Newcastle Paradise Estate - A Lucrative Real Estate Investment
INTRODUCTION:
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.
PROPERTY DESCRIPTION:
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.
FINANCIAL BENEFITS:
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.
UPSIDE POTENTIAL:
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.
PROJECT RETURNS:
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.
