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Kloof: The ideal location for buy-to-let investments
Category Property News
Named after a deep ravine formed by the Molweni stream, Kloof has evolved from a modest town to one of prestige, defined by luxurious homes and growing commerce.
The upmarket suburb forms part of the greater Durban area and comprises of the Upper Highway Area which includes Hillcrest, Forest Hills, Gillitts, Winston Park and Forest Hills. The area is intersected by the M13 highway, making journeying into the city quick and hassle-free.
The suburb’s innate luxury, similar to that of uMhlanga and La Lucia, has made it a prime destination for residential homes, and recent trends indicate that buy-to-let investments are growing in popularity in the area.
Demand for rentals
Demand for rentals have increased for both apartments and freestanding homes with prices ranging from R8000 - R25 000 for a freestanding homes and R3000 - R5000 for a garden flat per month.
Homes in the area sit amid “leafy” backdrops and are privileged to a cooler climate in the generally humid province of KwaZulu-Natal. For these reasons, house prices have remained resilient and therefore people are choosing to invest in the area.
Lew Geffen Sotheby’s International Realty has realised the investment potential in Kloof and have uncovered stellar homes that exude modern living.
Currently on the market in Kloof are beautiful family homes that range in price from R1.1 million to R3.65 million. Our new listing is sole mandate, overlooking the Kloof gorge, this face bricked family home is spacious and ideal for a small-family. It comprises of 4 bedrooms and a separate workshop perfect for a handyman or guest-room as it can easily sleep two people.
A slightly bigger home with 6 bedrooms is selling at R3 250 000 and is most suited for a larger family who seek to live in luxury.
The benefits of buy-to-let
Kloof’s latest trend indicates that buy-to-let properties are growing in popularity, this means that many South Africans have identified a key investment potential, one that has proven to be very lucrative.
The reason for this is that buy-to-let properties in the right areas, such as Kloof, are accompanied with a range of benefits.
Firstly, this type of investment shows long-term capital growth mainly due to demand outweighing supply in the housing market. This means that buy-to-let investments almost always achieve positive capital growth. In the South African property industry, residential property has seen a minimum growth of 45 percent, making it one of the most resilient assets.
Secondly, buy-to-let properties are more often than not bought with a bank loan. This means that the investor’s capital gains and money collected through rent are acquired on money that is technically not theirs.
To make the most of such an investment it is best to view it as long-term and thus, investors must choose their properties on its ability to appeal to tenants several years down the line in burgeoning suburbs with growing economies. For this reason, location is imperative and it is essential to identify trends affecting various areas.
Lew Geffen Sotheby’s International Realty has uncovered the best homes in Kloof that are perfect for those looking to start afresh in the ever-growing suburb or as a buy-to-let investment.
Author: Lew Geffen Sotheby’s International Realty