Gauteng buyers snatching up sectional title homes
THIS is according to Charles Vining, Seeff’s managing director in Sandton, who says sectional titles have many benefits, including affordability, good security, lock-up and go capability, sound resale value, modern finishes and general peace of mind. It is especially favoured by first-time home buyers, older people looking to scale down and buy-to-let investors.
Vining says Rosebank comprises 80 percent 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 percent and 74 percent 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 in this area 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 and Strathavon. They can go all the way up to R50 million for magnificent penthouse apartments, says Vining.
Tony Ketcher, Seeff’s managing director in Randburg, says 32 percent 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.”
Shawn Mackrell, managing director in Johannesburg South, says in this area sectional title accounts for around 40% of properties.
“Sectional title units in this area are 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.
Prepare to invest time and effort
Owning a buy-to-let property demands time and effort, and investing in sectional title means dealing with the respective bodies corporate.
Think long term
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.
Maintain, maintain, maintain
Buy-to-let investors should always keep their properties in good condition to be assured of better tenants at higher rentals.
Calculate the costs
Familiarise yourself with details regarding monthly costs such as levies, rates and taxes and other special fees that may be payable in future.Property24.com