Discussions about intergenerational wealth growth are becoming increasingly common, with many people seeking the best ways to manage inherited properties.

Adrian Goslett, the CEO and regional director of REMAX Southern Africa, advises heirs of inherited properties to consult property experts before making any hasty decisions.

“Many property owners often bequeath their estates to loved ones as a means of leaving behind a legacy and offering financial security in their absence,” said Goslett.

“It may feel like an honour to be awarded this part of a family’s history. However, whether you decide to keep, sell or rent, you must consider all legal aspects.”

He explained that profit cannot be gained from every inherited property, as heirs may become responsible for outstanding debt, rights, as well as ongoing payments towards rates, taxes, maintenance and insurance.

“Inherited properties might require maintenance or modernisation, which can be costly. A professional inspection to map out expenses and determine whether the property will provide positive returns on investment is recommended,” he said.

“Based on this, it will be easier to ascertain whether it would be more beneficial to sell the property, but keep Capital Gains Tax (CGT) implications in mind.”

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CGT is the amount taxed on an asset sold when its value has increased, and a profit has been made. The property’s market value at the time it was inherited becomes the beneficiary’s starting point for calculating these taxes.

Jacqui Keel, a property professional with REMAX Dazzle Benoni, added that when an estate is bequeathed to siblings, a neutral third party, such as a local real estate agent, should be appointed.

“The biggest delay we see in finalising estates is not always SARS, the Deeds Office or the Master of the High Court. It is family indecision and disputes,” said Keel.

“Agents can provide comparative market analysis, which serves as the objective, non–emotional truth of the property’s value. This valuation is the critical first step to establish a clean buy–out of one heir’s share by another, a quick sale or a fair rental split.”

Current market trends in Benoni favour modern, secure and load–shedding–prepared properties.

“For older homes built on prime stands, selling might be the better option to cash in on high land value.

“However, if the inherited property is a newer sectional title with good security and low maintenance, renting it out in the current high–demand rental market can provide a superior, long–term passive income stream,” she said.

“With all these considerations, it is recommended to consult with local realtors who are best placed to do a comparative market analysis, rental projections and strategic guidance tailored to the property’s location and condition.”

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