YOUR FIRST HOME OR INVESTMENT

Navigating the small-home-best-address modern urban living trend and insuring your first car.

MANAGING DIRECTOR, BLOK, JACQUES VAN EMBDEN

YOUR FIRST

HOME OR INVESTMENT G: What’s your advice for people who want to buy their first property?

Ask yourself: can you afford the property and subsequent monthly services? If you get that wrong, it’ll cost you money, as you may encounter frictional costs when you come to sell it. Visit credible websites such as ooba.co.za to read about transfer fees and transfer duty (included in the price if you buy from a developer) and then ensure you have enough spare income to cover increases in current lending rates. Whilst I believe they’ll remain below historic levels, they’ll rise in the year ahead.

G: What fundamentals should first-time buyers consider when viewing properties?

Start by looking at the community in which you’d like to live as its surroundings will significantly impact your quality of life. Once you’re happy with that, look at the building to see if you like it, and check out its amenities.

G: Why should first-time buyers consider micro and studio apartments?

The phrase ‘small home, best address’ best describes these cost-effective units in South Africa’s most desirable areas. It’s a good idea to cash in on this international trend, which is set to experience capital and income growth over the next decade. People prefer the urban-living lifestyle and its broader ecosystem to their home’s size. The buildings where you’re most likely to find a studio or micro apartment tend to be modern and have facilities such as rooftop pools, delis and gyms where residents can socialise. These homes are human-centric, intelligent and functional yet aesthetically pleasing and pleasant to touch or feel.

G: Why is location important?

Property is a long-term holding asset, meaning you have to be sure your home or investment is in an area that’ll always be in demand. If you aren’t sure, your investment could disappoint you, or you might not enjoy living in your new home.

G: How can you save money when you buy your first property?

Does the building have modern appliances, fittings, fixtures and plants? It might sound boring or

challenging to find out, but this is what ends up costing you money. An ancient geyser can be expensive to run and negatively impacts the environment, whereas efficient and environmentally designed and fitted homes can save up to 50% of your monthly costs for water, electricity and waste. So making sure your building has covered these will be good for your pocket and Earth.

G: Where should young women consider investing in property?

Ideally, you should be able to walk through an area alone without feeling at risk or compromised.

G: The perception of some suburbs is that they’re expensive. Can a first-time buyer afford to live there?

The answer is simple: shift your expectation of the size of your home. There are great options available to suit most price ranges, but you have to buy into modern urban living and spending time with your local community. You’ll be living in a modern building with excellent finishes. I know so many people facing this reality who’ve taken a leap and never looked back.

For first-time home buyers, it’s about having a financially efficient home in a decent suburb. You might gain 20% to 30% more space if you live in another area, but you’ll increase your cost of living in terms of time and travel, and you won’t have access to the best quality of living.

Buying in the ’Burbs is one of the best options for investors. This combination of a defensive position in in-demand areas with decent yields wasn’t available before and is sure to drive demand and, therefore, pricing, ensuring an excellent return on investment.

G: What layout, design, innovation and fittings should these apartments have?

Consider buildings that cleverly use space. When you go small, you never have enough space, so check if you can store bags above cupboards or in drawers. Is there enough room in the kitchen for your beloved wine and whisky glasses?

“Is there room for your wine glasses?”