The popularity of gated communities \u2013 and especially estates \u2013 has grown steadily in South Africa, thanks to the added security that they offer homeowners.<\/p>\n
A recent poll conducted by BusinessTech shows that out of 4,000 respondents, approximately 1,500 live in a gated community, while 2,500 do not. The widespread switch to remote working from home in the past two years has further boosted home demand in these communities, said Gerhard Kotz\u00e9, MD of the RealNet estate agency group.<\/p>\n
“With many people realising that they can now spend whatever time they used to spend commuting to the office to make full use of their estate\u2019s facilities instead. Other families have also decided to move from their suburban homes to estates further away from the city centres, knowing that they and their children will still have everything they need right on their doorstep.”<\/p>\n
Property developers have also responded to the social and lifestyle changes of recent times, and are now not only creating new estates again but offering a wider range of property types within single estates, Kotz\u00e9 said.<\/p>\n
“However, the shift in demand has also exposed an urgent need for buyers to better understand the major differences between buying a home in an ordinary suburb and a home in a gated estate that is run by a Homeowners\u2019 Association (HOA) \u2013 the most important of which are that they will be required to pay a monthly levy and that that they will have to abide by the HOA\u2019s constitution, its rules and its ongoing decisions.”<\/p>\n
These levies and rules are different for every estate, despite the fact that most HOAs are Section 21 companies and broadly governed by the Companies Act, said Kotz\u00e9.<\/p>\n
He added that prospective buyers should ask the sellers\u2019 agent for copies of the following, and read them before signing any offer to purchase:<\/p>\n
\u201cIn addition, buyers should find out if the HOA has a reserve fund for long-term, planned maintenance as well as emergencies,” Kotz\u00e9 said. “This is very important because a failure to plan for predictable long-range expenses often mirrors a lack of ongoing maintenance, and that can lead to falling property values or spiralling expenses.”<\/p>\n
If you are contemplating a purchase in a new estate still under development, you should first check out the HOA\u2019s architectural guidelines and building and appearance rules, he said.<\/p>\n
“Many estates have minimum and maximum house size allowances, or a requirement that homes be built in a particular architectural style that may not be to your liking. Some estates also require that you build within a certain time after buying a stand.”<\/p>\n
“Those buying in a new estate should establish who will be responsible for security on the site once the first new owners have moved in \u2013 the developer or the fledgling HOA? Also, who will be responsible for repairing any damage to services such as internal roadways during the construction phase.”<\/p>\n