Mzuri Lifestyle Estates
Lifestyle Estates: The refined, contemporary and inspired choice for the discerning investor
South Africa is currently in the midst of tough economic times, impacting an array of investment types. Residential property investments (particularly in lifestyle estates), however, are ‘safe as houses’. According to Lightstone Property’s latest Residential Property Indices, the inflation rate of these developments has held surprisingly stable over the past year, whereas freehold properties has been steadily decreasing. In real terms, this translates to lifestyle estates being a relatively safe investment, with better chances of good returns.
The inclusion of value-adding lifestyle benefits like an onsite gym, 24-hour monitored security, high-speed fibre to home and outdoor recreational facilities also enable homebuyers to maximise their investment. This, coupled with their proximity to amenities like shopping centres, medical facilities and private schools, makes it unsurprising that one in 10 South Africans* opt for these developments when making residential property purchases. Furthermore, with a number of these estates in the Western Cape being situated close to beaches, wine farms, nature reserves and golf courses, investing in these developments is an investment in quality of life.
The lifestyle offering isn’t the only thing drawing investors to these estates. Some, like Mzuri Residential Estate, provide a mix of property types that cater to an array of pockets and needs. These include freestanding homes, townhouses and apartments.
With housebreaking being one of the most common crimes in South Africa (accounting for over 50% of all crime**) buying a freestanding home within a lifestyle estate is a smart move. It combines the space and privacy perks of a freestanding house with the heightened, hi-tech security of an estate, along with nearby neighbours who can keep an extra eye on the property. Unlike traditional freehold properties, where owners are entirely responsible for their own security, the state-of-the-art security offered by these estates are all included in the monthly levies.
Townhouses have traditionally been associated with lifestyle estates and have proven popular with investors buying to let. Instead of having to pay for home insurance as well as for the upkeep of the property, all this is covered by a fixed monthly cost which lessors can recoup through rent.
Apartments are generally the most affordable option for investors, with transfer duty rates being far lower than the rest of the residential property market. Investors can also derive excellent rental returns given the high demand for this type of property from tenants. Apartments within a lifestyle complex offer the added bonus of having a body corporate to manage the maintenance and ensure that the property is well taken care of in the absence of the owner. Plus, when not tenanted, the apartment can serve as a holiday home for the investor themselves.
“As a vehicle for creating wealth, investing in property is still a good option,” says Managing Executive of Absa Home Loans, Carel Grönum.
To explore the investment options available at Mzuri Residential Estate, visit http://www.mzuri.co.za.
* http://www.lightstoneproperty.co.za/adminNews/news.aspx?cId=1
** http://www.statssa.gov.za/?p=9890