Property Details
This investment opportunity involves acquiring a prime piece of real estate located in a desirable area of Bluff, which comes with approved plans for the construction of 42 residential units, each measuring 60 square meters. This project is ideal for an investor looking to capitalize on the growing demand for affordable housing in the region.
### Property and Location
- *Location:* Bluff, a well-established suburb known for its coastal charm and proximity to Durban.
- *Land Size:* The property stands at 3155 square meters, enough to accommodate 42 units, with ample space for parking, communal areas, and green spaces.
- *Zoning:* The property is appropriately zoned for commercial development, ensuring compliance with local building regulations.
### Development Plans
- *Unit Specifications:* The approved plans are for 42 residential units, each with a floor area of 60 square meters. These units are designed with modern living in mind, featuring open-plan layouts, two bedrooms, a bathroom, and a kitchen-living area.
- *Construction Readiness:* With the plans already approved, construction can commence almost immediately, reducing the time to market and increasing potential returns.
- *Infrastructure:* The site is prepared with necessary infrastructure, including road access, water, and electricity connections.
### Financial Projections
- *Total Investment:* The property and approved plans are available for a purchase price of R4,500,000. This price includes the land and the approved architectural designs, representing a turnkey opportunity.
- *Rental Income Potential:* Once developed, the 42 units are projected to generate a combined monthly rental income of approximately R300,000. This estimate is based on current market rental rates in Bluff for similar-sized units, averaging R7,100 per unit per month.
- *Return on Investment:* Assuming full occupancy, the annual gross rental income would be approximately R3.36 million. This provides a strong return on investment, particularly given the rising demand for housing in the area. Alternatively each unit could sell at an average price of R750 000, generating a total income of R31, 500 000.
### Market Outlook
- *Demand:* Bluff is experiencing a surge in demand for residential units, particularly those that are affordable yet modern. This development targets middle-income earners and young professionals who are looking for convenient, well-priced living spaces.
- *Capital Appreciation:* Bluff's real estate market has shown consistent growth, making this not only a lucrative rental investment but also one with significant potential for capital appreciation over time.
### Summary
This investment offers a combination of immediate rental income potential and long-term capital growth. With approved plans for 42 units ready to go, the development process is streamlined, allowing investors to quickly capitalize on the demand for housing in Bluff. The projected rental income of R300,000 per month positions this as a highly lucrative opportunity in a thriving market.