Business Day Home Front 15 July 2016

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HOMEFRONTFRIDAY, JULY 15 2016

BASALT BRINGS A NEW TASTE TO PARKHURST

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CUT COSTS ON INSURANCE AT YOUR PERIL

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LURE OF FAMILY FRIENDLY NEW ZEALAND

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LOOKING FOR A CAPITAL GAINS TAX GAP

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Trend to move south pushes up pricesThe search for a better lifestyle is driving semigration to the Western Cape. There is no doubt the natural beauty, safety and security, and good schooling are lures, but the surge is having a knock-on effect on the price of property

CONTINUED ON PAGE 6

WORDS: ANNE SCHAUFFER :: PHOTO: ISTOCK

LIFESTYLE Friday July 15 2016

Beauty laboratory

“You are living, so you might as well do it beautifully”

Basalt, a new homeware and gift store in Joburg’s Parkhurst, is a standalone platform for an exclusive homegrown range WORDS: GRAHAM WOOD :: PHOTOS: SUPPLIED

It further creates an ambience of a different age or place, and combined with the black steel shelves and fittings, enriched with the visual and tactile qualities of marble and brass, the atmosphere is distinctive and otherworldly.

“Paint can change a whole atmosphere and mood,” says Erasmus. It communicates a sense that what lies inside the shop are rare discoveries, and that when you cross the threshold back to the street, that you’ve been somewhere unusual and almost mystical. It turns shopping into adventure and discovery.

from dried mushrooms Erasmus forages from the forests in and around Cape Town, a pinch of which enriches soups and stews.

“The concept of the flavour library was born from the idea of taking what you taste home,” he says.

He has pushed it further, blending all sorts of flavours and scents, bottling them with names such as After the Rain and Paradise Found.

Each bottle is an artwork in the medium of scent and flavour. They make excellent gifts with a difference, and certainly add something new and unusual to the Parkhurst strip.

THE POWER OF COLOURMany retail spaces follow the principle of the white cube, derived from the idea of shop as gallery: a well-lit but neutral backdrop for the display of products.

Erasmus was also inspired by the gallery principle, but in a rather different way. He painted the walls and ceiling of Basalt a painstakingly developed oxblood terra cotta he calls sang de boeuf.

“I fell in love with this colour,” he says. He encountered it in the Louvre in Paris, and noticed how it enhanced the display of art and sculpture. “It’s kind to the eye.” It translates well into the shop’s interior because it creates calm and minimises distraction. “Consumers are already so bombarded, we try to focus on the product,” he adds. “It’s amazing what a colour can do for a shape.”

Chef Jacques Erasmus is perhaps best known for his restaurant,

Hemelhuijs, on Waterkant Street in Cape Town. Hemelhuijs is known as much for its food as its décor, and then almost as much for the beautiful, ever-evolving range of custom-made crockery and homeware that Erasmus has developed in collaboration with various local ceramicists, most notably Noeleen Reed and ceramic artist and painter Ella Lou O’Meara.

Now Erasmus has opened a standalone store on Fourth Avenue in Parkhurst, Johannesburg, primarily for his homeware offering. He found that Joburgers visiting Hemelhuijs often wanted to take items from the home collection with them. “I did the sums and it made sense to open a space in Johannesburg,” he says. Parkhurst suited the shop’s concept because, as he puts it: “Each shop has its own identity.”

WHAT’S IN A NAMEThe store is named Basalt after the original range of crockery and homeware Erasmus created for Hemelhuijs. That range, in a distinctively rich, iron oxide-

and manganese-tinted matt black, was inspired by the legendary 18th century black stoneware by Wedgewood in the UK, in turn named after the black volcanic rock.

The new shop includes other ceramics ranges, including Boerendelft and the Gold Collection, but Basalt is full of unique finds. Erasmus says the concept for Basalt is “just beautiful things” — everyday objects that embody an idea of beauty and quality, but most particularly a rare and handmade character. “You are living, so you might as well do it beautifully,” he says, a sentiment that has become something of a motto for Erasmus.

The shop includes a range of smaller gift items, including napery, biscuits, jellies and preserves, which are handmade in small batches, mostly from ingredients sourced from the restaurant’s country garden in Montagu.

WALL OF TASTEThe art of Basalt catches the eye, but the space is dominated by a rather more abstract concept — a floor-to-ceiling steel shelf filled with old-fashioned, brown, glass-stoppered laboratory bottles.

This is the flavour library: a range of handmade blended spices and flavour compounds developed by Erasmus.

At its most accessible, it includes a braai spice and various exotic salts, including black salt. A rich mushroom compound is a powder made

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ADVERTISING SALESMichèle Jones [email protected] 084 246 8105Susan Erwee [email protected] 083 556 9848Yvonne Botha [email protected] 082 563 6685

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A PUBLICATION

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INSURANCE Friday July 15 2016

Costly cuts

In times of economic pressure and spiralling household costs, many

consumers and homeowners look to reduce their insurance cover in an attempt to lower their monthly expenditure. This can prove a costly cost-cutting measure, caution experts, who warn that the dangers of underinsurance loom large.

Attie Blaauw, Santam’s head of personal lines underwriting, says: “Claims statistics indicate that one out of three homes in SA is underinsured by about 30%. In terms of the insurance contract, underinsurance means that a client will only receive partial compensation after submitting an insurance claim.” Underinsured losses from the likes of everything

from burst geysers to broken TVs and damaged appliances can put a spanner in the works, but the real concern is that often major assets such as homes themselves may not be properly covered.

LIFE HAPPENSWith severe flooding, fires and hailstorms across many parts of SA over the past few years, there are potential weather and other risks against which we need to protect our homes and ourselves. “Although it may be very tempting to try to save on your household contents insurance premiums during times of financial difficulty, this is probably the last place you should be looking to cut corners,” says Willem Smith, MD of

Hollard Insurance, personal lines. “Insurance is designed to protect you when things don’t turn out the way you would have chosen, when misfortunes occur, basically when ‘life happens’. With 328,074 property-related crimes committed during 2015, according to Crime Stats SA, you need to ask yourself whether or not you should really be taking a chance,” he says.

RULES OF AVERAGEThe old saying “you get what you pay for” is especially true of household insurance because of a concept called “average”. In the event of a fire or flood, you will most likely have to replace all your household contents and possibly even the entire structure. “If you are underinsured, for example if your household contents are insured for R100,000 but the replacement value is R150,000, then at claim stage your insurer will apply the principle of average,” says Smith.

“Basically, an insurer can reduce its liability for a claim by applying a proportionate approach. Using the above example, and assuming you experience a claim event and suffer losses totalling R60,000, the sum to be paid out will be calculated as follows: sum insured (R100,000) divided by true value at risk (R150,000) multiplied by the claim amount (R60,000). This will result in 67% of your claim (or R40,000) being paid out. You would then suffer a R20,000 knock to your back pocket,” warns Smith.

There are three things to consider.

HOUSEHOLD CONTENT INSURANCEUnderinsurance: The value of the goods insured should equal what it would cost to replace them today (the replacement value), not the original purchase price. With a weakened rand, homeowners should also take care to ensure that imported possessions are correctly insured. “Often we find that goods stay insured for the original value — for example, a TV bought 10 years ago would be insured for R6,000. But to replace the TV would cost R20,000 today,” says Blaauw.

Home security: Most insurers have minimum standards relating to home security. These normally relate to the risk of burglary in a specific

WORDS: KIRSTEN HILL :: PHOTOS: ISTOCK

“Claims statistics indicate that one out of three homes in SA is underinsured by about 30%”Attie Blaauw, head of personal lines underwriting, Santam

“With 328,074 property-related crimes committed during 2015, according to Crime Stats SA, you need to ask yourself whether or not you should really be taking a chance”Willem Smith, MD, Hollard Insurance, personal lines

Lowering your insurance premiums to reduce household expenses in times of financial hardship could leave you underinsured — and bring even greater hardship

geographical area. Policy conditions demand a high level of transparency when it comes to security. “The insurer normally requires you to disclose if there is an active alarm, burglar bars or security gates, and will decide to either provide cover or not based on the information provided. It is critical to ensure that the information stated on your policy is in fact the reality,” says Blaauw. “Improvements to security may also lead to reduced premiums, so it’s important to inform your insurer of any changes.”

Insured perils (or types of incidents): There are some types of incidents, for example flooding, that may not be covered by a short-term insurer. These are normally not covered when they are nearly 100% likely to occur. Houses built on the banks of rivers that flood annually will not be covered at all by a short-term insurer, or very high excesses may be imposed. It is sometimes worth knowing this about a property before buying.

Smaller items: “People are generally conscious of larger items such as fridges and TVs, but it is important to make sure that the smaller, generally portable items, such as clothes, cellphones and expensive handbags, are also covered.

“The smaller items may seem insignificant individually, but the sum of all of them can be substantial,” says Smith. “Items like carpets and paintings are also often overlooked, but should be included for comprehensive cover.”

BUILDING INSURANCEPoor workmanship and insured perils: Make sure you do not find your house is not covered as a result of either fundamental structural issues or it being a “high risk insured peril” such as being in a flood zone. Get an expert or assessor to look at the property properly and advise you if there will be any issues with insuring it.

MOVING INSURANCEThere is always an element of risk when household contents are being moved. A reputable mover should be able to provide some kind of insurance during the move, but will not cover everything in its entirety. Contact your insurance company before the move to check what it will cover while the household goods are transported.

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Bedrooms 3/4 / Bathrooms 4 / Garages 4 / Spectacular mountain views. This American Georgian gem is conveniently situated in a sought-after close in prime Hen-and-Chicken and offers full family accommodation and spacious proportions throughout. One is struck by the acute attention to detail displayed in this exceptional designer home that offers elegant, yet casual living with superb indoor/outdoor flow.

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W E S T E R N C A P E

SEMIGRATION Friday July 15 2016

Trend to move south pushes up prices

upcountry buyers.”Some semigrators

move lock stock and barrel; others make their Cape holiday destination permanent homes, and some breadwinners commit to the weekly commute. With Lanseria adding to the airport offering in Johannesburg — plus the Gautrain — commuters settle the family in the Cape and either work fulltime in Johannesburg Monday to Friday, or access it whenever necessary. Sophisticated communication and easy transport links have made semigration an achievable reality.

There is no arguing the beauty of Cape Town — compounded by the fact that the metro is deemed highly functional. For the national and international investor, it has been the jewel in the South African property crown.

Seeff chairman Samuel Seeff says: “The Cape lifestyle is obviously very appealing, but more so that it is seen as well managed by the DA. The city and surrounds are clean, and there’s good governance. The fact that it not only attracts people to the metro, but that property buyers are prepared to pay more for property here, illustrates that property buyers/people want to live in a clean and well managed area.

“As many as one in five buyers across the Cape metro — 20%-30% depending on area — emanate from outside the city, most from the north (especially Gauteng — Johannesburg

The somewhat tongue-in-cheek word semigration, for South

Africans, was dreamed up to describe the migration of those do not want to, or are financially unable to, leave their extraordinarily beautiful homeland but who want to move to a place within the borders that offers a better lifestyle.

That better lifestyle may be a reference to improved schooling, a sense of security, a more cosmopolitan, even international flavour, a country setting, political stability, a cleaner environment, or all of the above. For the past few years, semigration has been the descriptive term for those who move south — to the Cape and environs — and it has spawned some wry commentary and jokes of secession. Bluntly, the Western Cape is almost

“A healthy economic growth rate and perceptions of a high-quality lifestyle offered by the city of Cape Town and its surrounds appear to be attracting both wealth and skills to the province”Andrew Golding, CEO, Pam Golding Properties

considered another country — yet not.

When semigration was first integrated into the local lingo, the move Capewards appeared driven by retirees. Areas such as Somerset West became a retirement paradise. Although it is still a trend, it is no longer the driver for semigration. The current cost of property alone may be the wet blanket for cash-strapped retirees. In recent years it has been young families who, instead of cutting ties and building a life for their children in another country, fly south. Schooling and tertiary education is superb, lifestyle is outstanding, landscape glorious and, generally, tomorrow is more predictable.

GAUTENG ARRIVALSIt is largely those from Gauteng who are arriving, injecting massive funds into the Cape property market, and everybody has been reaping the financial rewards. In a Moneyweb article on emigration/semigration, Magnus Heystek, investment strategist for Brenthurst Wealth, pointed to the latest FNB property barometer: “During the first quarter of 2016, the Western Cape house price index rose 12% year on year, compared to the Eastern Cape, which increased by 7.6%, KwaZulu-Natal by 5.6% and Gauteng by 3%. This increase can be attributed to the rising demand for property in the Western Cape, driven by the increasing rate of semigration among

PHOTOS: NOVOS GROUP AND ISTOCK

CONTINUED FROM PAGE 1

Friday July 15 2016 SEMIGRATION

and Pretoria), but even from Durban. It’s not just the Cape metro, but areas as far afield as the winelands — mostly Stellenbosch and Franschhoek, but also Paarl (and the Garden Route, especially George) — that are seeing an influx of buyers from other provinces boosting activity.

HIGHER DEMANDThis is, in part, why the Western Cape property market continues to perform better than, say, Gauteng from a price and even demand point of view when you look at percentages. Prices in the Cape are surging ahead of other metros, again especially those of Johannesburg’s northern suburbs. In top-end areas such as the Atlantic Seaboard (Clifton, Bantry Bay, Fresnaye, Camps Bay and Waterfront), top-end properties can sell for 30%-40% more compared to the top-end Johannesburg/Sandton areas of Sandhurst, Westcliff, Dunkeld, Morningside and Bryanston.”

Schalk van der Merwe, Rawson Property Group’s franchisee for Somerset West, says semigration is no sudden flash-in-the-pan. “It is an ongoing phenomenon that has been evident for some time and one which is giving a huge boost to Cape property. Last year, a

staggering 46% of the homes sold by our franchise were to upcountry buyers, and discussions with our George and Knysna franchisees confirm similar numbers of buyers coming to them from the north.”

Stephen Lubbe, Rawson’s George franchisee, concurs: “Semigration into George from around the country is now conservatively estimated to be about 50 families per month — significant enough numbers to be having a real effect on the property market. New construction is also speeding up, with developments like Kraaibosch Country Estate, Kraaibosch Manner and Blue Mountain Lifestyle Estate growing at pace.”

Andrew Golding, CEO of Pam Golding Properties, says: “It’s obvious that Cape Town’s coastline and mountains act as a major constraint on the city’s ability to expand, which goes some way towards explaining the outperformance of the Cape housing market.”

He adds: “Another contributing factor appears to be the net in-migration of homeowners from other provinces. According to FNB analysis, the percentage of repeat buyers moving between provinces has risen from just 6.4% during the 2008-09 recession to a high of 12.9% last year.

“Typically periods of strong economic growth generate an increase in inter-regional migration as people move to areas experiencing greater economic activity and generating employment opportunities,” he says.

GROWTH RATE“With the national economy entering its fifth consecutive year of stagnant growth, one would have anticipated that this mobility would be slowing, and yet the FNB study suggests that it remains relatively high. This, it is argued, is due to a structural change which has taken place in recent years, which has seen the Cape greatly enhancing its relative appeal,” Golding says.

“A healthy economic growth rate and perceptions of a high-quality lifestyle offered by the city of Cape Town and its surrounds appear to be attracting both wealth and skills to the province. As a result, the Western Cape has the lowest percentage of repeat buyers leaving the province as well as by far the strongest net inward migration of repeat buyers from other provinces.”

Semigration to the Cape is a reality and it will be interesting to see how this trend plays itself out in the light of current local and global variables.

“Semigration is an ongoing phenomenon that has been evident for some time and one which is giving a huge boost to Cape property”Schalk van der Merwe, Somerset West franchisee, Rawson Property Group

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The living spaces offer an easy fl owing, contemporary type lifestyle, with some of the most refi ned, high quality fi nishes and appliances one could wish for. If it’s simple, uncluttered living you after, then this home is a must see! All 3 bedrooms are spacious and offer luxurious en-suite bathrooms, with the main bedroom commanding stunning elevated sea views and panoramic vistas of our magnifi cent estate.

Looking for the perfect home away from home? Look along KwaZulu-Natal’s Dolphin Coast for unique estate living. Brettenwood Coastal Estate is made up of 180-degree Indian Ocean view luxury apartments and freestanding houses and villas surrounded by lush, indigenous forest. Constructed in harmony with the existing environment, incorporating the natural landscape wherever possible, Brettenwood Coastal Estate offers residents full access to an array of exceptional facilities.

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3 Spacious bedrooms all en-suite | Open plan living ,kitchen with scullery | Elevated Sea and Dam views | Water harvesting system |

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16 Malachite is known for its bold presence, grandeur and style and is one of the most iconic architectural masterpieces on Brettenwood Coastal Estate. The proud owner, who conceptualized this home, admits it is the result of divine inspiration and countless hours of thought and consideration. Boasting an impressive three levels and 450 sqm of fl oor space, this home appeals to the discerning individual, looking for an incredible lifestyle as well as a great investment.

The living spaces offer an easy fl owing, contemporary type lifestyle, with some of the most refi ned, high quality fi nishes and appliances one could wish for. If it’s simple, uncluttered living you after, then this home is a must see! All 3 bedrooms are spacious and offer luxurious en-suite bathrooms, with the main bedroom commanding stunning elevated sea views and panoramic vistas of our magnifi cent estate.

Looking for the perfect home away from home? Look along KwaZulu-Natal’s Dolphin Coast for unique estate living. Brettenwood Coastal Estate is made up of 180-degree Indian Ocean view luxury apartments and freestanding houses and villas surrounded by lush, indigenous forest. Constructed in harmony with the existing environment, incorporating the natural landscape wherever possible, Brettenwood Coastal Estate offers residents full access to an array of exceptional facilities.


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2016

INVESTIGATION Friday July 15 2016

Cut your CGT bill on a property sale

Capital gains tax for companies has increased by nearly 50% since 2001. For this reason,

it’s important to consider ways to reduce the bill on the sale of

commercial property

WORDS: GEORGINA GUEDES :: PHOTOS: ISTOCK

costs of constructing and refurbishing the buildings. All the small amounts add up over time.

3. SELL SHARES AND CLAIMSConsider the following case: You formed a company to acquire commercial property. The company paid R1m to buy the property.

If you are planning to buy a commercial property as an investment, the

way in which you own the property will have significant implications for capital gains tax (CGT).

Ben Strauss, director of tax and commercial practices at law firm Cliffe Dekker Hofmeyr, explains that there are three ways in which a commercial property can be owned — in the buyer’s own name, in a company’s name, or by a trust.

“If you have bought it as an investment for the next generation of your family, it is better to own it as part of a trust, because that will reduce the estate duty when you die,” he says. “However, if you intend disposing of the property in the short to medium term, it is more tax efficient to hold the property in your own name. This is because when you sell the property, the capital gains tax rate is lower for a natural person than for a company or a trust.”

The effective rate of CGT has increased in

Friday July 15 2016 INVESTIGATION

“If you have bought property as an investment for the next generation, it is better to own it as part of a trust, because that will reduce the estate duty when you die”Ben Strauss, director of tax and commercial practices, Cliffe Dekker Hofmeyr

recent years. When it was introduced in 2001, the effective rate for companies was 15%. It is now 22.4%, which means that since 2001, the rate has increased by nearly 50%. It currently stands at 16.4% for individuals and 34% for trusts.

At the same time, Strauss points out that when a company distributes a profit after tax to its shareholders, they are taxed again in the form of dividends tax at a rate of 15% (unless they qualify for an exemption or reduced rate).

“So when a company realises capital profit and distributes the profit to the shareholders, the effective tax rate is 34.04%. In other words, more than one third of the profit goes to the taxman,” he says.

For these reasons, it has become more important than ever for taxpayers to reduce their tax bill on immovable property. Bearing this in mind, Strauss outlines three ways in which it’s possible to save on capital gains tax:

CGT IN COMPANY:Proceeds R 5,000,000Base cost – R 1,000,000Capital gain R 4,000,000

CGT at 22.4% effective rate on capital gain R 896,000

AMOUNT POCKETED:Proceeds R 5,000,000Loan – R 1,000,000CGT – R 896,000Net profit after CGT available for distribution R 3,104,000Dividends tax at 15% – R 465,600Net distribution received R 2,638,400Repayment of loan R 1,000,000Net amount pocketed R 3,638,400

However, if you sold the shares and loan in the company for R5m you would realise R4,344,164 determined as follows:

CGT ON SALE OF LOAN:Proceeds attributed to loan R 1,000,000Base cost – R 1,000,000Capital gain R 0CGT at 16.4% effective rate on capital gain R 0

CGT ON SALE OF SHARES:

Proceeds attributed to shares R 4,000,000Base cost – R 1,000Capital gain R 3,999,000CGT at 16.4% effective rate on capital gain R 655,836

AMOUNT POCKETED:

Proceeds R 5,000,000CGT – R 655,836Net amount pocketed R 4,344,164

In other words, in the case where you sell the shares and loan in the company, as opposed to the case where the company sells the property and distributes the profit to you, you will pocket R705,764 more.

WEIGH THE PROS AND CONSWhile it is obvious that there are tax benefits to be achieved by owning property as a natural person rather than a company or trust, CGT is not the only factor.

As with any tax issue, Strauss says it is important to weigh up all the pros and cons, including the term and the purpose of the investment, before making a decision on ownership.

1. HOLD THE PROPERTY IN YOUR OWN NAMESince individuals pay a maximum effective CGT rate of 16.4% and dividends tax does not apply, if you hold the property in your own name you will pay less than half the tax you would pay if you held shares in a company that owned the property.

Of course, you should not only take into account the realities of CGT and dividends tax when deciding whether to hold property in your own name. For example, if you hold commercial property in your own name and you let the property, depending on the amount of rental you generate, you may need to register and account for value-added tax (VAT).

Also, if you own the property yourself, you are personally liable for the debts relating to it. If you borrow money from a bank to finance the property and you default on repayment, the bank would also be able to attach your other assets — and not only the property — to satisfy its claim.

You could also hold the property in a trust, an effective vehicle to hold property from a tax and commercial perspective. However, there have been rumblings recently on the part of policy makers about the way trusts are taxed, so it is a good idea to exercise caution with these mechanisms.

2. KEEP ACCURATE RECORDS OF COSTSCGT is levied on the capital gain realised on the disposal of property. Put simply, it is levied on the difference between the proceeds when you sell the property, and the “base cost”.

The base cost is not just the price that you paid for the property, but also the costs incurred in improving and disposing of it.

For this reason, it is vital that any commercial property owner (and any property owner, actually) keeps an accurate record of every cost that the owner incurs in relation to the property — most notably, the

You lent that amount to the company. Many years later a person offers you R5m for the property. The share capital in the company is a nominal amount of R1,000.

If the company sells the property and distributes the net profit to you, you will put R3,638,400 in your pocket determined as follows:

FOCUS ON SITARI COUNTRY ESTATE Friday July 15 2016

Discover a life of luxury

The Cape’s award-winning Sitari Country Estate in Somerset West offers lifestyle,

convenience and luxury combined with excellent schooling and high-end security

EXTERIOR VIEW OF THE SHOW HOUSE

THE MAIN GATEHOUSE LUXURY APARTMENTS

Perfectly situated in Somerset West, Cape Town’s award-winning

Sitari Country Estate merges luxurious country living with modern-day conveniences. Offering 3,150 residential opportunities, Sitari is a development like no other.

Sitari features green open spaces, herb gardens, orchards, ponds and streams, offering tranquillity and immersion in nature for residents to enjoy. These are woven between the homes at Sitari and allow children to run wild, while parents can enjoy walks on the 14km bike path that stretches through the estate. The reinstatement of the second largest vlei in the Helderberg basin after Paardevlei — Sitari’s Zeekoevlei Wetland — will bring serenity and nature to residents’ doorsteps. It will be a haven for indigenous plants, birds and small amphibians, as well as form a key focal point. A central formal park spine runs all the way from the R102 down to the country clubhouse. In contrast to the numerous agricultural landscapes, this central park features smaller, more intimate spaces such as ponds, parterres, seasonal vegetable gardens, rose gardens, pergolas and tall hedges. This is a feature reminiscent of the prettier “fijntuin” of Cape homesteads of old.

The area is surrounded by the rolling hills of the Helderberg and Hottentots Holland mountain ranges, and is home to a beautiful array of fauna and flora, meaning that visits from rare South African creatures such as genets and black eagles can be a lovely surprise for Sitari residents.

HIGH-END SECURITYOne important aspect of a lifestyle estate is security and Sitari’s security system is of the highest standard. It features a main gatehouse complex at the entrance to

the estate that is 1,849m² in size. It houses the security control room, as well as sales, letting and homeowner management offices and office space, which is available for purchase. On-site security will be manned through the main gatehouse, with visitors being required to enter through either the main or secondary gatehouse, both of which will have biometric readers, number plate recognition and 24/7-staffed access control. Boundary walls on the outside of the estate will feature underdig protection, serrated strips, anticutting and anticlimbing protection, with electrics on top as well as Future Fibre Technology with heat-sensitive triggers. These, when triggered, will activate cameras, which will link back to the main control room. Security roaming vehicles will then be dispatched to the place of disturbance for inspection and action, where necessary. Each junction inside the estate will have four-way cameras connecting to the control room. Sitari Country Estate combines high-end security with first-rate technology to produce an unparalleled security offering.

Another important aspect of living in a first-rate estate such as Sitari is the education of one’s children. It is for precisely this reason that the fastest-growing independent school brand in SA, Curro, opened its doors at Sitari in 2016. As a leader of outstanding education facilities around SA, Curro strives to create the sustainability needed to ensure an ongoing level of excellence in the education of the leaders for our country’s future.

QUALITY FEATURESFive types of property options are available: Luxury and Premium Apartments, Village Homes, Country Homes and Country Plots. Each of Sitari’s homes is curated

with incredible attention to detail, from the ceilings, light fixtures and windows, to the bathroom taps, kitchen appliances and flooring. The inclusion of brands that embody luxury and passion for detail mean Sitari offers residents an exceptional home in every aspect. Purchasers also have the option to build their dream home on the Country Plots. Sitari’s home options cater to every family’s requirements — from young couples who are ready to move in, to families and investors alike.

Phase 3, consisting of a limited number of opportunities, is now selling.

Visit sitari.co.za for more information.

Friday July 15 2016 FOCUS ON SITARI COUNTRY ESTATE

GET IN TOUCHCall the on-site sales centre on 087 890 [email protected]

WHAT IT COSTS

Country Plots from R895,000-R1.8m

Exquisite Homes from R2.965m-R3.075m

LAUNCHING SOON

Premium Apartments from R815,000-R1.985m (estimate)

“Sitari features green open spaces, herb gardens, orchards, ponds and streams, offering tranquillity and immersion in nature for residents to enjoy”

SITARI’S GARDENS AND STREAMS

INTERIOR VIEW OF THE SHOW HOUSE COUNTRY LIVING THE COUNTRY CLUBHOUSE

SITARI’S WINDMILL

INTERNATIONAL NEWS Friday July 15 2016

Green and pleasant land

when modest numbers emigrated. By 2001, South Africans comprised the fifth largest migrant group in that country and by 2006 there were 41,676 expats living in New Zealand, the Integration of Immigrants Programme found. The five-year research programme ran from 2007 to 2012.

What is it about these small islands that lures South Africans and what should those who move there expect of their new life?

SAFE AND SECURECrime, or the lack of it, seems to be a main motivator for choosing New Zealand. Statistics released by the country’s authorities reveal that crime rates have been

In the grand scheme of things the land of the long white cloud may not be

the biggest country — it only measures about 1,600km in length and is roughly 400km wide — but it is also one of the world’s least populated. There are just under 4,7-million people in New Zealand, placing it at 127 out of 238 countries according to the CIA World Fact Book. The World Bank puts it at 17 people per square kilometre.

There are no recent statistics to indicate the number of South Africans living in New Zealand, but it is obvious from earlier surveys that the country is a popular option for those who emigrate. The love affair started during apartheid

dropping steadily since 2012 and, as with a lot of countries, most crime happens in larger cities. Overall, the country is regarded as being a safe place to live.

The education system is also held in high regard and qualifications are recognised internationally. Schooling can start the day the child turns five (interestingly, this means that a child does not have to start school at the beginning of an academic year) and is compulsory from six to 16.

SOARING PRICESHouse prices are, however, less attractive, particularly in the larger centres such as Auckland. In a report earlier this year in the New Zealand Herald, property editor Anne Gibson noted that Auckland’s housing affordability had worsened. According to the annual Demographia survey, it had risen from ninth place to become the fifth most expensive city in the world.

The survey found that with a median price of $748,700 (R7,9m) and a $77,500 median income, Auckland had a house price/wage multiple of 9.7.

Any more than three was classified as unaffordable by the report’s authors.

To give some idea of the sharp increase, Auckland house prices had risen by 68% since 2007, according to government agency Quotable Value, it was reported in the Otago Daily Times late last year. Much of the blame for the increases has been placed on foreign investment and steps have been taken to slow demand from this sector, including demanding higher

deposits from foreigners investing in the city. This category of property buyer also needs to provide a tax registration number from the New Zealand Inland Revenue Department.

At the end of 2015, the average price of a New Zealand property was $550,000, up 14% from the previous year, stuff.co.zn reported. Low interest rates, investment demand as well as a shortage of property are the reasons most often cited for this increase.

The cost of living is also quite high: in fact, according to statistics released by numbeo.com, the cost of living for homeowners is 3% higher than in the US, although consumer prices including rent in SA are 54.56% lower than in New Zealand.

CHILD FRIENDLYDespite any negatives, New Zealand is a great place to live and perhaps more importantly, a good place to raise children. In 2014, the Health Behaviour in School-aged Children found that the country was the best place to raise a family. It consistently performs well in other surveys which poll expats, including the 2015 HBSC Expat Explorer Survey, in which the country came second behind Singapore. Quality of life, healthcare and work/life balance all scored highly. Although other areas such as property, school quality and culture scored slightly lower, overall it appears that those who choose to live in New Zealand are happy with their lot.

Auckland:Cost of living

$85 – three-course restaurant meal for two

$8 – half-litre draught beer

$4.55 – cappuccino

$200 – monthly utilities (electricity, heating, water, rubbish) for 85m2 flat

$84 – internet (10Mbps, unlimited data, cable/ADSL)

$0.64 – one minute of prepaid mobile tariff local

Average monthly rental and purchase prices

$3,088 – monthly rent city centre three-bedroom flat

$2,330 – monthly rent outside city centre three-bedroom flat

$8,641 – city centre per m2

$6,270 – outside city centre per m2

4.93% – annual mortgage interest rate

$3,730 – average monthly disposable salary

Source: numbeo.com

WORDS: LEA JACOBS :: PHOTOS: ISTOCK

Those who live in New Zealand do not have much to complain about — there is room to roam and the education system is good. The downside is the price of property

“New Zealand consistently performs well in surveys which poll expats, including the 2015 HBSC Expat Explorer Survey, in which it came second behind Singapore. Quality of life, healthcare and work/life balance all scored highly”

FNB Estate Agent Survey points to weakening activity in residential market

Durban residential market posts growth

PROPERTY NEWS Friday July 15 2016

The FNB Estate Agent Survey has pointed to a “temporary” stalling

in the national housing market’s weakening demand and activity trend during the first quarter of 2016. This is perhaps reflected in a slightly improved house price growth rate in Q2, it says. However, during the second quarter, a resumption of weakening in demand and activity levels, as perceived by survey respondents, suggests that a return to slowing average house price growth could resume in the near term.

A key question asked of a sample of estate agents, mostly in metro areas, is about their perceptions of residential market activity in their areas, a subjective question on a scale of one to 10, with 10 being the

strongest level of activity.The Q2 2016 Residential

Activity Indicator declined to 5.77 from the previous quarter’s 6.39, and is almost a point lower than the 6.73 high of Q1 2015.

A seasonally adjusted activity rating examines the strength of the market excluding seasonal factors. According to this measure the activity rating also dropped in the second quarter of 2016, from 6.11 in the first quarter to 5.9.

However, the FNB Property Barometer report of July 4 found there was an acceleration in average national house price inflation in Q2 of this year. That increase has more to do with demand and activity levels in preceding periods. In Q1, while the non-seasonally-

“This virtual ‘treading of water’ in activity levels appears to have been brought about by a slight rise in demand during the first quarter, which respondents cite when estimating the average number of ‘serious viewers’ of show houses”

Durban is listed as one of the top-performing South African cities

in house prices, according to the recent Knight Frank Global Residential Cities Index. It placed 14th out of 165 cities, with property prices increasing by 11.6% on average between the fourth quarter of 2014 and the fourth quarter of 2015, making it one of the few areas in the country where housing prices have increased.

Ballito Junction egional mall is expanding from an existing

10,000m2 shopping centre to 80,000m2. Its anchor tenants will grow to six with the inclusion of Checkers, Woolworths, Edgars and Game to its existing anchors Pick n Pay and DisChem.

The centre is owned and developed by the consortium of Menlyn Maine Investment Holdings and Flanagan & Gerard Property Development & Investment.

Ballito Junction is located in the middle of an upper market residential area, in a high growth region. In recent years there has been a population boom in the burgeoning Ballito, with various safe and gated

RETROFIT YOUR HOME FOR SUSTAINABLE LIVING

With even a few minor amendments, property owners can create a greener and more environmentally sustainable space to live. It may include modifying walls, flooring, insulation and ceilings to innovate your residence, increasing comfort and sustainability. Saint-Gobain’s Stand 47 on Monaghan Farm, just north of Lanseria Airport, Johannesburg, is a case study in creating a home designed and engineered for eco-friendly living. The focus is on habitats and construction, providing building innovation and life-improvement products with a core focal point of minimising climate change through energy efficiency in the built environment. This kind of home includes products that result in a reduction of noise for audio comfort, improved air quality, increased savings in enegy costs, and thermal comfort in the form of indoor temperature performance. For your chance to win one of three modification upgrades from Saint-Gobain, enter online at upgrademyhome.co.za. The grand prize, worth R250,000, includes a web-based digital monitoring solution, with two additional “starter packs” valued at R15,000 and R2,500 respectively.

The city has become a major international tourist destination in recent years, having been recognised as one of the New7Wonders Cities in 2015. The growing tourism industry, combined with the construction of the Moses Mabidha Stadium, uShaka Marine World, the new Durban Waterfront development project, and efforts to clean up the CBD, have all contributed to making Durban an important economic complex

estates built in and around the town. Indications are that this is set to continue. The result is a massive demand for retail and recreational facilities from the permanent population, a driver behind the major redevelopment and expansion of Ballito Junction.

Carl Jankowitz, director at Menlyn Maine, says: “We wanted to position Ballito Junction for local residents and our assessment supports this strategy. Of course, with the area’s significant tourist appeal it will attract holiday makers too. This will be a bonus for Ballito Junction retailers, but the mall’s success won’t depend on tourist trade.”

— accounting for 15% of national output.

It is not surprising that property prices have increased recently. Terence Hogben, principal of Leapfrog Property Group, Durban Central, says: “We’re experiencing quite a buoyant property market with property pricing increasing significantly over the past two years, especially in areas such as Morningside, with its close proximity to excellent schools such as the Clifton Preparatory School.”

Ballito Junction to bring top shopping to North Coast

adjusted activity rating rose from the prior quarter, the downward trend of the seasonally adjusted activity rating virtually “temporarily” stalled at 6.11, almost unchanged from 6.12 in the final quarter of 2015.

This virtual “treading of water” in activity levels appears to have been brought about by a slight rise in demand during the first quarter, which respondents cite when estimating the average number of “serious viewers” of show houses. In the Q1 2016 survey, they estimated the average number of serious viewers per show house to have risen from 11.3 in the preceding quarter to 11.6; this was up from the 11.05 viewers for the corresponding quarter of 2015.

“This virtual ‘treading of water’ in activity levels appears to have been brought about by a slight rise in demand during the first quarter, which respondents cite when estimating the average number of ‘serious viewers’ of show houses”

adjusted activity rating rose from the prior quarter, the downward trend of the seasonally adjusted activity rating virtually “temporarily” stalled at 6.11, almost unchanged from 6.12 in the final quarter of 2015.

This virtual “treading of water” in activity levels appears to have been brought about by a slight rise in demand during the first quarter, which respondents cite when estimating the average number of “serious viewers” of show houses. In the Q1 2016 survey, they estimated the average number of serious viewers per show house to have risen from 11.3 in the preceding quarter to 11.6; this was up from the 11.05 viewers for the corresponding quarter of 2015.

To be part of the ultimate in luxury cosmopolitan living, please contact:

Peet Strauss 074 683 1222 • [email protected]

Victoria Russell 074 683 1222 • [email protected]

Tersia Taljaard 063 695 7571 • [email protected]

Office: 011 684 2995/6 • pamgolding.co.za/melrose-arch

One-on-Whiteley, the new residential phase of Melrose Arch, is the ultimate in luxury cosmopolitan living. When

you invest in an apartment at One-on-Whiteley, you are investing in a secure, convenient and vibrant lifestyle.

One-on-Whiteley provides an amazing opportunity to be part of the success and attraction that this unique

new urban quarter offers. By owning an apartment in One-on-Whiteley, you open the door to 21st century living.

On Show at the Pam Golding Office and Amdec Property Café - High Street, Melrose Arch.

Priced from R2.25 million. No Transfer Duty.

PEERLESS PEDIGREE.BY APPOINTMENT.

Alan BeckerCell : +27 (0)82 718 8100Email : [email protected]: w w w.thehoughton.co.za

Warren BeckerCell : +27 (0)82 302 3004Email : [email protected]: w w w.thehoughton.co.za

IMAGINE WHAT A R870 MILLION HOTEL CAN DO FOR YOUR LIFEST YLE,

AS WELL AS YOUR INVESTMENT.

Apartment Showroom, Unit 12423 , The Houghton on the 12th , 53 , 2 nd Avenue.



















COME SEE FOR YOURSELF WHAT LUXURY APARTMENT LIVING IS ALL ABOUT

OPPORTUNITIES SELLING FROM R4,2M· Apartments all bathroom en-suite

· Top Design and Finishes · Full amenities

























COME SEE FOR YOURSELF WHAT LUXURY APARTMENT LIVING IS ALL ABOUT

OPPORTUNITIES SELLING FROM R4,2M· Apartments all bathroom en-suite

· Top Design and Finishes · Full amenities

WESTERN CAPE

SPACE STYLE AND ELEGANCE

Experience breath taking views from this magnificentfamily home in prime Fresnaye position. Spaciousreception rooms ideal for entertaining and fabu-lous family living. 5 bedroom suites, study, sky bar,gym, playroom, double staff accommodation andtriple garaging. All set on a large erf with sparklingpool in a lush, private garden.

BEDROOMS: 5 BATHROOMS: 5

Glenn Goldberg 083 658 3427Stacey Janit 076 337 4888Sandra Scher 083 456 2737

Web Ref: 105172

GAUTENGMODERN MASTERPIECE

The theme is set with the large garden and shardsof sunlight streaming into this superbly crafted,modern cluster with breath-taking architecture.The story unfolds with stone cladding, travertinecomplementing the wonderfully proportionedreception areas. The upper level offers 4 gloriousbedrooms, with elements of wood, high ceilingsand views. Staff suite, superior security, 24hourguarded complex and prime position. Truly excep-tional!


Norma Robinson 082 554 7260011 656 0888

Web Ref: 106018

GAUTENGFIT FOR A KING.

Comfortably located in the centre of Irene on a2,503m² plot. Light, open and sunny. This proper-ty maintains the charm and character of a tradi-tional farm house whilst being modern Theupstairs bedrooms all en-suite full bathrooms withscenic views from their Juliet balconies. The pri-vate 112m² main bedroom includes an open planhis and hers bathroom, own private lounge andupstairs balconies to view the morning sunrise.The ground floor guest bedroom with its ownreception lounge is designed perfectly. Bespokecrafted dream kitchen, vanities and built in cup-boards commissioned from top local artisans witha separate laundry and scullery.


Liza Gillett 084 587 1878012 940 1219

Web Ref: 106021

BENMORE GARDENSR13.5 million

FRESNAYER35 million

IRENER10.5 million

Documents

Business Day Home Front 15 July 2016