Over the last decade, we have seen KZN grow from strength to strength. This province is transforming each year and offering residential and commercial properties that address socio-economic issues, while also creating easy connections to places that need to are attracting investors and families alike. One of KZN’s success stories is the Sibaya Coastal Precinct.
Named a catalytic development, the Sibaya Coastal Precinct sits along the North Coast of KZN, between Umhlanga and Umdloti. It has unlocked value for both property developers and homeowners. Due to the massive property value growth experienced within Sibaya, it has now become South Africa’s best performing residential precinct and will now host the first-of-its-kind mixed-use development and smart village, Salta Sibaya. The success of Sibaya’s is not only a result of its thoughtful, holistic design but also its placement within the province of KZN; which is fast becoming SA’s most investable province for a host of reasons.
Coastal property, like that in Sibaya will continue to grow in value. Using the nearby suburb of Umhlanga as an example, sea-facing homes have seen a sharp rise in the price-per-square-metre over the last decade. Much of this value is owed to placement and positioning, but there is also one key factor that adds massive value – infrastructure. Umhlanga’s value has steadily climbed over a fairly extended period, and its desirability has remained stable. Sibaya, however has set a new benchmark with 40% capital appreciation achieved in less than 5 years. Sibaya is vastly different in that it has been plotted, planned, and well designed to create value for its investors. Additionally, Sibaya’s infrastructure, for the most part, has been laid and upgraded by private developers like Devmco Group, in order to ensure uninterrupted services within the precinct. Sibaya’s strategic placement along the coastal side of the M4 draws on the best of KZN’s North Coast and is the golden key that unlocks true value.
Along with good infrastructure, Sibaya upholds a genuine sustainability ethos, seen through the 60% of undeveloped natural environment. With the value of natural assets, like those within Sibaya, being at the forefront of property development and urban planning, Sibaya’s 350-hectare coastal forest will lend even greater value to the homes within the precinct. Having a strict ‘no-development’ zone, the design of Sibaya recognises the importance of these natural areas, not only to property values but also to the long-term vision of a precinct that upholds sustainability and is future-proofed.
Running along a portion of one of Durban’s major highways, the M4, makes getting to and from Sibaya quick and easy. This is one of the factors which resonate deeply with buyers from Gauteng. For many, the commute between work and home takes up a fair portion of their day, and with that valuable time for business or leisure. The ease of commute is one of the lifestyle factors which adds value to an area like Sibaya. Another facet of accessibility is where schools are placed in relation to one’s home – just between Ballito and Umhlanga area host of the country’s top private schools operated by top education providers, which continue to attract people from all over Durban. Sibaya itself will also include a Curro school from Grade R to Matric, and a private university and modern student residences. This creates a development model is unseen in SA; the ability to live within a new, well-planned, holistic precinct which offers sea-facing homes, is secure and well-managed with a new, modern university within. In light of this, KZN is poised to set a new benchmark by offering students the chance to attend a top-class private university which is literally in walking distance from home. Furthermore, the proximity of the university to the various residential estates within Sibaya means that it will undoubtedly attract many more families from outside of KZN’s borders. Over the last 10 years, the corridor between Durban-Umhlanga-Ballito has experienced approximately R54 billion in wealth growth, which is largely owing to the influx of families into the region.
Business confidence and busy airports
King Shaka International Airport has become one of SA’s busiest airports. An easy 10-minute drive from Sibaya, the airport’s accessibility makes it ideal for those who commute in and out of the province for business purposes – you could touch down after a 55 minute flight from Joburg, walk off the plane, get in your car and be home within 20 minutes. Many families are choosing to semigrate to KZN for a host of reasons – from top schools and pleasant weather to less congestion and traffic, and also the chance to live a slower pace of life. Families from other provinces like Gauteng, have bought up property in Sibaya for primary residential use knowing that the proximity of the airport enables business travel to continue seamlessly.
Business confidence is not only an indicator of a growing regional economy, but also an indicator of where to invest. KZN is undergoing a huge transformation and is becoming the destination for business. Durban’s new CBD has established itself in Umhlanga Ridge, with the likes of Investec and Nedbank having set up there. Further north, the Dube Tradeport forms part of the growing Aerotropolis, which will link business, manufacturing, freight, and cargo together in one strategically planned region.
The volume of greenfield development taking place in KZN indicates the growth and desirability of the region. By way of its design, Sibaya has set a new regional and national benchmark for what a city of the future looks like. The Sibaya Coastal Precinct is one of the factors which makes KZN South Africa’s most investable province.
We want to arm people with as much knowledge as possible about investing in property and so in this post we unpack some of the most common property-related questions.
What is a credit rating or score?
Your credit rating, or score represents your riskiness when it comes to borrowing money from a bank or financial institution or service provider. The score ranges from 300 to 850 and the higher your score is, the less risky you are and the more ‘trustworthy’ you are financially. At the end of the day an lender needs to know that you will pay back the loan (if you don’t pay this is called ‘defaulting’) and the banks are bound by law to check that you can actually afford the loan and that they are not lending money unscrupulously.
How is your credit score measured?
Before a bank or financial service provider will lend you money, they will have a look at your financial fitness and your credit score makes up part of your financial fitness test. Before lending you any money the bank or lender will want to know if you can afford to service your loan, or debt and whether there is proof that you qualify for a loan based on your income, your financial history and how good you have been about servicing your already existing debts like a motor vehicle, a credit card or an account with a retailer like Edgars.
Why do you need to know this?
You need to know your credit score if you want to apply for any kind of loan or credit, you may also want to know what your score is in order to improve it. Sometimes a tiny little thing can seriously affect your credit score like a small few Rands outstanding on a credit card or even an old debt you many be unaware was unpaid.
Where can you find your credit score?
You can find out your credit score on any number of free online calculators provided by a credit bureau like TransUnion, XDS or ClearScore. It literally takes minutes to find this out. By law, each South African is entitled to one free credit score assessment per year.
How can you improve your credit score?
Firstly, you don’t have to be in massive debt to prove you should qualify for credit as the lender will say that it looks like you can’t afford to pay off another loan. A poor credit score does not mean you won’t be granted a loan, it just means they’ll likely charge greater interest on the amount you borrow as you are deemed a risky borrower. Risky borrowers can be due to defaulting on an instalment due on a loan. On the flip side, if you have absolutely no loans or credit facility with anyone then the banks will be scared to lend you money as they have no way of knowing if you can or can’t service the debt. If you have absolutely no credit facility with anyone then your credit score will likely be low too. Things like a car loan, a cellphone contract and an account (which is being properly serviced) with a retailer will demonstrate that a) you can afford to borrow money; b) you are able to service your debt and c) there is record that you have been paying your debts on time and to the instalment amount required and have not defaulted on payments.