Franlize Fourie of Chas Everitt Cape Town South reports more and more Plumstead property owners are interested in building an additional rental property on their land.
An article published by Private Property over a year ago on this matter is well worth referring to. Extracts below:
Cape Town’s Municipal bylaw was recently amended to create an automatic right to build a second dwelling on almost all properties in Cape Town.
The rise of sectionalisation and subdivision of property
Sectionalisation and subdivision of land by developers to meet the growing demand for housing has become common in Cape Town where further expansion is curtailed by the lack of available land, however, with recent changes to local municipal bylaws, individual landowners now have the right to unlock the value in their land.
There is now an automatic right to build a second dwelling on almost all properties in Cape Town, even if the zoning is single residential, rural or agricultural. This creates opportunities to unlock value in almost every property in the Cape without going through the tedious process, costs and stress of obtaining a departure from Council to erect a second dwelling on your property either by subdivision or by opening a sectional title scheme on your property.
How sectionalisation and subdivision adds value
Benefits to property owners include lower rates and taxes, reduced maintenance, a cash injection when selling. Minimum sub-division sizes vary from suburb to suburb and this will determine whether to opt for subdivision or sectional title.
Subdivide or open a sectional title? Although property owners now have the right to split their property, there are still numerous regulations to which they must adhere. The first step is to appoint a town planner to establish what you can and cannot do in your area and assess your possibilities. Thereafter, an experienced estate agent will advise with regards to which type of second dwelling will offer the best value in the long term and, together with an architect, you will then be well placed to put a game plan together to achieve the best results.
Restrictions may apply to your property, we can plan the best strategy for unlocking maximum value in the most cost-effective and time-efficient way. If restrictions against subdivision are at play, you would go the sectional title route and vice versa. If there are any restrictive conditions, most restrictions can be removed by application to the Municipality with the assistance of your conveyancer.
(Article above has been edited for a shorter read – here is the original : Source )