{"id":808543,"date":"2025-01-25T07:00:00","date_gmt":"2025-01-25T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=808543"},"modified":"2025-01-24T18:22:57","modified_gmt":"2025-01-24T16:22:57","slug":"warning-for-anyone-looking-to-move-into-estates-and-complexes-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/808543\/warning-for-anyone-looking-to-move-into-estates-and-complexes-in-south-africa\/","title":{"rendered":"Warning for anyone looking to move into estates and complexes in South Africa"},"content":{"rendered":"\n

Many South Africans are looking to downsize their property, but for those looking at estates and complexes, property experts warn that the costs may be higher than what you are currently paying.<\/p>\n\n\n\n

According to Kim Woods, a franchisee at Tyson Properties in Durban, downsizing is no longer just for retirees or empty nesters. <\/p>\n\n\n\n

Downsizing has become popular for those who want to realise the benefit of their large property investment asset by pursuing other endeavours such as international holidays or creating a business. <\/p>\n\n\n\n

However, for others, it is a necessary evil due to the nation’s weak economic growth and the cost-of-living crisis. <\/p>\n\n\n\n

Woods warned that downsizing may not necessarily reduce household expenditure that much, even if it leads to savings on difficult and time-consuming maintenance of a larger property. <\/p>\n\n\n\n

\u201cEstates and sectional title properties respond to this because they offer amenities that can be tapped into with little to no effort.\u201d<\/p>\n\n\n\n

Estate living has become popular as a result, as many migrate to this lifestyle to enjoy the benefits of a live-work-play environment where all their needs are centralised and nearby. <\/p>\n\n\n\n

Estates also tend to offer high levels of security, nature and views, restaurants, shops, and even schools. <\/p>\n\n\n\n

\u201cBut these come at an additional non-optional fee, often considered as \u2018hidden\u2019 costs,\u201d said Woods.<\/p>\n\n\n\n

Woods said that this is where the red flags begin to flap. <\/p>\n\n\n\n

\u201cIf the downsizing choice is to sustain a comparable lifestyle to your current one on a large property, estate living may be more expensive.” <\/p>\n\n\n\n

“In some cases, the per sqm price of the estate unit, which has less space, may carry monthly costs<\/strong> that are unaffordable.”<\/p>\n\n\n\n

\u201cDownsizing to an estate may cost thousands of extra Rands per month, reflected in the levies and the rates.” <\/p>\n\n\n\n

“Especially if the estate is well-maintained and tailored for the discerning buyer. This is something downsizing buyers often forget to compare to their existing household budget.”<\/p>\n\n\n\n

Another often-forgotten aspect of downsizing is the costs associated with selling and buying, including agent commission, bond cancellation fees, transfer costs, and compliance certificates,<\/p>\n\n\n\n

This could put many in financial trouble, particularly if their existing home needs maintenance and repairs. <\/p>\n\n\n\n

Downsizing can also prove to be more costly for those who still have bonds on their existing properties. <\/p>\n\n\n\n

\u201cA smaller home might translate into bigger monthly home loan payment.”<\/p>\n\n\n\n

“When combined with a high monthly levy and rates that increase annually, can prove especially difficult to manage by those on a fixed income or facing retirement.\u201d<\/p>\n\n\n\n

Another major pitfall is that some may sign an Offer to Purchase before selling their existing property. <\/p>\n\n\n\n

\u201cMany sellers have been forced to drastically reduce the selling price when they are under pressure to sell within a specific timeframe.” <\/p>\n\n\n\n

“Relevant to this is that the current average time a property is on the market is 12 to 14 weeks, which is double the time it used to be just a handful of years ago.\u201d<\/p>\n\n\n

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Positive signs <\/h2>\n\n\n\n

Nevertheless, it is not all doom and gloom despite the hard shift that downsizing may introduce. <\/p>\n\n\n\n

\u201cThere will be a lifestyle change, but this can be positive.” <\/p>\n\n\n\n

\u201cIf insecure or uncertain whether it\u2019s the right decision to make, there is always the option to rent first.” <\/p>\n\n\n\n

“Similarly the existing home may be rented out which may be able to fund the new downsized lifestyle.” <\/p>\n\n\n\n

She added that downsizers should also not be discouraged by the negatives as careful planning can be very advantageous, with the lifestyle benefits outweighing the higher costs. <\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Although estates and complexes offer a host of lifestyle perks, buyers must make sure that they do the math when they downsize. <\/p>\n","protected":false},"author":95,"featured_media":785444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[16930],"class_list":["post-808543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-tyson-properties"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=808543"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808543\/revisions"}],"predecessor-version":[{"id":808576,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808543\/revisions\/808576"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/785444"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=808543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=808543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=808543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}