New Benoni development set for solid returns

Located on the East Rand of Johannesburg, Benoni forms part the Ekurhuleni Metropolitan Municipality. Considered as a service hub for other East Rand towns such as Brakpan, Nigel and Springs, Benoni also boasts an array of amenities from excellent schools and first-class hospitals to hotels and golf courses.

Silver Pines Estate, a new development in the Benoni area which is being marketed exclusively by RE/MAX One, is situated in one of the most popular residential suburbs in the area, Rynfield. With phase one nearing completion and occupation anticipated for September 2014, Neil Fuller, Broker/Owner of RE/MAX One, says that this estate is set to offer investors excellent returns on investment.

The 180 units within the Silver Pines Estate are available in various configurations including one-bedroom, one-bathroom units; two-bedroom, one-bathroom units and three-bedroom, two-bathroom apartments. The units range in size from 40m² to 83m² and include granite kitchen counter tops, solar geysers, fenced gardens for the ground floor units, ample parking bays and DSTV aerials.

Silver Pines Estate will provide a high standard of security for its residents through the electric fencing and a manned entrance gate. Communal facilities include the play area, clubhouse and swimming pool. This community has been designed by one of South Africa’s foremost architectural firms, LYT Architecture, with emphasis on contemporary styling and upmarket finishes. The development is being undertaken by one of the leading development groups, Italian master builders with over forty years of collective experience, ensuring that buyers can be confident of the quality product they are investing in. The estate is well-located in a quiet area close to the Ebotse Golf Estate, but is still within proximity to amenities and offers easy access to the major road networks.

Perhaps the most attractive feature of this development, according to Fuller, is the pricing. “A three-bedroom unit is selling for just over R700 000, which makes Silver Pines Estate really competitively priced and includes costs.” Fuller points out that these are the launch prices which are bound to increase, and says that investors should act now to make the most of the launch prices.

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that with many areas across the country experiencing a shortage of residential stock, competitively priced units in new developments that offer security and which are close to amenities will often sell quickly and offer investors solid returns over the long term.

From an investment perspective, Fuller has worked out that an investment in five units within this estate will net the investor a 16.42% per annum gross return on cash invested after 20 years if the property value escalates by just 4%.

Fuller points out that the South African Revenue Services (SARS) will essentially fund the entire shortfall in rent and levies under the 13SEX Tax Act for investors who own five or more residential rental properties. “This tax act is not well known, but essentially investors who have five or more properties get an annual 5% tax rebate from SARS each year for the 20 years they hold the properties.”

As the value of these units increase, so too will the rentals, which means investors can also decrease the shortfall between their bond repayments and rental income quicker if they purchase the units at the reduced launch prices. Fuller expects these units to have a strong rental demand at around R5 700 per month.

“A well-located property in a good area will always be an excellent investment option over the long term, no matter whether it is purchased purely for investment reasons or as a primary residence,” Fuller concludes.

For more information contact RE/MAX One on 011 615 4911 or visit www.remaxone.co.za

Author: Wesley Barnard from Squared Communications.
More Info link: https://remax.co.za
Images: For high res version/s of One image/s please contact: Squared Communications.

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