Gated estates, also known as security estates, have increased rapidly throughout South Africa.
This is according to Bill Rawson, chairman of the Rawson Property Group, who says the latest figures indicate that there are now over 6 000 of these estates, most of which are selling land or units at a 30% premium on conventional homes.
He says bearing this in mind, it has become increasingly important to be selective in one’s choice of such estates.
“Many of these estates have exceptionally good resident sales agents, and the many proven advantages of estate living, which we all accept, are likely to be fully explained by them, while the finer points in the contract may well be glossed over,” says Rawson.
As a first step, he says it is absolutely essential to get a copy of the financial accounts from the Homeowners Association (HOA), and check with an independent qualified person whether the HOA is financially sound and professionally managed.
On occasions it will be found that a scheme has virtually no reserves at all, and is often breaking the law by not having an officially recognised set of rules by which they must operate, says Rawson.
When such rules do exist, he says they can be unclear. Disputes have, for example, regularly arisen in regard to adhering to the architectural guidelines on the styles, colour schemes and allowable building areas. Then, too, there can be misunderstandings regarding the behaviour of children and residents.
Rawson says such factors must be clearly understood at the outset before any contract is signed.
Quite often, he says there can be unhappiness about levies. “It is important before signing to establish not only how and when these are applied, but also what annual increases are permitted.” He says enquiries should also be made as to whether special levies have been charged, and it becomes alarming if these have been a regular occurrence.
If communal facilities are or will be part of the package, Rawson says it must be spelled out in detail what these are and what rights the residents will have in the use of them.
Quite frequently communal facilities are part of some future phase, which may be a long time coming, and in some cases have never materialise, he says.
Rawson says it is also absolutely essential to walk around the grounds to check out the state of the gardens, paths, swimming pools and other communal facilities. Any signs of a neglected or shoddy appearance is a sign that the management of the project is not up to standard.
Then, too, he says the security arrangements must be inspected, added security being the number one reason why most people move into these estates. These days electrified fencing and perimeter beams are accepted as being necessary in all gated estates.
“All in all no one can deny that gated estates have added greatly to the security and happiness of many people in South Africa,” says Rawson.
“Nevertheless there have been failures and badly-run schemes, and it is essential not to be carried away by enthusiasm, but to check out fully the inherent value of these estates.” – Property24.com
