The total number of properties sold in Stellenbosch in the first five months of this year is only half that sold for the same period in 2013, but the problem is a lack of stock rather than buyers.
Excellent long-term growth potential keeps Stellenbosch property in high demand. Strong demand and limited supply has ensured that property value has seen excellent appreciation, particularly over the medium to long term.
There appears to be a growing trend in the number of private investors and parents climbing on the bandwagon by buying residential units to let out to an annually growing number of students signing up for tertiary education.
Stellenbosch is a town in the Western Cape province of South Africa, situated about 50 kilometres (31 mi) east of Cape Town, along the banks of the Eerste River. It is the second oldest European settlement in the province.
Stellenbosch University (SU) is among South Africa’s leading tertiary institutions. Every year, thousands of students from all over the country stream to this beautiful town and exceptional campus. Although close to 5 200 students can be accommodated in 27 University residences, the demand far exceeds the supply. In total, 27 823 students were enrolled at SU in 2015, resulting in over 20 000 of them having to arrange private accommodation.
Stellenbosch experiences an annual “apartment season” starting largely in September through to November where owners of these apartments wanting to dispose of their assets put properties on the market and those seeking student housing put in offers, including parents of prospective students. There is definitely a gap in the market for safe, secure and affordable student accommodation close to university campuses and other academic precincts.
Student properties in parts of Stellenbosch such as Tweespruit are also seeing healthy rental incomes, with investors able to rent out a R1.3 million house for up to R11 000 per month.
Tweespruit is a new up-market security village situated in the Stellenbosch winelands, consisting of 71 Free Standing 2 and 3 bedroom homes.
Each house has two bathrooms, a lock-up garage and beautiful modern internal finishings. The village also features state of the art security.
9 FINANCIAL AND INVESTMENT REASONS WHY INVESTORS SHOULD BUY IMMEDIATELY – TWEESPRUIT | STELLENBOSCH
- Purchase prices start from an unbelievable R1331 584 with rental income from R12 000 per month
- This gives our property investors nett yields from 9.37 – 11.23%
- The houses range from 92m² to 110m² in size (including single garage) and are selling from only R1,331 584. On 90% financing, the property is breaking even from day one. (This includes all monthly costs on the property, including bond repayments, rates & taxes, levies /plus rental management costs)
- IGrow Wealth Home Loans will structure investors bonds to achieve maximum financing in terms of the banks current building loan criteria. We have contracts with Absa, Standard Bank, First National Bank, Nedbank, Investec, Rand Merchant Bank and Mercantile Bank
- There is a R30 000 refundable reservation deposit that secures the investors house. This means that if your bond is not approved on your terms and is declined by you the investor, the attorneys will refund your R 30,000 reservation deposit with interest
- This development has been TAILORED and structured by IGrow with our in-house trust and tax consultants together with the developer, to maximize Article 13sex tax write offs. This ensures that our property investors put cash-flow into their pockets from day one and enjoy maximum tax benefit.
- The investor can write off 100% of the construction price of the house against their personal income tax liability. This has been cleared with SARS and affords even greater returns for investors structuring an Article 13sex transaction through IGrow Wealth Investments. (Book an appointment with one of the IGrow Tax & Trust Specialists today!)
- Tenants are in abundance and there are simply not enough properties for the massive tenant demand in Stellenbosch. IGrow’s recommended rental management company, SA Investor Rentals, provides a systematic end to end service with regards to procuring, vetting and managing tenants on behalf of the IGrow Property Investor
- Tweespruit is selling at R2,000 per square meter less than our competition developers in the area.
Reserve your House Today…
Only 6 Houses available with price increase expected December 2016
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