Property Investment Cape Town

Exclusive Investment Opportunity - Port Elizabeth

Fourleaf Estate development is backed by OLD MUTUAL HOUSING IMPACT FUND offering affordable, well architecturally designed housing in a security estate, bordering Parsons Vlei. Take a look and you’ll find that Fourleaf Estate is close to everything that you will need!

  • 40 homes available
  • 4 house types to choose from
  • Occupation 2018

GET ON THE RESERVATION LIST, RESERVE YOUR UNIT TODAY!

Fourleaf Estate - Phase 3
Unmatched Investment Returns!

Fourleaf Estate is situated within minutes of the top-class shopping opportunities at Baywest Mall. Public schools are also nearby and Curro Westbrook is just five minutes away. Purchase prices start from an unbelievable R658 000, with rental income from R5 300 p/m, which gives you, the property investor, a gross yield up to 9.67%.

What is Rental Assist?
Exclusive to IGrow Investors, R1 000 per month for 12 months will be paid to investors from date of registration, towards rental received from the tenant, to offset monthly shortfall.*
* Terms & Conditions apply

Homes Selling from:
R658 000
Projected Rental Income from:
R5 300 p/m
100%
Bond financing available

Investment Summary - Fourleaf Estate

Based on a 20-year bond term with 90% bond financing

Invest only R65 800 in a geared property and achieve a possible return of R4 426 694

How is this possible?

An investor puts down 10% of the purchase price, however, he receives growth on the market value of the property. The equity in the property is based on the market value, less the outstanding bond. The rental income that is received over the term of the bond covers the bond instalment as well as other expenses, such as rate, taxes and levies. As you can see from the graph, after 20 years, the equity in the bond is equal to the market value of the property. So effectively, the client paid R65 800 as the initial lump sum and achieved a future property value of R4 426 694. There will be monthly shortfalls with a 10% deposit until the break-even point, whereafter there will be surplus monthly cash flow which can be reinvested or used to finance additional bonds.

The significance of a geared property is the opportunity cost: had the investor chosen to invest in an alternative investment vehicle such as unit trust, he would have had to invest R658 000 into a unit trust to achieve the same future value after 20 years (assuming the annual compounding growth rate was also 10%). This is because unfortunately a unit trust cannot be financed through a loan and therefore the investor has to use all his capital to achieve the same future fund value of R4 426 694.

Another important point is that with property, the investor has the option to refinance the bond and effectively “unlock” the equity without triggering a capital gains tax event. In other words, the investor could use R4 426 694 as additional lump sums to acquire additional properties. There will also be future rental income generated, that escalates on an annual basis, which is the equivalent of drawing an annuity income from the unit trust, however, there is no risk of capital depletion if the markets underperform. The property is not sold and continues to increase in market value.

With a unit trust, if the investor disinvests from the unit trust funds, there will be a capital gains tax which is added to his tax payable for that financial year. If an annuity income is drawn from the funds, there is risk of running out of capital should the funds not meet the income requirements in the years to come.

10% Deposit

R65 800


Cumulative Rental Profit from break-even to year 20

R696 909

Bond Loan-to-Value

90%

Gross Yield in year 1

+10%

Rental Assist

R12 000

Value 20 Years

R4,426 694

Cumulative Rental loss until break-even

R49 335

If you invest R65 800 today in a geared property in Fourleaf Estate.

Your property could be worth R4 426 694 in 20 years

5 X Fourleaf vs. Unit trust (Section 13 Sex portfolio)

20 years / 90% bond (R329 000 deposit) / 10% interest rate / 10% property growth rate (assumed) / 8% rental escalation per annum

An investor has an initial lump sum of R329 000 available an wants to compare investing in a unit trust or in property in order to yield the highest future value after the 20-year period.

Based on his income and affordability, he can qualify to purchase five Fourleaf properties where the R329 000 is spread as deposits and he then finances 90% bonds over 20-year terms.

Property:

Property: R3 290 000 20 years / 90% bond (R329 000 deposit) / 10% interest rate / 10% property growth rate (assumed)

Market value in year 20 + Net cash flow:

R22,133 475 + R3,237 866

Unit trust:

Unit trust: R329 000 20 Years / 10% annual compounded growth rate

Fund value after 20 years:

R2,213 347

Total tax deduction applied over 20 year period:

R2,065 462

SARS annual tax deduction for a period of 20 years:

R 103 272

SARS will provide a tax deduction to the equivalent of 3 Fourleaf properties, which illustrates how powerful the Section 13sex tax incentive is to property investors.

ALL INCLUSIVE INVESTMENT BENEFITS

  • Unbelievably LOW shortfalls from as little as R300 per month
  • All bond registration and attorney fees INCLUDED
  • RENTAL ASSIST for Investor of R1 000 for 12 months
  • Excellent rental demand neighbourhood
  • Security estate

INVESTMENT OVERVIEW

  • Development is backed by OLD MUTUAL HOUSING IMPACT FUND
  • Purchase price from R658 000 – R898 000
  • Rental Income from R5 300 – R7 300 per month
  • Levy (approx) R450 per month
  • Approx Rates & taxes from (approx) R240 per month
  • 100% financing available through IGrow Homeloans
  • Turnkey project - only pay first bond instalment on registration after completion
  • R35 000 reservation deposit (refundable should finance not be approved)

MASSIVE TAX INCENTIVE FOR INVESTORS

Section 13sex of the Income Tax Act applies where up to 72% of the purchase price can be written off for tax purposes against your income tax liability when purchasing 5 properties or more.

Purchase 5 units and benefit up to R103 272 write-off per annum through Section 13sex of the Income Tax Act.

Comprehensive End-to-End Rental Management

  • Tenant Vetting
  • Tenant Placement
  • Rental Collection
  • Ingoing & Outgoing Inspections
  • Maintenance Service Available

GET ON THE RESERVATION LIST, RESERVE YOUR UNIT TODAY!

House Plans | FourLeaf Estate, Port Elizabeth

4 house plan types to choose from.
Simplex and Duplex houses available.

TYPE 1
47

2 Bedrooms, 1 Bathroom Simplex

Unit Area - 47m2


1 Carport & built-in braai



TYPE 2
61

3 Bedrooms, 1 Bathroom Simplex

Unit Area - 61m2


1 Carport & built-in braai



TYPE 3
61-2

3 Bedrooms, 2 Bathrooms Simplex

Unit Area - 65m2


1 Carport & built-in braai



TYPE 4
75

3 Bedrooms, 2 Bathrooms Duplex

Unit Area - 75m2


1 Carport & built-in braai



PROPERTY FEATURES

  • Granite kitchen counters
  • Built-in oven and hob
  • B.I.C in bedrooms and kitchen
  • Tiled throughout
  • Energy efficient solar geysers
  • Modern bathroom fittings
  • Modern light fittings
  • Aluminium window frames
  • Wifi enabled (Telkom LTE network)
  • Electricity meters
  • Landscaped parks
  • Pet friendly

IGROW PACKAGE INCLUDES:

  • R12 000 Rental Assist
  • Car port with built-in braai
  • Paved driveways
  • Roll-on lawn
  • Perimeter walling
  • Top kitchen cupboards

SECURITY FEATURES:

  • Electrified fencing
  • 24 hour manned security
  • CCTV cameras
  • Perimeter wall

GET ON THE RESERVATION LIST, RESERVE YOUR UNIT TODAY!

Interactive Sales Map

Affordable luxury is a rare concept, made real through clever planning. Choose from 4 house types which have been carefully selected to fit your investment needs.

Phase 3 - Only 30 Available!

The interactive development map below, which you can scroll across, shows all the available properties in green, including the property types with specifications. Once a unit has been reserved we will hold the unit for the investors for 48 hours, and when the unit has been sold the property will be shown as red and will be unavailable.

We work closely with you to select the right property deals that are tailored to meet your investment requirements and help you to achieve longterm financial objectives.

83
90
Fourleaf_Interiors_C0A5441
75

GET ON THE RESERVATION LIST, RESERVE YOUR UNIT TODAY!

Location, Location, Location

Fourleaf Estate is nestled in the fast-growing suburb of Parsons Vlei in Port Elizabeth. With the R2 billion Baywest Mall a mere 8km away and Curro School 4.7km away, investing into this development early is going to reap good returns. Port Elizabeth, regarded as the 'Friendly City', boasts an International Airport, harbour, blue-flag status beaches as well as Coega Development Corporation on its outskirts. Coega is now set for the implementation of over R26 billion of investment projects, which will lead to boosting the economy by creating jobs and more property rental demand.

map

AREA:

Rowallan Park: 2.7km
Kabega Park: 6.3km
Linton Grange: 6.7km
PE Central: 15km

SHOPPING CENTRES:

Baywest Mall: 3.5km

FUEL STATIONS:

Engen: Greenock Road: 2.6km

EDUCATION:

Curro Westbrook Private School: 4.7km
Westbrook Park Primary School: 4km
Rowallan Park Primary School: 2.4km

LOCAL GROCERY STORES:

Spar Rowallan Park: 3.9km
Checkers Metlife Plaza: 5.6km
Pick & Pay Walker Drive: 7.6km

FourLeaf Documents for Download

GET ON THE RESERVATION LIST, RESERVE YOUR UNIT TODAY!

Have a Question? | Contact Us

The IGrow Wealth Team wants to assist you to review your existing portfolio and then formulate the investment strategy in helping you acquire and build your property portfolio.

Phone :
  • +27 (0)21 979 2501
  • +27 (0)21 979 2505
Email :
  • info@igrow.co.za
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