Buy-To-Let Market: Manor Estates (The Bugle)

If you are looking for a buy to let investment property or an affordable apartment or freehold home within a secure gated community, one of the most important new developments to emerge within the greater Ballito area is Manor Estates.  The property has a beautiful established garden aspect to it and the large lake and conservation area will add exceptional value to the homes and apartments that enjoy these views. When visiting the estate you will notice an old manor house, currently utilized as offices, but will eventually form part of a communal amenity and hotel component of the development. The quality of building is impressive, especially when we consider how competitive the pricing is. You can secure a 39 sqm one bedroom unit for R539,000. The levies payable on this unit would be R234 p.m. as the sectional title body corporate levy, and R650 p.m. as the home owner’s association levy. Rentals for these properties are in demand, and a typical one bedroom unit on the estate are rented at between R4,000 and R4,500 per month. A residential property investment that can deliver a gross rental return of 9% is very attractive and will ignite interest in the buy-to-let market. As Seeff Dolphin Coast we have a property portfolio in excess of R2bn and the most affordable yield generating properties we have come across are these one bedroom apartments at Manor Estates.

The popular 66 sqm two bedroom two bathroom apartments trade from R838,000. These units would have a body corporate levy of R390 p.m. and the same R650 p.m. home owner’s association levy. Other similar units in the scheme have rented between R5,500 and R6,500 p.m. The ground floor garden units are more popular as the garden areas provide an additional living and entertainment space. Parking for the apartments are in terms of under-cover parking bays. When purchasing a property within Manor Estates there is a once of contribution of R3,000 to the estate levy stabilization fund. Of the 122 apartments that have been completed, 43 remain available for sale.

I found the freehold offering at Manor Estates of particular interest. Plots of land range from R379,000 to R599,000 with land sizes ranging from 246 sqm to 374 sqm. As a standard, four floor plans have been provided and purchasers of land have two years in which to complete the home. You are not restricted to using the master developer as the contractor for the freehold homes, but you have to use the appointed architect. The show house is a great way to experience the finished product, and this 119 sqm, 3 bedroom, 2 bathroom home, on an erf size of 298 sqm is priced at R1,295,000. Of the 33 freehold sites released, 15 remain available for sale.

(Author: Andreas Wassenaar, Published in The Bugle, 3Oct2012)