How to choose the right estate for you and your family

Estate living is one of the fastest growing real estate trends in South Africa and, with crime on the rise and lifestyle increasingly a priority for home buyers, the growing demand for a quality lifestyle in a secure environment is unlikely to abate any time soon.

This is according to Grahame Diedericks, who adds that security and lifestyle benefits aside, estate homes are also generally excellent investments that often retain better value than other residential sectors and tend to grow at a steady rate year-on-year.

“The most popular estates, especially, have enjoyed a consistent upward trajectory in the average selling price in recent years, even during the disruption of the pandemic when the economy stalled, house prices dropped and sales slowed right down.”

However, Diedericks says that with so many estate options now available, it’s important that prospective buyers do their homework and consider certain factors to ensure that they make the right investment and lifestyle choice.

Is estate living for you?

This is the first thing to consider because, over and above the security factor, there are some aspects of estate living that some people may find more difficult than others.

Not everyone wants to live according to strict rules and regulations and have elements like architectural design, gardening layout, and guest parking dictated to them. And when you sign on the dotted line, you’re essentially agreeing to abide by the regulations.

Lifestyle requirements

Estates vary considerably, with some offering only heightened security whilst others have all the bells and whistles, including clubhouses, restaurants, golf courses, sports facilities, and some even schools.

Demographics can also vary and retirees and even empty nesters may not want to live in a community largely comprising families with young children.

New vs established

If you’re buying in a new development, everything will be fresh and new with none of the wear-and-tear of a previously lived-in property so no major maintenance, refurbishments or repairs are likely to be necessary for the next three to five years.

A new build can also cost less than a similar existing home as there is no transfer duty (you do pay VAT) and some developers also add extras such as build-in appliances/features or even a levy holiday.

However, the waiting period until completion and transfer might not suit you and if you buy early in a new development with only a few of the planned homes already built, not only will you have to live in a sparse environment for some time, you will have to put up with contractors going in and out, and inconveniences of construction works.

In established estates, there is little risk of having to endure the disruption of ongoing construction. At most, the odd renovation might cause a minor inconvenience.

These areas also have developed infrastructures and amenities and home gardens and communal green spaces are likely to be well established.

Security

Determine what level of security you’re looking for because the tighter the security, the higher the day-to-day restrictions for residents and the effort required with systems and protocol and, if there is technologically advanced security, it can be challenging for some to master and have the patience to use properly.

Rules and regulations

Some estates have stricter rules than others and not everyone wants factors like the variety of plants in their garden dictated to them.

Take your time to read the regulations of the estates in which you’re interested before making a final decision.

Levies

These are recurring monthly expenses, and they can often be quite a significant expense so add this to your overall budget when you start looking for a property to buy.

Also make sure you know exactly how the levies are calculated, what they include, and how they are spent. As a rule of thumb, the better the amenities and the more established and better maintained the communal areas, the higher the levies will be.

Body Corporate/Home Owners Association

They are responsible for the general maintenance and upkeep of all public spaces in the estate and are tasked with ensuring that the overall look and feel of the estate is always on a set standard,

Regardless of whether the property is being purchased to live in or as an investment, it is important to ensure that the estate is financially secure and backed by reliable investors.

At the end of the day, the governing body’s role – and how well they perform it – impacts your property’s future value so do some research to determine their management track record before committing to purchase.