Is your home a prime investment property
“It could be, if your complex is in good hands”, says Gordon Shutte, Director of ANGOR Property Specialists, a full-line property company which manages over 100 complexes and homeowner’s associations and which also specialises in residential sales and rentals. “The management of a complex can greatly influence the value of a property.”
Correctly managed, the services in a complex can contribute towards making the property more desirable, which will ensure a higher return on your investment than a complex which gives a negative first impression. Beginning with the part played by the Managing Agent who ensures that the finances of the complex are correctly managed, through to the role of the security company and its guards, the refuse collectors, estate managers, garden contractors and the maintenance crew; all must operate at the highest level in order to maintain the complex as a prime investment opportunity.
The Managing Agent in particular, plays a vital role. As the financial administrators of a complex or association, it is their responsibility to ensure that the budgets are adequate, suppliers are tieously paid, levies collected, legal issues are dealt with and that the body corporate or homeowners association operates within the realms of the relevant laws. Furthermore, accurate and regular reporting to trustees is vital in order to keep communication channels open and to ensure issues are dealt with appropriately and in reasonable time frames.
“Most bodies corporate and homeowner associations are managed by a group of volunteer Trustees who rely on the expertise and experience of a professional Managing Agent to ensure that the finances of their complex are properly managed. Where body corporate funds are not properly managed, problems may occur. These could include homeowners having to face an unexpected and expensive ‘special levy’ to cover maintenance costs which were inadequately provided for in the budget.
At worst, they may even result in banking institutions refusing bonds over properties in the complex – making your investment a liability instead of an asset. conversely, a unit in an immaculate, well managed and financially strong complex will be in high demand.
“A number of the complex with we manage are considered to be prime investment properties,” says Gordon. “units in these complexes are enormously popular and command prices considerably higher than comparable units in the area. this holds true even through the breathing space that the property market is currently finding itself in.” “As an example,” Gordon added, “we manage a complex in Morning side which, over the past three years has seen tremendous growth in the value of the units.
Three years ago, a 49 square metre unit sold for R520 00 – an increase of approximately 44%. An 89 square metre unit which in 2005 sold at R890 000 has reached a price of R1 500 000 – an exceptional increase of more than 68%. Similar units in the area have only seen increases in the region of around 18 – 24%”.
“This kind of increase in value can only be achieved when all the factors which contribute to its success are working in perfect synergy. these include building an excellent relationship between the owners as members of the body corporate, residents, the Managing Agent and all the other service providers.”
Advertorial Comment by:
Director of ANGOR Property specialists
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