How Paying 16% of the Purchase Price Can Secure Your Future
Are you concerned about your retirement? You're not alone. Statistics show that a staggering 95% of people cannot retire comfortably at the retirement age. This is mainly because they haven't built enough passive income to cover their living expenses. But there's a solution that could change your future: investing in property. Let’s explore how investing in a studio unit at Silverviews in Haasendal Estate can be your "pension plan" that outperforms inflation over time.
Why Silverviews Studio Units?
Silverviews consists of 72 exclusive apartments situated within the prestigious Silverstone complex in Haasendal Estate. Residents here share state-of-the-art amenities with the upmarket 127 own-title houses, valued between R1.9 million and R4 million. These amenities include:
A clubhouse: Perfect for social gatherings and community events.
Pool: Enjoy a refreshing swim any time of the year.
Gym: Stay fit and healthy with top-notch gym facilities.
Pickleball courts: Engage in this fun and growing sport.
Beautiful green spaces: Relax and unwind in lush, landscaped areas.
Coffee lounge and entertainment areas: Ideal for casual meetings and leisure activities.
These modern, high-end apartments are poised to ensure sustainable tenant demand for the foreseeable future. Let's dive into the investment analysis for these studio units.
Investment Analysis Simplified
Assumptions for Calculations
Here are the key assumptions used in the calculations:
Purchase Price: R981,350
Mortgage: 100%, 30 years
Interest Rate: 11.75%
Inflation: 6%
Capital Growth p/a: 7%
Rental Income Growth p/a: 8%
Here is a short Investment Analysis Video of the Studio Apartments in Silverviews
Understanding the Monthly Shortfall
When you invest in a property, there might be a period when your rental income doesn't cover all your expenses. This is known as the "monthly shortfall." For the Silverviews studio units, the initial analysis shows a monthly shortfall, which is the difference between the rental income and the total expenses (including mortgage payments, levies, rates, and rental commission).
Breaking Even After Year 6
One of the key highlights of this investment is that you break even after 6 years. This means that after 6 years, your rental income will cover all your expenses, and you won't have any monthly shortfall. By this time, the cumulative cashflow (total money you have paid out minus the money you have received) reaches a positive balance.
Shortfalls Up to Breakeven - What You Actually Pay
Although the purchase price of a Silverviews studio unit is R981,350, you will only pay a total of R161,200 over the first 6 years, which is about 16 % of the purchase price. After this period, the tenant's rental payments will cover all expenses, including the mortgage bond, levies, rates, and rental commission.
Building Equity
Equity is the difference between the property value and the outstanding mortgage balance. At the breakeven point (after 6 years), your equity in the property will be substantial, giving you a solid financial foundation.
Long-Term Gains
By the end of the 30-year mortgage term, the property is projected to be worth approximately R7,470,286. Not only will you have a high-value asset, but the property will also generate significant cashflow, with a net income of R56,558 per month, providing you with a steady stream of passive income well into your retirement.
A Secure Financial Future
Investing in Silverviews studio units offers a promising path to secure your financial future. It’s a tangible, appreciating asset that not only covers its own costs after a few years but also builds substantial equity and generates cashflow.
Call to Action
Don’t wait until it’s too late. Now is the time to take action and invest in your and your family's future. Contact Christo at 082 4949 255 or christo@houseofrealtors.co.za for more information or to arrange a personal tour. Alternatively, complete the short details form, and we will contact you as soon as possible. Click and register here: https://www.haasendalestate.co.za/buy-to-let-haasendal
Secure your financial future with a Silverviews studio unit at Haasendal Estate – the perfect investment for sustainable passive income and long-term wealth.
Please review and consider the our legal disclaimer in the downloadable brochure before making any investment decisions.
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