Realise More Value from your Harare Property

Land in Harare popular suburbs is becoming more and more scarce, while demand in these areas is always on the rise. With rising demand it means buyers are willing to pay a good price for such land which creates an opportunity to realise value for property owners with excess land on their properties.

Value creation can be achieved through subdividing or sectionalising such properties for the purpose of selling or developing and leasing out for income generation. 

1. Subdivision

“Subdivision involves dividing up a piece of land into two or more parts, and registering these as separate, standalone properties.

The separate stand alone properties can then be sold or developed to generate income for the property owner. The reduced size of your own land could also cut your rates, utilities, and maintenance costs, creating an easier and more sustainable lifestyle for yourself.

Subdivided properties tend to achieve a higher return on investment when selling, making it a very smart financial decision in a lot of cases.

2. Sectionalisation

Sectionalisation is the process of converting a large, freehold property into a sectional title scheme.

The process involves conversion of a single property into a multi-unit property which can be rented out or sold to create value for the property owner. Sectionalisation is more suitable for office developments, flats/apartments and cluster housing.

A separate Title Deed is issued for each unit within the property. It is therefore possible to register a mortgage bond securing only the particular unit in the property.

There are a lot of benefits, from being able to share maintenance costs and responsibilities, to enforcing codes of conduct and design guidelines.

What’s the best route for you?

While some properties may qualify for both sectionalisation and subdivision, many factors come into play when deciding the best route to take.

It’s best to speak to your Rawson Properties Neighbourhood Experts when you start exploring your options, they can explain the standard rules that apply to your neighbourhood, help you check your title deed for any additional conditions, and put you in touch with a qualified town planner or surveyor if necessary.

Even more importantly, they will be able to help you quantify the potential returns on both options, finding the best fit for their particular circumstances and financial needs.

Ultimately, you need to ensure that you’re making an informed decision and that your outcomes will match your expectations. That's a lot easier to do with the help of an experienced property professional who understands the market dynamics in your area.

Disclaimer: This article has been prepared by Rawson Properties(office.harare@rawson.co.za) and provided for informational purposes only. Prior to execution of any investment, you are advised to consult your real estate investment advisor. Neither Rawson Properties nor any independent provider is liable for any actions taken in reliance on information contained herein.