concerned and other provinces may benefit from enacting similar laws.

Rental Housing Bill

Another important piece of legislation in terms of real estate is the Rental Housing Bill, which proposes to regulate the relationship between landlords, certain historically disadvantaged and/ or indigent tenants and the government.

In particular, Chapter 4 of the bill establishes Rental Housing Tribunals, which are responsible for resolving disputes between landlords and tenants. The tribunals will have the jurisdiction to determine issues relating to overcrowding; unacceptable living conditions; lack of maintenance and exploitive rentals.

This bill, if enacted, may have far-reaching consequences for landlords and tenants alike.
Novel property investment

Pretorius says that in terms of developments in the real estate sector, the Real Estate Investment Trust (REITS) is a novel property investment structure, which makes investment in income-producing real estate more accessible to a more diversified range of investors, including institutional and retail investors.

According to Investopedia, the definition of REIT is, “A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.”
This structure has become increasingly popular in foreign countries and will be a welcome addition to the South African property investment milieu.

In terms of the future of real estate in South Africa, I believe that in the future, the residential long-term lease will become more popular as an alternative to land ownership and will offer an alternative to government in the provision of housing to persons falling in the lower income bracket.



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK