Real Estate Investor Magazine South Africa April 2014 | Page 38

ACQUIRING

BY ROGER HUDSON

Town house living

An appealing addition to your property portfolio

T

ownhouse living is becoming more popular
than ever, because of the security advantages,
the lock-up-and-go lifestyle offering and the
fact that in many cases you can still enjoy the privacy
of having your own stand- alone home, as opposed to
being part of an apartment complex.
The negatives are that because of the high demand,
town houses do not offer good value for money, and the
cost per square meter is about 30% higher than the cost
per square meter of a free-standing home. In addition,
both rates and levies will be payable, so monthly costs
are also slightly higher – but this accounts for the
additional benefits of security, homeowner’s / body
corporate management and external maintenance.

TOWN HOUSE BOOM
For the first time since the 2008 market crash,
developers are back in the market and town
house developments are starting to sell quickly
again. Essentially, buyers who are in the market
for town house living will prioritise security and
low maintenance, and may be willing to forego
the luxuries of space, large private gardens and
the freedom to make their own decisions.

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April 2014 SA Real Estate Investor

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Every town house development will be governed
by a body corporate or homeowners’ association, and
hence each homeowner will be required to comply
with their rules.

Johannesburg
According to Anthea Deneys of Monolith Estates,
buy-to-let is big business, and investors are smiling in
2014. The market has shown a significant growth from
previous years with demand outstripping supply for
medium level accommodation.
The northern suburbs of Johannesburg have been
identified as a node of growth. Both business and
residential property in this area have mushroomed
in recent years, and Monolith Estates is the foremost
agent in the area. It has the residential market sewn
up, with a sophisticated management programme
designed to facilitate rental and property management
services. Investors can secure their property, and
leave it with the staff at Monolith Estates to source
and screen tenants. The business structure is customgeared to ensure ongoing payment of rentals, repairs
and maintenance. Owners are relieved of mundane
responsibilities, and can focus on ensuring the growth
of their portfolio.
www.reimag.co.za