Same ad­dress, new-look home

Ren­o­va­tions are the rage de­spite chal­leng­ing eco­nomic cli­mate

Weekend Argus (Saturday Edition) - - PROPERTY - BONNY FOURIE

HOME up­grades and ren­o­va­tions are con­tin­u­ing un­abated in a num­ber of Cape Town sub­urbs, with own­ers rein­vest­ing in their homes in spite of months of fi­nan­cial tur­moil.

In fact, it is the eco­nomic crunch and cost of pur­chas­ing new homes that are mak­ing peo­ple stay put and al­ter prop­er­ties to suit chang­ing needs, in­stead of look­ing for new homes.

“On the whole, higher trans­fer duty and cap­i­tal gains tax, along with gen­eral trans­ac­tion costs, have re­sulted in more home­own­ers up­grad­ing,” says Se­eff City Bowl agent Michele Ap­per­ley.

This trend – for sim­i­lar rea­sons – is seen also in the south­ern sub­urbs and on the At­lantic se­aboard.

Sta­tis­tics on the na­tional ren­o­va­tions mar­ket mir­ror this, show­ing own­ers mak­ing value-adding home up­grades.

The “top level” of all the lev­els an­a­lysed in FNB’s Res­i­den­tial Main­te­nance and Up­grades Prop­erty Barom­e­ter in­creased to 22.5% in the fourth quar­ter of last year from 18.5% in the third quar­ter.

“We had ex­pected the de­cline in the level of these costly value-adding up­grades to con­tinue, given the tough eco­nomic times, but per­haps such ex­pec­ta­tion will prove pre­ma­ture,” FNB’s house­hold and prop­erty sec­tor strate­gist, John Loos, said in the re­port.

This in­crease, plus a de­cline in the low cat­e­gory “only at­tend­ing to ba­sic main­te­nance”, con­trib­uted to a re­newed in­crease in the FNB Home In­vest­ment Confidence In­di­ca­tor fol­low­ing a few prior quar­ters’ de­cline”, says Loos.

Although many own­ers are up­grad­ing homes to avoid costs as­so­ci­ated with ac­quir­ing new prop­erty, there are some sell­ing when homes no longer meets their needs.

“Home­own­ers are also ren­o­vat­ing to ac­com­mo­date more fam­ily mem­bers, or build­ing sep­a­rate cot­tages to en­ter the Airbnb mar­ket,” says Co­lette Jack­son, an agent for Se­eff City Bowl.

Se­eff City Bowl agents Michael Hauser and Doris Rick­etts agree, say­ing Vre­de­hoek and Oran­jezicht are pop­u­lar ar­eas for those look­ing to ren­o­vate older homes there.

On the At­lantic se­aboard, Se­eff sec­tional ti­tle agents Hi­lary Bi­carri and Bryan Gins­burg say the area is be­ing scouted by po­ten­tial in­vestors look­ing to pur­chase un­ren­o­vated apart­ments in older build­ings.

“In par­tic­u­lar, Sea Point, Bantry Bay, Green Point and Three An­chor Bay are go­ing through rapid trans­for­ma­tion in which ex­ist­ing ameni­ties are be­ing matched to trendy apart­ment spa­ces,” Bi­carri says.

For the lux­ury sec­tional ti­tle mar­ket on the At­lantic se­aboard, the shortage of stock and ris­ing prices are def­i­nitely con­tribut­ing fac­tors for prop­erty own­ers to stay put and rather up­grade. This is seen par­tic­u­larly in Camps Bay, where Se­eff agents Pola and Na­dine Jocum say buy­ers have snapped up and ren­o­vated older homes, even de­mol­ish­ing to make way for trendy vil­las.

How­ever, they note there are sev­eral prop­er­ties on the mar­ket in the R20 mil­lion plus range where own­ers have over- cap­i­talised and are look­ing for too-high prof­its re­lated to im­prove­ments made, lo­ca­tion and views. These cases serve as warn­ings to some own­ers and in­vestors. An­other warn- ing is that ren­o­va­tions purely with the view to get­ting higher prices or yield­ing bet­ter prof­its are not ad­vis­able, says Se­eff Prop­erty Group chair­per­son Sa­muel Se­eff.

“Re­mem­ber tastes dif­fer; ren­o­va­tions may not suit a po­ten­tial buyer.”

Rather, home­own­ers should keep up with home main­te­nance and re­pairs.

Home­own­ers on the At­lantic se­aboard are up­dat­ing fix­tures and fit­tings and ex­tend­ing prop­er­ties, says Basil Mo­raitis, Pam Gold­ing Prop­er­ties agent for the area.

“Many ren­o­va­tions are re­flec­tive of the in­creased value of sur­round­ing prop­er­ties. Ren­o­vat­ing older prop­er­ties in the At­lantic se­aboard sub­urbs is also di­rectly at­trib­ut­able to home­own­ers here not wish­ing to move out and the con­se­quent lack of op­tions within these sub­urbs.”

The south­ern sub­urbs are also see­ing con­stant up­grades, says Sa­man­tha Nel, Pam Gold­ing Prop­er­ties agent for the

‘Look at other

area. “Kitchens and bath­rooms add the most value. Ren­o­va­tions with ap­proved plans and to a high spec­i­fi­ca­tion will ob­vi­ously as­sist in achiev­ing top prices for sellers. It’s a good idea to have a look at other ren­o­vated prop­er­ties in the area be­fore de­cid­ing on cap­i­tal out­lay and ren­o­vate ac­cord­ingly, so you do not over-cap­i­talise.”

Across Cape Town, up­grades are hap­pen­ing at all stages of home own­er­ship from en­try level up­wards, says Chris Tyson, CEO of Tyson Prop­er­ties.

Ma­jor al­ter­ations, like ex­ten­sions, are also usu­ally car­ried out by those un­will­ing to sell, he says.

For those who are ren­o­vat­ing to sell, Tyson ad­vises: “Some­times we rec­om­mend peo­ple do ren­o­va­tions be­fore they sell, but with­out over-cap­i­tal­is­ing. This would be more cos­metic, such as re­paint­ing and fix­ing taps and gut­ters.

“If the prop­erty looks ne­glected, buy­ers will make lower of­fers as they’ll be con­cerned about how much work re­mains to be done.”

Be­fore and af­ter pic­tures of a prop­erty in Dawlish Court, Hall Road, Sea Point. The bach­e­lor’s unit was bought in March last year for R1.705 mil­lion, ren­o­vated into a one-bed­room unit and sold for R3m in Jan­uary this year.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.