KZN property company sees R75m in sales during lockdown
DURBAN – With global stock market volatility and South Africa’s historically low interest rate, property investment is growing despite the challenges, as evidenced by the recent achievements of property developer company, Devmco Group.
Charles Thompson, Director of Devmco Group said: “Despite the lockdown and the challenges that come with it, we have concluded sales to the value of R75 million since the beginning of Level 3 just about 2 weeks ago.”
“Although the economy has taken a knock in the wake of Covid-19, recent market activity has shown that there is still appetite for purchasing property. Consumers want to put their money into an investment vehicle that will yield positive returns – and property is it. The stock market is too volatile, and the idea of leaving money in the bank to grow, is quickly losing its appeal – the yields just aren’t high enough and coupled with the tax on the income generated through interest on your investment, you’re not left with much at the end of the day.
“A case study on a R3 million property demonstrates that if one were to pay in a 20 percent deposit on the value of the home (R600, 000) they would earn 76 percent return (R810 939 investment gain over 3 years ) on their equity based on current interest rate, and an average capital appreciation of 7 percent per year. If one were to put that R600, 000 into an interest-bearing account with a bank, one could expect a 15 percent return (R93 993 capital gain over 3 years) with an interest rate of 5 percent,” said Thompson.
With property remaining an attractive investment, savvy consumers will look to invest in key growth areas, like the Sibaya Coastal Precinct, which has achieved an average of 40 percent value appreciation in the last 3 years. These growth areas demonstrate robust long-term planning, sustainability and futureproofing as well as offering a holistic lifestyle.
“People are looking to invest in property at this time, but they want to be sure that their investment will yield favourable returns- consumers can effectively spend less by investing better. Investing better means not blindly investing in property just because, but rather doing some research on what’s available and engaging with developers like us.
“The key factors to note when deciding where to buy include a clear and positive growth trajectory in terms of the area or precinct, the potential for good value appreciation and the provision of desirable and accessible lifestyle elements, and then of course security. These factors, along with buying from a reputable developer who delivers on their word, will put you in the best possible position.
“In South Africa, we are fortunate that our interest rate is currently the lowest it’s been in almost half a century, and it looks to stay pretty stable for the next two to three years, so now is the time to get a home loan – it won’t get better than this," said Thomspon.