Is estate living right for you?

Estate living is rapidly becoming one of the most popular real estate trends in South Africa. With increasing crime rates and a growing emphasis on lifestyle, the demand for secure and quality living environments is on the rise.

According to the latest from Lightstone, while freehold remains the dominant property type, the market is changing with Sectional Schemes and both Freehold and Sectional Schemes within Estates growing their share of the market.

Source: Lightstone

Investment potential

Estate homes offer significant investment benefits. These properties often retain better value compared to other residential sectors and show steady year-on-year growth. Even during the economic downturn caused by the pandemic, the average selling prices of popular estates have consistently increased.

Key considerations for prospective buyers

With numerous estate options available, it’s important that prospective buyers do their homework and consider certain factors to ensure that they make the right investment and lifestyle choice.

Understanding estate living

Before committing to estate living, consider whether it aligns with your preferences. While security is a major advantage, estate living often comes with strict rules and regulations regarding architectural design, gardening, and guest parking. Ensure you are comfortable with these guidelines before signing any agreements.

Lifestyle requirements

Estates vary widely in their offerings. Some provide basic heightened security, while others feature amenities like clubhouses, restaurants, golf courses, sports facilities, and even schools. Additionally, the demographic composition of estates can differ, with some catering more to families and others to retirees or empty nesters.

Ensure the estate is conveniently located near your workplace, schools, shopping centers, healthcare facilities, and other essential services. If you don't mind commuting, make sure that the estate has easy access to the routes you will need to drive daily or that you can easily access public transport.

Visit the estate at different times to get a feel for the community culture and ensure it matches your lifestyle preferences.

New vs. established estates

When choosing between a new development and an established estate, consider the following:

• New developments: Offer fresh, new properties with minimal maintenance for the first few years. They may cost less due to the absence of transfer duty (VAT is applicable), and developers often include extras like built-in appliances or levy holidays. However, there may be waiting periods for completion and transfer, and early buyers might experience construction-related inconveniences.
• Established estates: Typically have developed infrastructures, mature gardens, and well-maintained communal spaces. There is minimal risk of ongoing construction disruptions.

It is also important to check the future development plans of the estate you are considering. Understand any future development plans within the estate that might affect your living environment, such as new construction projects or infrastructure changes. It would be best if you also investigated planned developments in the surrounding area that could impact property values or quality of life, such as commercial projects, new roads, or zoning changes.

Security considerations

Determine your desired level of security. Higher security often involves more day-to-day restrictions and complex systems, which can be challenging for some residents to manage.

Rules and regulations

Different estates have varying levels of strictness in their rules. Some may dictate specific gardening choices or other lifestyle aspects. It's crucial to review the regulations of each estate before making a decision.

Levies

Monthly levies can be a significant expense. Ensure you understand how levies are calculated, what they cover, and how they are spent. Generally, estates with better amenities and well-maintained communal areas have higher levies. When looking at homes within an estate, you need to add levies to your monthly costs to ensure you have enough room in your budget to comfortably afford your home loan repayment and levies if interest rates increase. 

Body Corporate/Home Owners Association

The Body Corporate or Home Owners Association is responsible for the maintenance and upkeep of public spaces within the estate. Their management impacts the overall look and feel of the estate and, consequently, your property's future value. Research the governing body's financial stability and management track record before committing to a purchase.

Here is a comprehensive look at everything you need to know about buying a home in a sectional title.