Newlands Peak8th Jun 2020
Own a unit in this luxury Newlands development for just R996 per month.
Cape Town’s leafy suburb of Newlands is not exactly renowned for its entry-level investment opportunities, typically catering to well-heeled families and seasoned investors instead. However, a unique combination of circumstances has created a once-in-a-lifetime opportunity to secure a luxury unit in the brand-new Newlands Peak development for as little as R996 per month.
Newlands Peak is new residential development by highly-acclaimed Rawson Developers that promises to breathe vibrant energy into a suburb steeped with a rich history and tree-lined streets.
Brad Morgan, from Rawson Developers, explains how.
Breaking barriers to entry
“Buy-to-let property has always been a popular and profitable investment, particularly during turbulent economic times when it offers very desirable stability,” says Morgan. “That said, there have traditionally been a few barriers to entry for those just starting out. Namely: relatively high upfront costs; potentially expensive financing; and ongoing expenses that are difficult to completely offset with rental income in the beginning.”
Thanks to current circumstances, Morgan says those barriers to entry have all but completely disappeared.
“We’ve been in a buyers’ property market for some time now, which has slowed the ordinarily sky-high price growth in suburbs like Newlands,” he says. “This, combined with low activity levels and the financial fallout of the coronavirus pandemic, has incentivised sellers – and developers – to really put their best foot forward when it comes to pricing.”
Rawson Developers, for example, have launched incredible deals to stimulate sales on several of their developments. They have sold over 30 units at The Westwood in the last month, making this one of their best months in the last six years.
- Micro apartments from R1,350,000
- Studios from R1,650,000
- One-bedrooms from R2,125,000
- Premium one-bedrooms from R2,600,000
- Two-bedrooms from R3,400,000
- Premium two-bedrooms from R4,000,000
- Three & Four bedroom penthouses from R6,100,000
All prices include Vat. No transfer duty payable.
The cost of property financing is also hitting record lows, with interest rates undergoing their forth cut of the year in May.
“There’s a good chance we’ll see more cuts before 2020 is over,” Morgan adds, “but the prime lending rate – now 7.25% – is already at its lowest level in 47 years. As a result, bond applicants are qualifying for up to 20% more finance than just a few months ago and have a far wider range of investment opportunities within their reach.”
Banks are also advertising up to 100% bonds for qualified applicants, enabling deposit-free purchases. Other institutions are financing costs as well, offering up to 105% loans under certain conditions.
While purchase prices and finance costs may be dropping, Morgan says rental yields in high-demand areas like Newlands have remained relatively stable. This has made it easier for investors to cover a larger proportion of their bond repayments with rental income, and has enabled Rawson Developers to guarantee rental income as part of their Newlands Peak special.
Newlands Peak early investors benefits
“Investors taking advantage of the special offer could break even as early as their second year and start turning a profit the year after that, those investors who take out a 25 year bond could break even from day one” he says. “It’s not just investors who stand to benefit, either. Tenants could also use this chance to become owners, enjoying the incredible lifestyle and convenience of Newlands Peak for not much more than they would have been paying in rental.”
- 11 Storey luxury apartment block
- Secure under cover parking
- 8 floors of apartments including:
- Ground floor garden apartments
- 2 floors of penthouse apartments
- Rooftop deck with 2 heated swimming pools
- Top floor state-of-the-art fitness centre
- High speed fibre connectivity
- Luxurious foyer and concierge
- 24 hour security
- Premium coffee shop & restaurant
- Landscaped atrium with seating & WiFi
- Drop & go laundromat
- Pet friendly
With Newlands apartments showing a history of excellent long-term growth, both buy-to-let investors and ordinary buyers stand to make a healthy profit if they hold onto their purchase for a reasonable amount of time.
“There is always the possibility of amazing short-term growth with new developments,” says Morgan. “We’ve seen buyers put down a deposit and sell for 50% more when their development was completed 18 months later. It’s better to invest with an eye on long-term appreciation, though. This gives far more reliable returns, and if the opportunity arises, you can always cash in early.” The expected completion date for Newlands peak is three years from now so it is very likely that by the time it is built, purchasers will have already seen some decent capital growth.
Newlands Peak, is a state-of-the-art residential development situated in Newlands by acclaimed Rawson Developers that promises to breath vibrant energy into a suburb steeped with rich history and tree-lined streets.
This soon-to-be iconic development in the garden suburb of Cape Town, aims to set the new standard in sustainably-designed and community focused living. Perfectly positioned within walking distance of the Claremont Financial District and a short drive to some of the top schools in the Western Cape, Newlands Peak is nestled at an idyllic address.
Comprising 232 luxury apartments, this bold block blends geometric design with the existing lush greenery to form an urban island offering contemporary spaces fitted with every modern amenity you could desire.
From the moment you arrive at Newlands Peak you are made to feel welcome and safe. You’ll be warmly greeted by professionally dressed security staff before entering the undercover secure parking. Biometric access control and 24hr CCTV surveillance assure your peace-of-mind throughout your stay.
Flanked by two avenues of plane trees this upmarket building boasts an impressive array of facilities including 2 swimming pools, a fully equipped fitness centre, yoga deck and running trail for the actively minded. If entertaining is a priority, then the naturally lit coffee shop, restaurant and rooftop deck will make socialising a breeze.