New Developments Offer Highest Investment Returns

Any investor will want to know where they will experience the best growth, but with limited risk.  Property has proven to be a low-risk investment over the years, being less volatile than many other investment vehicles.

Knowing where to invest in property is key to enjoying the best gains.  For example, Somerset West has long been an investor hotspot – showing resilience in the global economic crisis, and delivering steady growth of 10-15% per annum in most price ranges.

Developments especially have proven to deliver outstanding returns.  It’s shrewd to identify where the growth nodes are – such as where new schools and commercial centers are planned.  Harcourts Platinum, sole agents at Kelderhof Country Village, have reported that property there has enjoyed outstanding growth of over 20% per annum for the past 5 years.

Your best returns will be experienced when you can purchase off plan in the early phases of a development.  By the time you pay for your investment you will already have benefitted from the capital growth.

Acorn Creek development just outside Somerset West provides this opportunity to smart investors.  For example, you can secure a home at launch pricing from R 2 050 000 and secure with a deposit of R 25 000 and your bond.  Transfer of Phase 1 is expected between September and November 2017.

Steve Caradoc-Davies, principal of Harcourts Platinum, explains: “Acorn Creek is a turnkey product – which means the developer will fund the entire project and construction and you only pay on the completion of your investment.  This removes the risk of you paying for the land and then funding the building works.”

Capital growth at Acorn Creek is expected between 14 – 18% by the time you pay for the investment late 2017.  That’s an outstanding return on investment, given that you will only pay for it then.  Even greater returns are usually enjoyed when you hold on to your property for a further few years and either live in it yourself, or benefit from the rental income.

Shrewd investors identify these opportunities and benefit from outstanding capital growth with minimal risk.  Acorn Creek is marketed by Harcourts and for information can be obtained from Brian Mathews on 076 561 9286.

Steve Caradoc-Davies

Principal of Harcourts Platinum, and Director of Harcourts South Africa

Email your real estate question to steve.cd@harcourts.co.za.

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