Real Estate Investor Magazine South Africa July/August 2019 | Page 29

T
he FNB Property Barometer for 2019 indicated a low 3.7%
generally concludes in under six months and where you
year-on-year growth in February this year, compared to the
essentially pay a team of advisors and professional consultants
4.2% year-on-year CPI for the same period and the 3.8%
to guide you through the process and perform a lot of the admin
annual average recorded in 2018. This slow growth coupled with
on your behalf.
a potential sentiment boost following the recent election results,
Building
might lead to a buyer’s market emerging across the greater part
Jennings explains that while a key benefit of building a
of South Africa.
property is the autonomy it offers the purchaser to create a truly
This is according to Sheldon Jennings, Architect and founder
novel and tailor-made space for his or her family, the process is
of Archimedes Design – an innovative architecture practice
not without its own pitfalls.
in SA, who says that the first consideration for first-time home
When building there could also arise unforeseen costs, such as
seekers should be whether to buy a pre-existing home or take
special levies that apply depending on factors such as elevation
up the challenge of building a tailor-made family home.
above natural ground level, or if a second dwelling will be added
“Selecting the most financially viable option that can also
to the property for example. Many first-time developers forget
serve practical lifestyle requirements is usually a deciding factor
to add some hidden fees into their initial cost estimate. While
for first time home-seekers looking to acquire a family home.
they may have accounted for the professional consultants’
Unfortunately, there is no cut and dry answer when it comes to
fees such as the architect, engineer and the construction team
deciding whether to build or buy. From city to city the cost of
– they might neglect crucial items such as the geotechnical
construction and land vary vastly, and one needs to decide on
survey, (which helps to establish the subsurface soil and water
a case-by case basis.”
conditions that influence the structural design) or development
Jennings identifies the following pros and cons for each of the
levies payable to the city.
options:
Another hidden issue to be aware of is the potential for
Buying a property
subsurface boulders that may need to be removed at great
Purchasing a property could yield less unforeseen costs,
expense and effort. Additional elements that contribute to
provided that a comprehensive property inspection is
the cost of construction - such as steel reinforcement in the
conducted prior to the offer being made.
foundations – might also need to be
Think about it as if buying a second-hand
added if the soil is found to have a high
Selecting the most financially
car versus a new car. As is the case with
clay and water content following a
viable option that can also serve geotechnical survey.
purchasing a second-hand car there are many
practical
lifestyle
requirements
hidden expenses that might creep up down
On the other hand, a Geotechnical
is usually a deciding factor for
the line, such as maintenance on individual
survey might reveal ideal building
first time home-seekers looking
elements that have suffered wear-and-tear.
conditions and therefore lessen the
Common examples would be broken or
overall expected cost of construction.
to acquire a family home.
cracked tiles, corroded roof sheeting that
When building with a qualified team
Unfortunately, there is no cut
cause leaks and even foundation settlement
the client can at least have peace of
and dry answer when it comes
that may compromise the structural integrity
mind that the building’s structural
to deciding whether to build or
of the building.
integrity is intact and that there are no
buy.
From
city
to
city
the
cost
Buyers must also be very sure to scrutinise
hidden flaws or latent defects that will
of construction and land vary
the council approved building plans –
plague them down the line.
vastly, and one needs to decide
which should be provided by the property
It is therefore always advised to
agent – against the existing structure on the
consult with an architect before
on a case-by case basis.
property. In some cases, the current owners
purchasing a piece of land to develop.
may have added a bedroom, entertainment
Remember that the home you envision
area or second dwelling without attaining the necessary council
is not always possible. Elements such as height restrictions,
approval. In these instances, the new owners may be liable for
boundary lines and aesthetic finishes are usually determined by
hefty fines of up to 100% of the building costs of the illegal
the local council and it is important to be aware of these in order
structure and in worst case scenarios where local building
to have a realistic idea of what the finished product you envision
regulations were not adhered to, council has the right to issue
on your new piece of land will look like.
a demotion certificate for illegal parts of the building. As most
Jennings advises that many architecture practices, including
buildings are sold voetstoots in SA – costs that arise as a result of
Archimedes Design, waves consultation fees if the buyer decides
these penalties will likely fall on the shoulders of the buyer alone.
to continue with the purchase and appoints the firm for the
There are several property inspection firms in the country
design process. If the buyer is seriously considering a purchase
who conduct these pre-purchase inspections, but Jennings
it is a worthwhile exercise to ensure that the right decision in
advises going with a firm that employs professional architects or
made, with all the right information at hand.
engineers to ensure that the inspection is of the highest quality
He concludes that building a custom design that is tailored to
and to provide credibility, should the buyer wish to utilise the
your family’s unique lifestyle requirements is usually a bit more
report for a potential discount on the asking price.
effort, but it can be very cost effective, and it is usually worth it.
On a more positive note, a key benefit of buying a ready-built
“One thing is for certain, if a client is willing to go through a
home is that you don’t have to go through the many stresses
little extra effort, one can create a unique space to enjoy with
and the extended timeline generally associated with building.
friends and family that need not cost as much as purchasing a
From transfer of property to council approval, the timeline of the
pre-existing home and renovating. More often than not we see
entire construction process can easily exceed six months and
greater long term satisfaction with a home that has been built
can take even longer if unexpected hick-ups arise.
specifically to cater to a client’s need, rather than a purchased
For individuals who are not prepared to go the extra mile
home,” said Jennings.
and who do not have the time and capacity to invest in the
construction process, it may be better to opt for buying, which
RESOURCES Archimedes Design
SA Real Estate Investor Magazine JULY/AUGUST 2019
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