Weekend Argus (Saturday Edition)
City approves subdivision rights on most properties
AMENDED municipal bylaws have now made it possible for home owners to build second dwellings on their properties.
This will come as good news to those who want to subdivide land to meet the growing demand for housing in Cape Town.
“The City of Cape Town’s municipal bylaw was recently amended to create an automatic right to build a second dwelling on almost all properties in Cape Town, even if the zoning is single residential, rural or agricultural,” says Lara Colananni, specialist conveyancing attorney at Guthrie Colananni Attorneys.
“The beauty of the amendment is that it creates opportunities to unlock value in almost every property in the Western Cape without going through the tedious process, costs and stress of obtaining a departure from the council.”
A homeowner can sell a second dwelling or the right to construct a second home on the property. Colananni says this can be done either by subdivision or by opening a sectional title scheme on the property.
All this can yield excellent returns and offers investors many benefits, from lower rates and taxes to reduced maintenance, says Claude McKirby, Southern Suburbs co-principal for Lew Geffen Sotheby’s International Realty.
“The bylaw amendment is especially good news for homeowners who need a cash injection or who want to pay off their bonds more quickly. It is also welcome news for retirees and empty-nesters who don’t want to move away from the area in which they have lived for many years.”
However, he cautions that while many larger properties in older established suburbs lend themselves to being subdivided, one must remember that set minimum sub-division sizes vary from suburb to suburb, and this will determine whether to opt for subdivision or sectional title.
“In Bishopscourt, for instance, most plots cannot be divided to less than one acre – 4 046m² –– so subdivision is not possible, but the land can still be split by creating a sectional title register, which is a simpler process.”
He says the position of the existing house is pivotal as a building in the centre of a plot will limit options for further development, as will the possibility of creating two separate access points.
Although property owners now can split their property, there are still many regulations governing the process. Colananni says the best way to manage it all and avoid delays and pitfalls is to appoint a team of professionals from the start.
“In addition to zoning laws there are other bylaws relating to building regulations and approval of building plans on your particular prop- erty, so expert advice is essential.”
If owners follow this route and build as per the regulations and plans, says Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, the benefits of sectional title ownership – which many find unappealing – far outweigh the disadvantages.
“The main advantages are that you can now sell the separate granny flat or cottage on your property without obtaining a subdivision and, most notably, you don’t have to sell your whole property if you want to liquidate some capital.
“You also don’t have to worry about the costs and cash flow nor the time-consuming inconvenience of building a second dwelling, because you can sell the right to extend the scheme and municipal services and amenities don’t have to be duplicated.”