Maximise your property investment - Paul Weavers

When considering a potential investment there are a number of key factors to take into account. These include initial capital outlay, degree of risk and potential return on investment. Property forms an integral part of any viable investment portfolio. However, with the current fluctuations and poor performance of many global and local financial markets, the percentage of property in an overall investment portfolio has taken on greater significance.
When you buy a property it is either because you want to live in it (primary residence or holiday home) or because you are being speculative (making a property investment for short or long term gain resale/ rental). Both facets apply equally to local and overseas investors.
Property in the Western Cape, including the rapidly growing Garden Route region, offers greater investment potential than any other region of South Africa. Demand is strong, stocks of suitable properties are generally low, pushing prices ever higher and out of the reach of the majority. However, good affordable property investments do still exist, as long as investors get on the 'property train' sooner rather than later.
In order to maximise your investment in the property market, it is necessary to undertake research just as you would if you were investing in the financial markets. But instead of evaluating a Company’s track record, you should research and evaluate the Property Developer in terms of the following key indicators:

Track Record/ Previous Developments/ History.
Developer's level of commitment Investment Value.
Financial Status of Developer Is he going to leave you high and dry before completion?
Management Philosophy How are the Developments managed and run or is it a question of develop and move on? Are the Developments in prime locations Crucial for strong resale values.
Starting prices Are they realistic, affordable or are they overpriced?
Return on Investment over given periods Check historical data.
Environmental Responsibility Is there genuine concern and evidence of the correct environmental processes being followed?
Hidden costs, exhorbitant levies, small print Make sure you know what you are signing. Seek references from residents on an existing development.



MOSSEL BAY COUNTRY ESTATE

A Development that caught the attention of Garden Route Investments was the Mossel Bay Country Estate, Nature Reserve and Golf Club. Following a game of golf there last year (or more accurately an uplifting experience in nature during which a small white ball was being hotly pursued), there was an appeal about the place which I felt needed closer investigation and found:

The Developers, Urs Windholz and Partners , were the first developers to recognise the potential of Mossel Bay (look at the host of new developments now).
The investment by the Developers into Mossel Bay represented the largest into the area since the arrival of Mossgas (Petro SA) some 20 years ago.
The Mossel Bay Country Estate represents the first Estate in South Africa to upgrade an existing golf course as part of the development. Not only did this cut costs, but the savings seem to have been reflected in the more affordable prices for stands and plot and plan homes.
Of the total area of 108ha, the development footprint around the golf course represents less than 8%. 'Houses and buildings are often invasive on a golf estate, but at Mossel Bay they have been positioned in such a way that they shape the golf course and add to its character.' (Compleat Golfer May 2003) The Links course underwent dramatic redesign and upgrading, including a computerised irrigation system, bringing it up to USGA and Championship specs. 'This is one Golf Estate Development that has genuinely improved the existing course'. (Compleat Golfer May 2003) The Clubhouse has also had a major upgrade in terms of facilities, broadening its appeal to new potential user markets away from just golf.
Less than 25% of the Estate’s homeowners are active golfers. This illustrates that the lifestyle, security and peace of mind are the most important criteria among investors. (Golf Estate Living) The whole Estate has a Village theme with a variety of independent villages making up the developed area. This allows for different architectural styles, thus avoiding blandness, but still retaining aesthetic appeal.
Within just four years all stands have been sold, with only a few plot and plan homes still available.
Return On Investment (ROI) statistics best illustrate the excellent investment opportunities offered by the Developer :
Based on the success, a full time management team has now been installed to run the Estate on a daily basis. It is envisaged that in the near future the overall business operations of Urs Windholz and Partners will go through a major restructuring and reorganistional process, to ensure that all new projects are firstly incorporated and then managed.
Recently Urs Windholz and Partners also acquired the Langebaan Country Estate on the West Coast, which they have started to develop on similar lines to the Mossel Bay Country Estate. In addition, as a separate project, Urs Windholz along with three Mossel Bay businessmen, Tossie Steyn, Albert Wiffen and Heinz Hoeffgen-Berger, recently purchased the Dolphin Bay Hotel. Following a complete facelift during the past year, the Hotel's business potential has been turned around to new heights of success from very lowly beginnings.
At a future date, Urs Windholz and Heinz Hoeffgen-Berger, will be putting up a unique town house development on 8600m2 of land adjacent to the hotel, offering prospective residents full access to the Dolphin Bay Hotel and all its facilities, together with stunning bay views and beaches just a stone's throw away.


LANGEBAAN COUNTRY ESTATE

The Langebaan Country Estate, Golf & Sports Club, will be established on similar lines as the Mossel Bay Country Estate, with its 'proven development and management style' being implemented, namely to :

Redevelop an existing piece of land or property and add value.
Take an existing established Golf Course and turn it into a Championship Golf Course with facilities to match.

Design housing developments with minimal footprints relative to total area, stylish architectural perameters and strict adherence to environmental procedures and control.
Implement a successful and proven Management philosophy.
Offer a cross-section of people the opportunity to be part of these developments, either as a resident , a golfer or as a guest.
Ultimately offer potential clients an excellent investment opportunity with very positive growth and ROI benefits.
The Langebaan Country Estate represents an investment of some R1,3 billion. In the first few weeks of sales, 70 stands were sold, requiring the developers to pull forward the planned launch date for Phase Two.
In keeping with the Mossel Bay Country Estate, the developers will offer a 'villages' concept, with a choice ranging from ready built lock-up and go apartments, to single and double storey town homes, right up to luxury residences. Buyers of freehold stands are able to select their style of home from numerous architect-designed options.
Initial pricing ranges from R140 000 for a 650m2 stand, to R345 000 for a two bedroom sectional title apartment and up to R395 000 for a three bedroom unit. Duplex freehold town homes range from R495 000 for a three bedroom unit to R595 000 for a four bedroom home.
Langebaan will also offer a Senior Lifestyle Village, complete with a private healthcare centre, and doctors' rooms with a full time matron. From July, 2003, prices range from R225 000 for a one bedroom studio, up to R525 000 for a 130m2 house with two bedrooms, two bathrooms and a garage.

As with Mossel Bay, less than 8% of the total area of Langebaan (450 hectares) will be developed, with plans for a Shopping Centre, Restaurants, a Museum, a Petrol Station, Convenience Stores plus a Boating Shop with full repair facilities, as well as a Private High School, Bowling Greens, Tennis Courts, Swimming Pools, plus later on an Equestrian Centre, a Hotel and a Conference Centre.

With 'Gary Player Design' upgrading the golf course, great days are ahead for the Langebaan Country Estate. There’s no reason that the rapidly achieved success levels of the Mossel Bay Estate will not be repeated.

SALES AND MARKETING

To manage the sales and marketing of all 3 SA projects, namely the Mossel Bay and Langebaan Country Estates and the Dolphin Bay Hotel, Urs Windholz and Partners have joined forces with Engel & Volkers, an international German based property group (voted Top German Estate Agent in 2002), which has a strong presence in South Africa.
In turn Engel & Volkers will offer all clients access to their global marketing expertise and referral services via a network spanning North America, the Caribbean, the Far East and Australia.
By virtue of their affiliation with Sotheby's International Realty (the property arm of the Sotheby's world renowned auction services), Engel & Volkers will offer clients further international exposure and expertise.
The potential client base for property purchase in South Africa, particularly at these two dynamic Golf Estates, is therefore becoming very global indeed. Subject to your personal needs, combined with your desire to invest in 'affordable' property, an involvement with one of Urs Windholz and Partners' developments would make excellent business sense, particularly if you want to work with professionals who know what they are about.