Perfect way to create residual income
Experts in the field of Industrial property are unequivocal in their stance that Somerset West presents some of the best opportunities for investors looking to create an excellent residual income.
While recent interest rate hikes and the strictures of the National Credit Act caused a slow-down in the property market, premier industrial and commercial developments may be the best way for investors to create a residual income or pension.
Graham Alexander, Broker / Owner of the RE/MAX Commercial City franchise, based in the Western Cape, says the scarcity of available land in the province make developments like the new Asla Business Park venture outside Somerset West an ideal opportunity. The development is situated opposite the Somerset West Business Park near to the Somerset West Mall and Motor town.
Broker Alex Karsten from RE/MAX Commercial City is bringing the Asla Business Park development to buyers, with the introduction of Tailormade Business Park.
He says: This light industrial development falls in a specific niche market of sizes between 250 and 300 square meters. It is ideal for second tier investors, including retired persons who have liquidity and are seeking secure long term returns and capital growth. Nine of the 16 units have already been secured.
Asla Business Park is a secure community, with 24 hour security, in close proximity to the N2 highway and business nodes.
The project manager from developers Asla Devco adds that the availability of labour in the surrounding areas and the fact that it is an upmarket light industrial park, should ensure high interest from investors.
According to Asla, the erven at the development are ready for transfer and the first building will be completed in early 2008.
For further details:
Contact Alex Karsten at 083 657 1756
With an initial down-payment of R600,000 and R740,000 commercial bond payable over 10 years on a total investment of R1,340,000, the rental will immediately cover the bond and levy payments within the first year. With escalations in rentals at 9% per annum, a positive cashflow can anticipated from the second year.
Concludes Alexander: The type of businesses attracted to the development would be those involved in warehousing, since the proximity to the highway will ensure ease of access to the airport via the N2. It is also one of the few opportunities for owner occupiers to invest in their own building in a prime location.