News

The first initial public offering for spring 2021 has made its debut on EasyProperties, and it's a beauty.

We're finally venturing into Kwa-Zulu Natal property with Ballito Groves as our first KZN-based asset. The initial public offering officially opens on Saturday, 4 September 2021.

EasyProperties' investment committee has put together an investment thesis to highlight why we're excited to bring Ballito Groves to the community. Check it out:

Potential for Capital Appreciation

Now that Ballito has been one of the top performing areas in the country with residential property prices growing in excess of 5% per annum for 8 of the last 10 years – see table below. Owners of residential real estate in Ballito have seen material increases in the value of their properties in this period.

There has been an influx of home buyers into coastal towns in Kwazulu Natal in recent years as buyers seek improved quality of life and proximity to the ocean. There has been significant investment in infrastructure in Ballito (shopping centres, schools) over recent years and we expect Ballito to remain a favourite destination for property buyers at the coast.

Verdict: Strong capital appreciation potential

Potential for Rental Income

Property ownership costs in KZN are high relative to some other parts of South Africa and this has an effect on the net rental income earned on investment properties.

In the case of Ballito Groves, EasyProperties has received a 2 year rental guarantee from the seller that guarantees investors a net rental yield of 6,5%.

 
Ballito Groves - KZN's finest

This is a healthy rental yield for this location and provides steady income for the first two years of ownership. We place a high value on the certainty of this rental income and it allows us to comfortably wait for the value of our property to grow.

Verdict: Steady rental income

Entry Price and Rental Demand

As we discussed above, Ballito has seen material residential property price growth over the last 10 years. This is great for owners of property in Ballito but it can make it difficult for new buyers in Ballito to afford to buy at current prices.

Ballito Groves represents the lowest entry price point into Ballito.

At the EasyProperties discounted purchase price of R1 198 500 per 2 bedroom unit, this represents the best value 2 bedroom units currently available in Ballito. This entry price also means that these are the most affordable units from a rental point of view and we therefore expect strong rental demand for our units at Ballito Groves.

Verdict: Lowest entry price and high rental demand

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