In response to South Africa’s rising interest rate levels, Western Cape-based property developer, Dave Harris Properties, has announced a fixed interest rate of 13% for a one-year period on its latest estate development, Greenwood in Somerset West’s new gated suburb, Schonenberg Estate.
Harris says the move is beneficial to both purchaser and seller. “The current market is slowing down sales but building costs continue, and will continue, to rise for developers in the foreseeable future. By fixing rates on a project like Greenwood, we continue the development momentum within the Schonenberg Estate.”
“We also need to bear in mind that we are currently in a low property cycle phase.” Harris cites a saving of up to R200 000 on building costs for Greenwood investors taking up the fixed rate option, based on building costs continuing to rise between 18 - 25% during the current phase.
Homes in Greenwood start at R1,45m.
Aside from the security aspect, Greenwood is being located within walking distance of the Waterstone Village Shopping Mall. In addition, homeowners also get to enjoy the benefits of the sprawling 66 hectare estate with its abundance of walking paths, proximity to natural fauna and small lakes. Planned local amenities also include a nearby gym set to open in 2009.
Harris says the Schonenberg estate has enjoyed consistent development growth since its launch in 2005 with Greenwood is set to continue this trend. “More than 200 house plans have been submitted in the past 18 months and over 58 homes have already been completed.”