New city of Cape Town By Law now allows 3 houses on a single erf
New amendments to the Cape Town municipal By Laws now make it possible to have three dwellings on an erf zoned SR1; an erf on which originally only one dwelling was allowed. Legislation promulgated in December 2019 took effect on this matter from 3rd February 2020.
Rowan Alexander, Director of Alexander Swart Property, says previous legislation brought about a situation where ‘consent use’ for a second dwelling on a SR1 plot was changed to ‘additional right use’.
Last year Alexander commented that this meant the owner of a SR1 plot no longer had to get the council’s permission for a second dwelling. Where applicable, approved plans are needed for the additional dwelling and alterations to the existing building. The latest legislation now makes it possible for a third dwelling to be erected as an ‘additional right’.
Coronavirus in SA | What the expected impact is on property sales
The arrival of the Corona virus COVID-19 to South Africa’s shores, as confirmed cases escalate, will only add to SA’s stalled economy, say experts.
The economy shrank by 1.4% in the fourth quarter of 2019 – as consumers remain under pressure. This with an interest rate cut in January, with the possibility of a further rate cut in March (with a COVID-19 fallout to intensify this prospect) - as Moody’s is set to make a call on downgrading SA’s credit rating on 27th March.
"We expect the virus' impact on the residential property market to be relatively small when compared to its effect on other key sectors,” Andrew Amoils, Wealth Analyst for New World Wealth told Property24.
Is buying a repossessed home the bargain worth risking?
Bank repossessed properties are the result of borrowers defaulting on their home loan repayments to the extent that the home loan has to be terminated.
These sales are attractive and seen as good value as there are usually no transfer duties and home loans are more easily approved by banks for properties in possession.
However, these properties have often been neglected after a degree of financial mismanagement by the owner. But it does hold the opportunity to score a bargain that can be well-renovate and then resold.
What to do when your sectional title scheme goes bad
Residential sectional title schemes (ST) are currently the fastest growing property sector in South Africa, with changing lifestyles and affordability constraints prompting increasing numbers of home buyers and investors to opt for apartments and townhouses rather than freehold homes.
“Sadly, though, the number of sectional title schemes that are struggling to stay solvent is also rising rapidly, and owners in those schemes are at risk of losing their investments unless their trustees take swift action to remedy the situation,” says Andrew Schaefer, MD of national property management company Trafalgar.
Risk of under-recovered levies
ST schemes can get into financial difficulties for many reasons, the most common of which are the under-recovery of levies over a long period and the sudden receipt of a very large account for the actual rather than estimated consumption of municipal services such as electricity and water. Low emergency reserves and undetected overcharging by local authorities are also fairly common.