With construction at Lush back in full swing, our second webinar focused on the property market, future forecasts, how to maximise on your property investment, the process for Lush owners once construction is complete as well as advice about living, selling, and renting at Lush
Here is a recap of some of the key points from our panel.
Dave Perks, Co-developer of Lush
“Our construction teams are back on site and construction is in full swing. As we speak, paving is being laid and the exterior of the building is being painted – there is a lot of action happening on site -you’ll see a radical transformation over the next few weeks. We are also very excited to tell you that our fully furnished show units will be complete and ready for viewing by the end of the month, and we will begin the handover of Lush units around the middle of August this year with all units handed over to owners by mid-November.
The currently low interest rate really puts homeowners in a favourable position; for example, on a home loan at the interest rate of 7.25%, you could probably earn a 7.25% net yield on your investment in year 1. On an 80% or 90% loan, your rental yield and bond instalment will be very close in value. What’s even better is that anything you pay into your home loan over and above the instalment, will go to servicing the capital loan amount.
I would advise anyone who bought at Lush when the prime rate was 9.75%, to keep paying the value equivalent into their bond. Even though the low interest rate is really appealing, by paying more than you need to on your bond, you will start paying off the capital loan sooner and effectively shorten the term of your home loan.”
Devon De Lange, Head of Development Sales
“One of Elaleni’s most unique facilities, the Forest Clubhouse, is fully furnished and is already being used by residents. The Elaleni Beach Club is now top of our priority list and we estimate we are about 12 months away from establishing that once zoning is approved. We will break ground on the Leisure Centre in the next few months while the co-working space at The Gates is finalised. We are excited to be able to watch Lush coming to completion, and Elaleni really starting to take shape. The true value of Lush and Elaleni will come to light as more and more features are unlocked within the estate; therefore I would advise any homeowners to hold on to their Lush unit for another 18 months to 2 years, and not to resell after transfer. Those who are looking to rent their units are in a good position, especially for rentals under the R20 000 mark as there is limited long-term rental stock at that rate in the area. I’m really excited to tell you that we have partnered with Altido to bring Lush owners a rental management platform that will handle the rental process from start to finish including listings and bookings. Altido has a stellar reputation and is Airbnb’s biggest partner in Europe, and they have identified the North Coast of KZN as a growth area. This value-add will undoubtedly benefit Lush owners, and we will be engaging with them about this service very soon. The momentum on site has garnered a lot of interest, and as a result we have concluded 3 sales at Lush in the last 2 weeks- we now have only 23 units left for sale.”
Clifton Smithers, Co-developer of Lush
“We have committed to fully furnishing a unit in every block so that owners and interested buyers can come get a first-hand feel for what Lush is like. We have already completed a ground floor unit in the Fever block and will complete the additional show units in the next 2 to 3 weeks. The furniture package we offer to our owners is flexible in that people can opt to lease furniture for their rental unit over a 36-month period or go for a tailored package if they want, be that bedding or appliances – we have partnered with Smeg to offer competitive rates on this. Offering furniture packages is a trend that is growing globally, especially in growth areas like the North Coast, and a few of our recent buyers opted to take furniture packages with the purchase of their units.”
Tina Halstead, Partner at Cox Yeats
“Off-plan purchasing equates to huge savings- you are saving on your transfer duty costs, which at Lush can be anywhere between R80 000 to R250 000. By buying directly from the developer you won’t have to pay the VAT on purchase and other fairly hefty costs are taken on by the developer. What’s also beneficial about buying off-plan is that you are only required to pay a small deposit to secure your unit until transfer occurs, which means that a large chunk of your money is not just sitting in the developer’s bank account earning interest, and that you don’t have capital tied up during the construction period. In comparison to similar developments on the market, Lush’s deposit is comparatively lower and really competitive, and this is hugely beneficial too.”