Newcastle Paradise Estate - A Lucrative Real Estate Investment
The Newcastle Paradise Estate, a well-maintained 50-unit Townhouse Estate, is located in the idyllic suburb of Paradise, Newcastle, Kwazulu Natal. Surrounded by top-notch schools, educational institutions, and sporting facilities, this property stands among other similar residential developments, conveniently close to the Newcastle CBD.
The Estate comprises 50 residential units, consisting of 42 three-bedroom units measuring 84 sqm each, and 8 two-bedroom units measuring 65 sqm each. Developed in 1978, the property has consistently maintained a high occupancy rate of over 95% throughout the years. Even during challenging times like economic downturns, geopolitical changes, financial crises, and pandemics, the occupancy rate remained stable, making it a robust investment choice.
MANAGEMENT & MAINTENANCE:
The Estate is skilfully managed by professional real estate managers, ensuring continuous repairs and maintenance over time. As a result, the property is in excellent condition, offering a clean and neat environment. The attractiveness of the surrounding suburbs further contributes to its consistently high occupancy rate.
One of the notable financial features of this investment is its long-term stable tenant base, ensuring a reliable rental income stream over the years. With well-managed expenses and sufficient provisions for repairs, maintenance, and security, the Estate provides a safe and comfortable environment ideal for family living.
Newcastle Paradise Estate is an excellent choice for Buy-and-Hold Investors seeking a stable and profitable investment. Moreover, for Investors looking for even higher returns, the property can be converted into a SECTIONAL TITLE SCHEME. During the development phase, the units can be pre-sold, potentially generating substantial profits. According to our estimates, the 84 sqm units could be sold for R714,000.00 each, and the 65 sqm units for R552,500.00 each, resulting in a total project income of R34,408,000.00.
At a purchase price of R13,000,000.00, with an investor's own contribution of 20% (R4,875,600.00), the projected net profit is R10,120,000.00. This translates to an impressive ROI of 208%. Financing for the balance can be arranged through reputable institutions like the National Finance Housing Corporation (NHFC).
INCENTIVES FOR FIRST TIME OWNERS:
Additionally, the National Finance Housing Corporation (NHFC) offers grants for first-time home owners, potentially providing up to R100,000.00 per unit. This makes the project extremely attractive and profitable for an investor.
The Newcastle Paradise Estate presents a compelling opportunity for investors seeking a secure, lucrative, and potentially high-return real estate investment. With its excellent location, strong tenant demand, and the possibility of converting into a SECTIONAL TITLE SCHEME, this property is indeed a gem in the real estate market.