Business Day HomeFront 11 August 2017

HOMEFRONT 13 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 11OCTOBER AUGUST 2017

MUST READ

Bush luxury at your service PAGE 2

Beware of Airbnb tax pitfalls PAGE 12

Trend: cities changing fast PAGE 16

Sectional title and your pets PAGE 19

Urban renewal of old neighbourhoods Suburbs that have fallen out of favour are increasingly being targeted by developers for rejuvenation. What is the model for successful upliftment and developers’ profits?

PAGE 8

HOMEFRONT DÉCOR AND LIFESTYLE

Light touch An eco ethos and forward-thinking design give luxury bush lodge Pel’s Post its X-factor WORDS: JULIA FREEMANTLE :: PHOTOS: ELSA YOUNG

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ush lodge décor is an art that requires an understanding of the site that goes beyond decorating the inside space alone. Being in tune with your immediate environment as well as the greater environment is never as important as when the interior and the outdoors function as one.

During the design process of Pel’s Post in the Kruger National Park’s Makuleke Concession, part of the Rare Earth group of boutique hotels, the architect and décor teams took cognisance of the company’s vision and made it manifest through savvy choices. An exclusiveuse satellite lodge, it accommodates eight people in four suites for an intimate and private group or family getaway.

It provides the luxury and convenience of a hotel and the ease and comfort of home. The lodge is fully

SUSTAINABLY SAVVY The sense of being at one with nature isn’t just at surface level. Pel’s Post is a luxury lodge that is light on its location from a big-picture point of view.

“We wanted to disturb the natural environment as little as possible and use the bare minimum of invasive permanent materials,” says architect Dael Fairbairn.

The entire structure, should it be removed, would leave next to no trace after a few months, with the land returning to its original state.

The day-to-day running of the lodge is made possible by a system comprised of solar power and recycling, aimed at reducing the carbon footprint. Produce from local small-scale suppliers is favoured, thereby also supporting the surrounding community.

serviced but as there are no other guests to factor in, the experience and schedule is flexible. Placed in one of the richest and most varied parts of the Kruger Park, the lodge’s mandate was luxury with a conscience: a contemporary bush getaway designed to offer an immersive, five-star experience, but at little cost to the environment.

UNOBTRUSIVE Its layout is unique.

Conceived with the primary aim of showing the location to its best advantage, stilted openplan suites look out over the bush, but are unobtrusive. The almost industrial aesthetic gives them a rawness that feels fitting. Says Dael Fairbairn of Fairbairn Erasmus Architects: “Our aim was to build a camp with the lightest footprint possible that would integrate with the ‘genius loci’ (the spirit of the place).”

HOMEFRONT “We wanted to disturb the natural environment as little as possible and use the bare minimum of invasive permanent materials” Dael Fairbairn, Fairbairn Erasmus Architects

The firm has extensive experience in lodge design — something this project called for in order to find the balance between creating a venue that met the design standard, but would not detract too much from the compelling setting.

The sense of the lodge blending into the site extends from the ethos and structure to the décor, which was designed to mirror the exterior and at the same time create a comfortable, stylish space.

CONTEMPORARY To further the goal of having the structures blend into the environment, interior designer Merylle Legh chose a palette of tones that would echo the setting.

Pops of colour mirror what you see from the lodge — tones of rust, slate, clay, copper and grey mirror the sky, earth and vegetation.

High-end furniture and other objects in these hues create a distinctly

contemporary feel — a space that would not look out of place in the city, but sits perfectly in its surroundings.

This was achieved with edgy pieces and natural but luxe textures that look modern but also feel earthy, to form an overall warm, but up-to-the-minute effect that also champions local artisans. This, with the clever use of space (smart, sleek storage and compact and clean lines), creates a look that is as far from a stereotypical beige bush lodge as you could imagine.

“We tried to move away from the traditional lodge look and feel by incorporating contemporary design, but at the same time we were very aware of creating an aesthetic that suits the environment,” says Legh. And when you’re sitting on a barstool at sunset or grouped late into the night around glowing embers in the sunken firepit, the experience is designed to bring you closer to nature.

The epitome of this is perhaps evident in the rooms, where remotecontrolled retractable screens are all that separate you from the night sky while lying in bed.

BALANCE The balance between sustainability and luxury is delicate. Luxury is synonymous with comfort, and in the 21st century this often comes in the form of convenience and access. Here, those are on offer, but it’s really immersion in the setting that will leave its mark.

While the lodge offers the ultimate safari perks — it is fully serviced by its own chef, housekeepers and guides — its combination of future-proof processes and five-star comfort sets a new standard for bush lodges, whose primary focus, surely, is to honour the environment it benefits from.

TRAVEL Pel’s Post is on the border of SA, Mozambique and Zimbabwe, a seven-hour drive from Johannesburg.

Reach the lodge through the Pafuri Gate of the Kruger National Park.

Alternatively, from September 15, fly direct three times a week on Federal Airlines from OR Tambo International Airport. It is a 20-minute drive from the landing strip.

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HOMEFRONT HOME SENSE

Dream build Building your own home is costly and time-consuming. It pays to use an architect WORDS: ANNE SCHUAFFER :: PHOTOS: ISTOCK

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here’s something very special about imagining and building your own home, but before you venture down that road, examine your budget, do some homework and speak to others who have chosen this route. It’s not for the fainthearted because on a budget you need to be comfortable with compromise, otherwise you will be tapped out before you have reached the front door.

For some, it sounds cost-effective to reduce the services of professionals, DIY some of it yourself and shop around. After all, you know exactly what you want, so do you need an architect? Surely you can project manage this yourself?

Be warned — managing a project of this nature is not simple. It is timeconsuming and unless you have requisite skills, mistakes made on your watch can be extremely costly. It is also worth bearing in mind that, in most instances, an architect or sometimes a contractor will have excellent buying relationships with suppliers, so a tile that

you would pay R100 for they will obtain on your behalf for R75. Architect Torbjorn Hanssen of U2 Design Lab cautions against oversimplifying the process. “Yes, you might have some great, clear ideas as to what you want, but it is more complex than simply drawing up a plan, particularly when you have a tight budget. Don’t waste your money on getting an architect to redesign a plan which the contractor cannot implement.

ENERGY EFFICIENT “Everything comes down to a square metre rate and inefficient or unwieldy designs are a big driver of costs — passages, for example, are essentially wasted space, yet you’ll be paying the self-same R10,000 to R14,000 a square metre as you will for your lounge. Passages are very simplistic, lazy ways to link rooms together, but they are not imaginative, useful or costeffective uses of space.

“One of the key elements of a professional house design is orientation — not simply which way the dwelling faces, but integral to that is compliance with the SANS 10400-XA legislation on energy usage

in buildings. There is give and take in a compliant design, so in order to get your expansive east-facing windows to take in the sea view, it will be balanced out with a covered veranda/thickened glass/louvres and so on.

Orientation is second nature to an architect.

“An architect simplifies the process. I get a brief from you. You hand me your wish list, we break it down into areas on a spreadsheet, and from the outset, establish costs, a budget. There are numerous elements which affect cost and I point them out,” says Hanssen.

“One of the costliest items when building a house is your choice of

“Don’t waste your money on getting an architect to redesign a plan which the contractor cannot implement” Torbjorn Hanssen, architect, U2 Design Lab

roof. If your dream is open rafters, you may think it is the less expensive option — no ceilings needed, so it must be, but it is not. They are achievable of course and I shall make sure you get them. You get them because I know how to design so as to maximise the ease with which rafters can be achieved.

“Many of the layman’s perceptions of less expensive options are invalid. Or, they may be valid at the outset, but they may have a shorter life or create other issues farther down the track.”

GOOD TO KNOW If you envisage one day expanding your twobedroom cottage into a four-bedroomed family home, rather get those additions designed by your architect now.

Project management is usually 30% of an architect’s fees, so if you have the staying power and skills to do it yourself, choose that option. It is a major cost saver. But chat to your architect about an hourly rate, suggests Hanssen, so you could still have access if there are any issues on site.

WESTERN CAPE AtlanticSeaboard 021 439 7415 / Southern Suburbs 021 673 4200

Clifton / R22.5 million plus VAT

Ref# AS1329316

Bedrooms 3 / Bathrooms 3 / Garage 1 / Open-plan lounge/dining/kitchen leading to a spacious undercover balcony with sensational views of the beach. This building comprises of one apartment per floor and has a communal pool with a large level lawn and direct access to the beach. Lock-up garage plus visitor’s parking bay completes this rare find.

Annette Hepburn 082 658 1116

Architect impression

Bantry Bay / R30 million

Ref# AS1297038

Claremont Upper / R19.5 million

Ref# KW1321959

This is one of the finest sites on the Atlantic Seaboard. 649 m² of residential vacant land bordering the Nature Reserve, with views towards Robben Island, Clifton and the Twelve Apostle mountains.

Full building plans by a leading architect are available, so everything is in place to start building your dream home on this unique site.

Bedrooms 4 / Bathrooms 4 / Garages 3 / Leisurely luxurious living. This exceptional family home in sought-after Hen & Chicken Estate offers the very best of elegant, sophisticated living with generous bedroom accommodation and spacious living rooms. Bonus: triple garage, superior staff accommodation, top security and sparkling enclosed pool and outside entertainment area.

Jackie Rosenberg 083 414 6600 / Janice Toay 082 770 1510

Exclusive Agents: Myrna Duveen 082 443 8417 / Christiaan Steytler 082 658 0071

CAPE WHALE COAST Arabella: 028 284 9385 • Betty’s Bay: 028 272 9145 • Hermanus: 028 312 1110 Kleinmond: 028 271 3423 • Onrus: 028 316 3390 • Pringle Bay: 028 273 8326

We are Kwaaiwater

Kwaaiwater / R19 million Quintessentially the best position for whale watching, this heritage site is an opportunity to restore a great landmark. Set on 4 plots with spectacular views over Walker Bay and Sievers Point. The possibilities are endless. Ref# HF1327068 Rose-Marie Marais 082 877 6160 / Sue Ralph 082 892 8772

Ref# HF1329451

Ref# ON1318687

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Fernkloof / R10.5 million

Benguela Cove Lagoon / R9.5 million

Chanteclair/Onrus / R1.75 million

Bedrooms 5 / Bathrooms 5 / Garages 2 Elegant and exclusive living. This exceptional residence has been professionally renovated with fine workmanship, high-end accessories and attention to detail.

Uninterrupted mountain views.

Bedrooms 4 / Bathrooms 4 / Garages 2 New release in exclusive estate. Set on a secure, private wine estate adjacent to the Botrivier Lagoon. Panoramic views of lagoon, Kogelberg Mountains and countryside.

Unique position. Large plot on the slopes of the Onrus Mountains, ideal to build your dream home. Uninterrupted views of Walker Bay and Onrus lagoon.

Santa Bedeker 082 772 7052

Niel 082 967 0813 / Dinita 082 898 4519

Sandra Boshoff 082 873 0166

Ref# KN1297106

Ref# KN1321538

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Pringle Bay / R4.95 million

Betty’s Bay / R3.95 million

Somerset West / R4.65 million

Bedrooms 4 / Bathrooms 3 Hilltop heaven close to the beach.

Immaculate modern holiday home enjoys magnificent views of the river, beach and mountains. Only a 5 minute walk to the beach.

Bedrooms 5 / Bathrooms 4.5 / Garages 2 Dual-living family home in sought-after Bass Lake area, Situated in one of the most desirable areas in Betty’s Bay. Bass Lake offers beautiful lake and sea views as well as dramatic north mountain views.

Bedrooms 3 / Bathrooms 2 / Garages 2 Breathtaking mountain views with separate flat and cottage. Lovely north-facing home overlooking the Helderberg and Hottentot Holland Mountains. Quality finishes throughout and security.

Nicola Lloyd 082 443 8376 / Wendy Cilliers 072 340 8263

Mary-Louise Van Rooyen 082 594 0949 / Peta Bodley 083 528 1290

Mabel Botha 083 458 3782

CAPE WINELANDS Franschhoek: 021 876 2100 • Paarl: 021 871 1480 • Somerset West: 021 851 2633 Stellenbosch: 021 887 1017 • Wellington: 021 873 4557

Strand / R3.85 million Bedrooms 3 / Bathrooms 3 / Garage 1 Luxury beachfront living at its best. Well-positioned across from the sandy beaches of Strand, this apartment offers views. 24-Hour security and loads of parking. Ref# SW1301156

We are Strand

Edelweiss Hankey 083 252 1964 / Burger van Dyk 084 540 4543

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Paarl / R7.595 million

Val de Vie, Paarl / R4.85 million

Boschenmeer, Paarl / R9.65 million

Bedrooms 5 / Bathrooms 3 / Parkings 3 Executive home with views.

This property is situated on the northern slopes of Paarl Mountain and is the ideal family home for buyers who love to entertain their friends and family. The house is well positioned on the extra-large plot.

Bedrooms 3 / Bathrooms 3 / Garages 2 Romantic and cosy family home. This newly painted light and cosy north-facing family home is situated in a quiet area of the Estate, bordering a green belt with beautiful views of the surrounding mountains.

Bedrooms 4 / Bathrooms 4 / Garages 2 Romantic and cosy family home. This newly painted light and cosy north-facing family home is situated in a quiet area of the Estate, bordering a green belt with beautiful views of the surrounding mountains.

Lana Du Toit 083 407 9659

Hayley 082 926 8587 / Jordan 083 298 1481 / Igna 082 884 8492

Igna 082 884 8492 / Hayley 082 926 8587 / Jordan 083 298 1481

Ref# FWI1328502

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Ref# WEL1328432

Franschhoek / R5 million

Franschhoek / R7.5 million

Wellington / R2.199 million

Vacant land. One of the last opportunities to design and build your home on a large plot within the top end of the Fransche Hoek Security Estate.

Bedrooms 5 / Bathrooms 4 / Garage 1 The well equipped kitchen and formal lounge with fireplace and enclosed patio overlooking the well-manicured garden and sparkling pool are ideal for endless entertainment and relaxation.

Bedrooms 4 / Bathrooms 2.5 / Garages 2 Family home with a warm and inviting ambience. Lovely spacious living areas and braai room with uninterrupted views. This neat home offers large bedrooms and a kitchen with laundry. Potential to have 3 garages.

Doug Gurr 072 610 7208 / Jeanine Allen 082 410 6837

Lynette Kannemeyer 082 672 1022 / Erika Odendaal 082 412 6964

Doug Gurr 072 610 7208 / Jeanine Allen 082 410 6837

HOMEFRONT REGENERATION

Urban renewal of old neighbourhoods Suburbs that have fallen out of favour are increasingly being targeted by developers for rejuvenation. What is the model for successful upliftment and developers’ profits?

WORDS: GEORGINA GUEDES :: PHOTOS: STEPHEN PILBROUGH AND SUPPLIED

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aking the business case for urban renewal of industrial and other neighbourhoods involves getting the location, pricing and timing right. Developers in these areas tend to be more entrepreneurial, and often have to identify opportunities that form part of a broader strategy for the location, rather than just creating a single, attractive development.

The upliftment of areas that have often fallen out of favour, but have a central location, are increasingly being driven by demand for more competitive rentals, an alternative lifestyle, convenient nearby retail spaces and less traffic and congestion than that in nearby desirable areas.

Urban renewal is a delicate balance of the old and new, time and money, and upliftment alongside respect for those who might be affected by the development of the area.

When this tightrope act can be mastered, it results in some of the more interesting areas cities have to offer.

These are some developers who are trying to find that balance:

1. Financial District, Johannesburg CBD “It’s about seeing the potential in an area — and it has to make sense financially,” says Herman Schoeman, CEO of Urban Ocean, which is developing a number of buildings in Johannesburg’s CBD. “You have to come in at the right time, at the bottom of the trend, and then try to impact the city or the streets around you to help create a positive trend that you can then ride.”

Urban Ocean owns 11 buildings along Commissioner Street, between Rissik and Simmonds streets.

Schoeman says the opportunity in

Johannesburg’s CBD lies in that there are a number of banks, mining houses and provincial government offices in the area, while most residential buildings and retail spaces have become dilapidated.

“There are a lot of corporates in the area and they have a vested interest in ensuring that the area is maintained,” Schoeman says.

His company’s strategy has been to reach for what he describes as “low-hanging fruit” — buildings that still have electricity and working lifts. “As an entrepreneurial company, we don’t have loads of funds, so we need to quickly get our buildings to earn an income, so that we can reinvest it.”

He says it is vital to have an overall vision of renewal.

“Most developers in this area are focusing on live, work and play. You can’t just do residential — you need a mix and it’s important to start bringing in lifestyle elements.”

In their buildings, Urban Ocean has created a coworking space named Urban Collective. It has attracted coffee shops, a pop-up arcade for fashion designers, and two new nonprofit companies, WeThinkCode and Digital Academy, to lure young people to work in coding jobs.

13 Brickfield Road, Salt River, Cape Town

2. WEX1, Woodstock, Cape Town Signatura and Indigo Properties have taken a similar approach to uplifting an area in Woodstock, Cape Town, centred around their joint venture development, WEX1. This nine-storey, 214-apartment block now under construction will ultimately be a mixed-use development on Lower Main Road.

“The value that has grown in the central part of the city — in the Cape Town CBD — has started to flow out towards the technically suburban area of Woodstock,” says Signatura director David Cohen.

Urban Ocean, offices, Johannesburg CBD

HOMEFRONT “The area is crying out for upgrades of various kinds — infrastructure, security and the development of accommodation close to the centre of Cape Town.”

Again, WEX1 isn’t a standalone development, but integrates with a broader strategy for the area. “It will bookend the whole of Lower Main Road between the Biscuit Mill and the Woodstock Exchange.

Access to Woodstock Station will become safe, and we are encouraging a car-free lifestyle among residents.

Parking bays are an optional extra and if you don’t take a bay with your apartment, you’ll get a free bicycle,” says Cohen.

The developers demolished an underused and dilapidated commercial and industrial block to make way for WEX1. It will ultimately feature eateries, coffee shops and retail space on the ground floor, including a fresh food and vegetable outlet, to cater for existing residents and hundreds of new residents the development should bring to the area.

Developers have to be aware of how the public perceives their projects.

High-profile cases, such as the nearby Albert Road evictions (which is awaiting a court decision), have raised concerns about displacing low-income earners to make way for costly new developments. Developers often target warehouse or industrial properties to avoid displacing residents.

3. 13 Brickfield Road, Salt River, Cape Town Adjoining Woodstock is Salt River, the once industrial

heart of Cape Town, and the site of a substantial urban renewal initiative made up of several projects that aim to increase and upgrade the available space — from the renovation of industrial buildings and the upgrading of sidewalks to the creation of a community playpark and art installations.

The development is a partnership between Investicore and Construct Capital. Dawie Swart, the CEO of Investicore, acquired 13 Brickfield Road in May 2015, and with finance from Construct Capital, has redeveloped it into a mixed commercial and retail space, housing The Deckle Edge, Bootlegger and Woodstock Bakery, among a mix of creative businesses.

“I aim to create an environment that can accommodate an eclectic mix of businesses to serve the area. From a chef’s academy, art supply store and restaurants to innovative tech companies and other creative industries,” says Swart.

Rentals in the area are “not inexpensive”, driven by the demand for space, less traffic and congestion and its proximity to the station. He says Salt River lends itself to redevelopment because it contains large industrial properties, which means the land assembly process is easier and less invasive to existing residents.

4. Lorentzville, Johannesburg Brian Green’s company Group 44 has been involved in high-profile urban renewal projects in Johannesburg, including 44 Stanley Avenue — the uplifted warehouse

WEX1, Woodstock, Cape Town area in Milpark that is now an exclusive retail and restaurant destination.

He is now tackling Lorentzville, a suburb on the edge of the CBD where Nando’s has its head office. But instead of gentrification, Green is determined to create a space that accommodates people already living there.

“We’re trying to get involved in the neighbourhood and take it along for the ride,” he says.

“We want to employ and work with the residents on our more formal operations, and find new ways of doing business. Hopefully they will

An apartment in Urban Ocean’s The Cornerhouse, Johannesburg CBD end up with more value in their neighbourhood.”

Green says the area is in a beautiful valley — a geographically distinct neighbourhood between two ridges with a river running through it. The 30,000m2 development will be centred around an artisanal campus, accommodating people from the area, including carpenters, metal workers, glass-blowers and framers who will make use of one another’s skills.

The project will include an urban farm school that will produce fresh fruit and vegetables to sell to the community and visitors from further afield. “We want to benefit from them, while they are benefiting from us,” says Green.

5. Rivertown Triangle, Durban CBD

East Brick Lane, Rivertown Triangle, Durban

Durban is also enjoying its share of urban renewal. One high-profile development is Propertuity’s Rivertown Triangle in the central city.

The developer has refined its model in Johannesburg’s Maboneng precinct, a reclaimed warehouse district that is a go-to destination for tourists and residents alike.

When complete, the Rivertown Triangle will comprise three-anda-half blocks with 23 developments — offices, restaurants, nightlife destinations, residential blocks and a boutique backpackers. Already complete is 8 Morrison Street, an industrial warehouse co-working office and retail space, designed to attract startups, entrepreneurs and creatives.

It also has cafes and retail stores. Down the road is the Rivertown Beer Hall and a Durban branch of Curiocity Backpackers.

The concept is described as “Beach. City. Life.” with the intention of allowing residents and visitors to enjoy what the city has to offer in one space.

HOMEFRONT TAX

Airbnb pitfalls Jeremy Burman of Private Client Holdings reminds property owners to consider their liability to the revenue service before spending that rental windfall PHOTOS: ISTOCK

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brief search on Airbnb reveals more than 10,000 property listings in Cape Town alone. If not doing it themselves, everyone knows of someone who has hit on the golden solution of renting out their property through this online platform while they head off for a holiday happy that they have obtained the ultimate house-sitters — those who pay for the privilege.

This allows for holiday and property expenses to be offset, often significantly, considering the going rate for a Cape Town property – in particular – in the peak season. But before spending the Airbnb windfall it is important to understand the tax implications of earning this income and to ensure adequate provision is made for any liability.

The earning of rental

income, into which category Airbnb income would fall, is regarded as a trade by the South African Revenue Service (SARS).

Owners of the Airbnb property must declare all rental income received or accrued during the tax year. They will be entitled to deduct any expenses incurred in the earning of this income, with the result that only the net profit will be taxable.

SHARED Where a property is jointly owned, for example by a married couple, the income and expenses will be shared equally between the owners for tax purposes — regardless of which person receives the income or pays for the expenses.

Since Airbnb undertakes to pay the landlord within 24 hours of the guests’ checkin, the receipt or accrual date will normally be the day after the occupation of

the premises. This date will determine the tax year into which the income will fall.

Section 11(a) of the Income Tax Act allows for the

BOND INTEREST DEDUCTION Earning Airbnb income does not give owners license to deduct all property expenses. As only part of the entire property expenditure incurred will relate to the Airbnb income, owners would be entitled to claim only a percentage of these expenses, equal to the number of days the property was rented out divided by 365 days in the tax year.

For example, if bond interest of R100,000 was incurred by an owner during the tax year and he rented out his property for only two weeks of the year, he would be entitled to claim a deduction of only R3,835 — R100,000 x 14/365 days.

HOMEFRONT “Expenses that may be claimed as tax deductions against rental income earned would include any incurred in owning and maintaining the property”

deduction of expenditure incurred “in the production of income” for the purposes of trade, excluding expenses of a capital nature. This section is limited by S23(g) that specifically prohibits expenditure “that is not laid out or expended for the purposes of trade”.

Expenses that may be claimed as tax deductions against rental income earned would include any incurred in owning and maintaining the property: for example, cleaning, security, rates and taxes, electricity, repairs and maintenance and bond interest.

argued that the cost of alternative accommodation is expenditure that is necessarily incurred in order to earn Airbnb income, it seems likely that SARS will accept only a reasonable portion of the owner’s accommodation expenditure.

This is on the basis that the remainder is not for the purposes of trade but for private purposes (travel, family time, relaxation).

Attempting to claim the costs of the entire family’s two-week holiday over the Christmas and New Year break may raise the eyebrows of the SARS auditors and run afoul of section 23(g).

DEDUCTIBLE Repairs and maintenance will be deductible provided these are not improvements to the property which add to its value and are therefore of a capital nature. Bond instalments must be split into the interest portion, which is claimable, and the bond capital repayment portion (a capital expense and therefore not claimable).

Less clear cut is whether the owner’s own accommodation costs will be claimable as a tax deduction for the period during which they are letting their entire house. Although it can be

2 bed 1 bath

R14 000

GREEN POINT

S EA VI EW P R O P ER T I ES

Hi Christine, I’m interested in renting the 2 bed in Green Point

Great Matt, let’s organise a time for you to view it.

South Africa’s favourite property website.

A home for everyone www.privateproperty.co.za

Where people earn taxable income from Airbnb which exceeds R30,000 a year, they will be required to register as provisional taxpayers with SARS and submit provisional tax returns on a biannual basis in August and February of each tax year. Failure to do so could result in SARS issuing nonsubmission penalties.

In addition, they will need to bear in mind potential capital gains tax implications on disposal of the property if rental activity becomes a regular occurrence.

In a tough economic environment where most South Africans have had to tighten their belts, the alternative income stream offered

by Airbnb is an attractive proposition — additional earnings with minimal attendant expenditure.

RECORDS However, along with packing away family heirlooms and clearing cupboard space, owners should keep adequate records of this sideline business to ensure tax efficiency and the ability to meet all resultant tax obligations.

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HOMEFRONT

PROPERTY TRENDS

Urban footprint L From the Dubai effect to the demand for more accessible mixed-use developments and inner-city densification trends — the world is changing fast WORDS: MIRIAM MANNAK :: PHOTOS: ISTOCK

ike the rest of the world, SA is urbanising rapidly.

Ensuring that our cities remain liveable, accessible and inclusive needs to be a priority of all stakeholders, including property developers. When it comes to buying space, people are looking for convenience — they want to live, work and play in the same area.

“The question is how to structure cities and property developments to deal with the urbanisation dynamics so that all urban advantages can be accessed,” says Herman Pienaar, director of City Transformation and Spatial Planning at the City of Johannesburg.

Here are six development trends:

1. The travel agent effect One of the trends property

developers should consider for the future is the importance of technology, says property economist Francois Viruly. “We have moved forward as a sector but we are still doing business the same way we used to. If we do not change, the fate of real estate brokers will be the same as what happened to travel agents,” he says, referring to the decline of travel agencies over the past decade.

Besides this, developers have to consider the growing need for accessible developments, says Pienaar. “In most cities, more than 50% of residents live within 1km of their transit system. In South African cities — Johannesburg in particular — we are at 11%. We are way behind.

Developing residential

projects near public transport systems is key.”

2. Accessibility and convenience Accessibility is something Power Developments has been taking seriously for a while, says senior developments manager Nick Ferreira. “One of our developments is Pelican Park in Cape Town. It comprises 3,000 homes and was built within easy access of roads and train routes,” he says. “We try to develop sites closer to where people work so that they don’t have to travel long distances.”

Urban transport consultant Gail Jennings agrees. She says this is what makes projects such as Johannesburg’s Corridors of Freedom initiative so valuable, referring to the city’s

HOMEFRONT new spatial plans based on transit-oriented developments (TODs).

“The initiative’s residential and commercial focus will be on mixed-use and accessible developments.

TODs create residential and work opportunities near public transport systems.

Poor accessibility is a big issue in SA,” she says.

In addition, cities need to encourage developments that include retail, office space, clinics, hospitals and schools. “Those are main reasons people leave their neighbourhoods.”

3. Back to the village The influence of technology, the availability

of safe public transport and an increased demand to easily access social activities will change the market. Viruly envisages a society with fewer cars and a demand for mid-income housing in CBDs. “People will want to move back to the CBDs after that wave of decentralisation that took them out to the suburbs in the 1980s,” he says.

Rabie Property Group director John Chapman believes traffic is a key reason more people want to go back to what he calls the village setup, which combines living, working and playing.

“People no longer want to sit in traffic for 90 minutes,

“Densification doesn’t mean a drop in standards or lower values” John Chapman, director, Rabie Property Group

twice a day. To them, this is wasted time. This mind-set is particularly prevalent among the younger audience. These are busy people who have more on their plate and need more time to cover their bases,” he says.

4. Beyond space Viruly agrees. People no longer want to buy a space, but an experience.

Its amenities and close proximity to Cape Town business hubs such as Century City and Bellville CBD are key reasons why Burgundy Estate has become so popular.

Perched on the foothills of Durbanville Hills, the estate comprises 3,000 apartments, townhouses and freestanding homes where average asking prices range from R1m for a one-bedroom flat to R2.36m for a fourbedroom house.

The development also boasts a shopping centre, parks, sports facilities such as a nine-hole golf course and a Curro private school.

“We have encouraged a Montessori School to join the community too,” Chapman says.

“Schools are big drivers of large-scale mixed-use developments. Education is the biggest priority of any young family.”

He adds that technology and connectivity have become a priority among property owners, too.

“That is why we are taking optic fibre into every new commercial and residential development — we are connecting our newgeneration buyers. Now you can have a 50m 2 flat with internet speeds equal to what you have at the office.”

5. The Dubai effect Pelican Park also has a strong mixed-use character. “We have clinics, schools, retail opportunities and various other amenities and facilities. You need to think about that when you build a certain number of homes,” Ferreira says, noting that the Cape Town mid-market is growing.

“Our developments — including The Vines that comprise 83 freestanding homes —and Belle Vue Estate, near Stellenbosch, have been very well received. All of these are in the mid-market range.

In Cape Town, it is difficult to find a home in the R1.5m to R2m price bracket.”

Francois says focusing only on the high-end residential market does not make sense in the South African context because the demand is in the mid-market.

Developers focusing on that segment can make it big. “Opportunities are one step lower from the high-end market.”

Viruly believes that SA’s mid-property market is huge and much bigger than the high-end market.

Property developers should focus on this market, also to prevent the Dubai effect — the many high-end apartment complexes in the city that are only used twice a year as holiday accommodation.

“They are fully sold out but no one is there,” he says, adding that this is not what makes a city liveable.

6. Selling experiences Densification is something property developers will have to embrace too. It is a good thing when done

right. “There is no value in growing a city’s footprint.

Inner cities can be densified in a conscientious way,” says Ferreira.

Chapman agrees. “There has been a resistance towards densification, particularly in typical residential suburbs. This is changing,” he explains.

“Today, we are seeing properties worth R5m to R6m being subdivided into four, with each of them sold for double the price of the original one. Densification doesn’t mean a drop in standards or lower values.”

Power Developments is investigating various innercity opportunities. One of the growing markets comprises professionals who live outside the city but don’t want to commute for hours every day.

Ferreira says: “Many of them buy property in the city so they can spend a number of nights there and go home at weekends.”

One of the inner-city projects Rabie is looking at is the redevelopment of the old Christiaan Barnard hospital in Cape Town. “It comprises 960 parking bays with a hospital space on top. We are looking at converting it into office and residential spaces and bringing in retail at ground level,” says Chapman. “I see new mixed-use developments in inner cities across SA that feature residential units, retail spaces, commercial nodes, coffee shops and other facilities. It makes sense in inner cities.”

How we deal with urbanisation will be key, says Pienaar. It is the way we can create sustainable cities that are inclusive and meet people’s needs.

HOMEFRONT SECTIONAL TITLE

Pets: the rules Specialist sectional title attorney and director at BBM LAW Marina Constas says it is important to know the ins and outs of keeping animals in flats PHOTOS: ISTOCK

I

t is no surprise that the keeping of animals is the first conduct rule in the Sectional Titles Schemes Management Act. This is justified by the number of pet-related disputes in the industry and the time, energy and legal fees that owners and body corporates are prepared to spend fighting cases involving either keeping or removing a pet.

If you live in a sectional title scheme you will have to abide by certain rules along with those set out in the act.

If your sectional title scheme falls under the new Annexure 2 Model Conduct Rules, owners or occupiers must have trustees’ written permission to keep a pet.

Trustees are not allowed to unreasonably withhold consent, which means they need to consider the best interests of the scheme compared with the interests of the prospective pet owner.

“Trustees’ consent is considered a given should any owner require a guide dog, hearing dog or assistance dog”

Should a quiet bulldog be removed from his 11-year-old companion, for example, if the child’s parents provided a psychiatrist’s report stating that the dog helped the child deal with anxiety?

Or consider the case of an elderly Great Dane, whose owners assured the trustees hardly moved during the day and had forgotten how to bark. These are the type of issues with which trustees must grapple.

CONDITIONS If trustees decide to allow a pet into the scheme, they can impose conditions such as walking dogs on a leash or enforcing the use of a poop scoops. The trustees can withdraw their permission should any conditions be breached.

Trustees’ consent is considered a given should any owner require a guide dog, hearing dog or assistance dog.

Interestingly, there has

been an increase in diabetic alert dogs — pets trained to warn their diabetic owners of low or high blood sugar levels.

OBLIGATION Once you have permission, make sure you understand your reciprocal obligation.

The act stipulates that pets should not cause any inconvenience to other owners. If an owner breaches the rules and the act by either keeping a pet without permission or allowing their pet to be a nuisance to others, the body corporate can obtain a court interdict, enter private arbitration or refer the dispute to the Community Schemes Ombud Service.

If owners want a petfree complex, it is perfectly possible to draft a no-pets clause, provided threequarters of those present at a quorum vote for the rule amendment.

It's that feeling that no matter where you go from here, you know, deep down; it doesn't get better.

One on Whiteley is THE ONE when it comes to living, shopping, dining, playing and working in the lifestyle capital of Johannesburg, Melrose Arch.

With new 1-bedroom units available from R2 million, One on Whiteley is the perfect match for the first-time buyer or avid investor.

On show: Weekdays 8am-5pm, Saturdays 10am-2pm and Sundays 2pm-5pm.

Pam Golding Properties - Melrose Arch, 16 The High Street.

For more information: Victoria Russell: C: 074 683 1222 | E: victoria.russell@pamgolding.co.za Peet Strauss: C: 083 675 1212 | E: peet.strauss@pamgolding.co.za Tersia Taljaard: C: 063 695 7571 | E: tersiat@amdec.co.za

HOMEFRONT PROPERTY NEWS

Bedfordview home sells for record R30m

B

uyers in the luxury housing segment are finding impressive value in Bedfordview, Johannesburg — Pam Golding Properties recently sold a residential property there for a record R30m.

The five-bedroom, fivebathroom house plus a one-bedroom, one-bathroom cottage, and staff quarters, is set on a 1,766m2 erf.

“This is the highest price achieved for a residential property in Bedfordview, exceeding the suburb’s previous top price of R28.5m

The 10 wealthiest cities in Africa

A

frAsia Bank and New World Wealth recently reviewed the 10 wealthiest cities in Africa by total wealth.

“Total wealth” refers to the private wealth held by individuals in each city. It includes property, cash, equities and business interests, less any liabilities.

“Billionaires” are people with wealth of $1bn or more.

The top 10 cities:

two billionaires. Major sectors include real estate, financial services, retail and tourism. Cape Town is also a second-home hotspot with more than 1,500 multimillionaires living in the city during peak holiday months (many from outside SA).

4. Lagos: Total wealth held of $120bn. Home to 6,800 millionaires, 360 multimillionaires and four billionaires. Major 1. Johannesburg: sectors include real Total wealth held estate and construction, of $245bn. Home to telecoms, transport, 18,200 millionaires, 970 financial services and multimillionaires and two basic materials. billionaires. Major sectors

include financial services, professional services, 5. Nairobi: Total wealth construction and telecoms. held of $55bn. Home to

6,800 millionaires and 280 multimillionaires.

2. Cairo: Total wealth Major sectors include held of $140bn. Home to financial services, real 8,900 millionaires, estate and construction, 480 multimillionaires and retail, tourism, fast-moving five billionaires. consumer goods, telecoms Major sectors include real and basic materials. estate and construction,

financial services and basic materials.

6. Luanda: Total wealth

held of $48bn. Home to 3. Cape Town: Total wealth 4,100 millionaires, 240 multimillionaires and one held of $135bn. Home to billionaire. Major sectors 8,200 millionaires, 440 include real estate and multimillionaires and

set in 2016,” says Nelson Ferreira, Pam Golding Properties area principal. “On the East Rand, this arguably ranks among the most expensive properties sold.”

Ferreira says Bedfordview’s proximity to major highways, Sandton, OR Tambo International Airport and some of the region’s best schools make it an attractive residential proposition.

It is also close to major shopping centres and good restaurants, where people go to shop, socialise and

conduct business.

The suburb is a soughtafter location among larger companies, which have plants in nearby commercial nodes.

These firms seek top-end rentals s for their executives, says Ferreira.

He says homes cover a broad price range, usually from R4m to about R25m.

“Among recent sales concluded is a home which fetched R15.5m and we are currently negotiating a further transaction in a similar price bracket.”

Work starts on R600m Exxaro HQ in Centurion

construction, transport, and oil and gas.

7. Durban: Total wealth held of $46bn. Home to 3,200 millionaires, 130 multimillionaires and one billionaire. Major sectors include real estate, finance, healthcare, construction, retail and transport.

8. Pretoria: Total wealth held of $42bn. Home to 2,600 millionaires and 110 multimillionaires. Major sectors include basic materials, manufacturing and financial services.

9. Casablanca: Total wealth held of $40bn. Home to 2,300 millionaires, 110 multimillionaires and two billionaires. Major sectors include basic materials, manufacturing and financial services.

10. Accra: Total wealth held of $35bn. Home to 2,300 millionaires and 100 multimillionaires.

Major sectors include basic materials, manufacturing and financial services.

Source: New World Wealth

G

rowthpoint Properties has begun the R600m development of a new head office in Centurion for Exxaro, one of the largest South African diversified resources companies.

It is the second phase of the redevelopment of the West Street, Lakeside office site, directly opposite the Centurion Gautrain station. The new headquarters will consolidate Exxaro’s present offices in Pretoria and Johannesburg into a single workspace.

Construction on the innovative green building,

integrating P-grade aesthetics and finishes, will begin in September. The 18,500m2 of lettable area will be ready for long-lease occupation in early 2019.

Designed by AMA Architects, the structure will flow with a series of layered, curved forms in flushed glaze detail. The triple-volume entrance and reception area will open on to an atrium that soars through the core of five floors of workspace. The workspace sits atop four storeys of basement parking, providing dedicated bays for fuel-efficient vehicles, as well as bicycle racks.

The building will incorporate environmentally sustainable initiatives including zoned lighting, energy-efficient building services and systems, waterefficient fixtures, rainwater harvesting for use in toilets and landscape irrigation, water-wise landscaping and low volatile organic compound finishes to ensure high-quality indoor air.

The glazed façade will let in generous natural light, shielding sun penetration and thereby helping to keep the interior cool. Balconies and a roof terrace giving 360º views will provide a connection to the outdoors.

Digital rental platform HouseME hits Gauteng

D

igital rental management platform HouseME, which says it has “taken the residential property market by storm” since its launch in the Western Cape in September 2016, began operating in Gauteng last month.

The company has also introduced three property management packages

on which landlords can use rental services in an on-demand pricing model, paying only for services they need.

HouseME says its 2.5% property management fee has attracted close to 150 rental properties, with more than 80 marketed across the country. It is larger than many traditional agency

franchises and says it has realised a 31% month-onmonth growth in the number of properties on its books.

HouseME CEO Ben Shaw says of the launch into Gauteng: “We maintained that we’d only extend our business beyond the Western Cape once we’d proved the success of our platform.”

He says the transparency and efficiencies realised through the platform allows “Uberised” on-demand services to be available to landlords at a fraction of traditional fees.

“In Cape Town, every single landlord offered these services has chosen them over the current alternatives, and we’re

expecting a similar response in Gauteng.”

There are more than 1,400 landlords and an equivalent number of tenants registered on the HouseME platform.

Before the Gauteng launch, HouseME had registered in excess of 300 landlords in Randburg, Sandton and Midrand, with a further 100

on a waiting list for the new offering of management suites.

Two Gauteng offices have been set up in Sandton and Braamfontein.

Says Shaw: “We believe HouseME might one day be seen as an example of how Africa can produce world-class business technology from within.”

PRETORIA EAST

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O T Y E S M D A L O I H U B BUY M A AND DRE Stand: R589 000 up to R650 000 Building: R1 225 000

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FAR = 120% of stand size Stand: R589 000 up to R650 000 Building: From R1 100 000 WERNER EKSTEEN

RE/MAX Jowic - Team Werner Eksteen

082 411 3089

082 577 4531 (Office) werner@wernereksteen.com

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Come and view our luxury apartment 12029.

Available daily for viewings WARREN BECKER 082 302 3004 | warren@thehoughton.com ALAN BECKER 082 718 8100 | alan@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12029