Rob Biden and his family moved from Constantia to Franschhoek to escape the city, and today he directs Seeff Franschhoek together with his son Sean. The Bidens say that the demand for country living, especially smallholdings and farms, is ever-increasing, primarily based on lifestyle needs. Sean explains: "Lifestyle demand is probably our biggest market. Even commercial farms are now offering a 'new and different lifestyle'. However, the reality is that your average 'lifestyle buyer' is going to purchase a smallholding as it is less work and less responsibility."
Size of farms and smallholdings on offer differs from area to area. Says Sean: "Franschhoek has smaller farms and smallholdings than most of the other areas in which we operate, and the land has far more value due to its historical location and sheer scenic beauty. Size is not really the most important criterion - people often prefer to spend more money on smaller, more valuable tracts of land rather than going for out and out space. Agricultural land is very difficult to subdivide, and this pushes the price of existing smallholdings up – especially in desirable locations."In terms of price, Sean says you get what you pay for. "There is always a reason why something is cheap. We look at your budget and see what we can find for your price range in an area that interests you. Realistically, if you are looking for a little lifestyle piece of land, we would probably start showing you land from R2m upwards, depending on the area. Accessibility is a factor - obviously lifestyle properties closer to the infrastructure of towns offering shops, restaurants, medical facilities, schools and so on will have more value than those out in the sticks."
He says that there are three general variables affecting the price of a smallholding or farm – location, water, and labour. "Location is often vital, but we have sold land right next to the N1, because that is what suited the buyer for his needs and the noise was irrelevant. Land with no water on it has little value for agricultural purposes. Lastly, labour can be tricky. Some types of farming are extremely labour-intensive - but having surplus labourers living on your farm or smallholding can detract from the selling price."
He outlines about the benefits of buying a lifestyle property: "There is something about having space around you, and being in a 'rural' area, which can be anything from the outskirts of Durbanville to sophisticated Franschhoek to quaint Tulbagh. This is the 'pull' factor – walking your dogs in the vineyards, growing your own fruit, bottling your own wine. There is also a 'push' factor from the City, where you sit for hours in traffic to get to and from work, get home to a house that looks like Fort Knox, and you go to sleep listening to dogs barking and neigbours' alarms going off. People want to get away from that. Also, 'rural' towns are also not what they used to be – they are often sophisticated little places that have good restaurants and shops, and even excellent private and public schools nearby." What are the disadvantages? "The main disadvantage is the amount of effort that has to go into a smallholding or farm. Even just general maintenance can be costly, but is necessary. A small vineyard is hard work to maintain, but the rewards often outweigh the negatives. A lifestyle farm or smallholding doesn't mean you can sit on your stoep all day and watch the grapes grow - you have to go out there and make it work!"
Buyers are primarily South African: "They are often people wanting to escape the City, as my parents did. The average buyer is more mature, and wanting to get more out of the quality of their current lifestyles. Over 90% of our buyers in Franschhoek and Tulbagh in 2006 were South African.
"You can enhance your investment by improving the quality of the crop to export quality, building a winery that bottles wine or creating a lovely manor house, but generally the actual business and day to day running is not where you make much money. However, depending on what is happening in the property market and on what you buy, you can get decent return on capital growth of the land – particularly in areas like Franschhoek, Tulbagh, Paarl, Wellington and Ceres."
Sean says that the biggest issue they have to deal with in this market is overpricing of land and unrealistic expectations of owners. "Often we get told by the owner that they want so and so in their pocket, but this price is not based on the current market and is often not attainable. If you expect a ridiculous price, you are unlikely to get a reasonable offer, and your property is likely to remain unsold. The better you price your property, based on your experienced agent's advice, the better your chances are of a reasonable offer coming in."
For more information contact Seeff Franschhoek on 021 876 4592 / Seeff Agriculture 021 863 4707 / Rob Biden 082 658 2423.
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1. Boland Farm: Prince Alfred's Hamlet, see www.seeff.com web Ref : 45154. Price : R2 900 000 - Contact Seeff Franschhoek Thys Dannhauser 082 553 0248 / (023) 230 1414. Victorian Splendour of ± 7.5 ha Boland farm near Ceres suitable for fruit, vines and winter crops. Features a stately 4 bedroom, 3 bathroom Victorian Manor House, dated 1906 with period features including lead cast pressed ceilings. What type of buyer it would suit? Retire in style and start a new chapter in your life by farming fruit near Ceres – enrich your life with a new challenge in this gorgeous part of the Cape.
2. Wellington Manor: see www.seeff.com, web Ref 73204: Manor House and other infrastructure on ±135ha - R8 500 000.00; Renosterveld reserve and 2 dams on ±222ha – R5 000 000.00. Contact Seeff Franschhoek Ben Saaiman 084 569 3166 / 021 863 4707. Situated on the North-Eastern slopes of the Groenberg less than one hour's drive from Cape Town, this 357 ha wine and fruit farm and Renosterveld reserve boasts a magnificent Manor House dating back to 1812. What type of buyer it would suit? Spirited adventure seekers who would relish hiking in their own nature reserve and appreciating the spectacular scenery, flora and fauna. Escape to the serenity of the Manor house after a day spent in the reserve.
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