Sectional title prevalent and popular in Gauteng, says Seeff
The continued development of sectional title complexes all over Gauteng is a clear indicator that there is a strong trend of buying and investing in this type of property and that the popularity of it is not going to dwindle anytime soon. Sectional titles has many benefits including affordability, good security, lock up and go capability, sound resale value, modern finishes and general peace of mind and is favoured by especially first time home buyers, older people looking to scale down and buy-to-let investors. Charles Vining, Seeff’s Managing Director in Sandton, says Rosebank comprises 80% sectional title living, including a mix of older units that have been refurbished as well as new, modern units aimed at professionals working in the area or using the Gautrain to commute. “Douglasdale and Craigavon, in the greater Fourways area comprise 57% and 74% sectional title property, respectively. For buyers in these suburbs, the sectional title property offers not only convenience and security, but also an affordable entry into the property market. In the heart of Sandton, the sought-after suburb of Morningside is 68% sectional title. Units here are popular among buy-to-let investors looking to rent to professionals who prefer working in the area because of the convenience afforded by the location. Prices for sectional title units in central Sandton start at around R850 000 in areas like Morningside, Sandown & Strathavon and can go all the way up to R50 million for magnificent penthouse apartments”. Tony Ketcher, Seeff’s Managing Director in Randburg says 32% of front doors in the greater Randburg area are sectional title units. “There was a huge spurt in sectional title growth from 2002 to 2008, making the majority of sectional title complexes in Randburg relatively modern. There are however many older complexes that need upgrading, but these units will generally be more affordable than the newer ones”. Ketcher says the prices of sectional title complexes vary across suburbs, but the predominant price range is between R500 000 and R1.2 million. “In a suburb like Northcliff some units are priced upwards of R2 million”. In Johannesburg South, sectional title accounts for around 40% of properties, says Shawn Mackrell, Managing Director for the area. “Sectional title units here are extremely popular from a security perspective. Entry level prices in areas like Winchester Hill, Meredale, Naturena, Ridgeway and Oakdene range from around R450 000 up to R1.5 million in suburbs like Glenvista, Bassonia, Mulbarton and Meyersdal”. Samuel Seeff, Chairman of Seeff Properties, offers the following advice to investors looking to obtain sectional title for buy-to-let purposes: - Do your homework thoroughly. While it is true that there is a growing demand for rental property all over the country it is still important that buy-to-let investors equip themselves with specific knowledge as to the price bands that are most in demand to eliminate the risk of a vacant property. - Owning a buy-to-let property demands time and effort and investing in sectional title means dealing with the respective bodies corporate. - Yields may not always perform as you would like them to as they fluctuate depending on the market. It is important for investors to be patient and to keep long-term goals in mind when times are not favourable. - Buy-to-let investors should always keep their properties in a good condition to be assured of better tenants at higher rentals. - Familiarise yourself with details regarding monthly costs such as levies, rates and taxes and other special fees that may be payable in future.