Buy land in heritage suburbs, investors advised

While buy-to-let property development in newly-built developments is slowly starting to pick up again, investors would also do well at the moment to focus on pre-owned homes with large gardens in the heritage suburbs of SA’s major cities.
So says Lew Geffen, chairman of Sotheby’s International Realty in SA, who notes that there are two factors currently working in concert that will significantly boost the value of such properties over the next few years.

4 Bedroom House for sale in Houghton Estate 
“In the first place, the new spatial plans for our large cities lean heavily towards densification and better use of their land and resources to accommodate the rapid urbanization of SA’s population. And this predisposes city councils to the subdivision – albeit within limits – of the very large stands that were previously common in such affluent suburbs as Bryanston, Houghton, Melrose and Westcliff in Johannesburg, and the Southern Suburbs of Cape Town.
“This policy was underscored recently in the Medium-Term Budget Review presented to parliament by Finance Minister Pravin Gordhan, in which it was announced that SA’s eight large metros are to get more than R350m worth of additional funding over the next two years, specifically to address apartheid-legacy spatial planning issues and enable poorer families to live closer to city centres and work opportunities.”
Secondly, he says, steep increases in property rates and maintenance costs over the past few years, as well as security concerns, are prompting many wealthy homeowners to consider modern clusters or high-end sectional title homes as alternatives to the large houses they have traditionally favoured.

4 Bedroom House for sale in Dunkeld West
“Generally they are not, however, willing to compromise on their quality of life, property value or location in their search for more compact, more manageable properties. On the contrary, many appear willing to pay something of a premium to remain in the familiar surroundings of the more affluent suburbs, and therein lies a real opportunity for astute investors and developers.”
In fact, says Geffen, his advice to property investors right now is to buy as much land as they can in the best areas they can afford – almost irrespective of the condition of any buildings on the property – because substantial land parcels in sought after areas are set to become an increasingly rare commodity.
“Meanwhile those fortunate enough to already own large stands in the heritage suburbs areas should seriously investigate the possibility of subdividing them and developing them to accommodate three or four homes – one for their own use, perhaps, and the others for sale or to let.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us