Deposit and bond – this option allows you to put down a deposit and the balance would be covered with financing. E.g. 10% deposit with 90% bond approval. Your 10% deposit will sit in an attorney’s interest bearing trust account, until transfer.
Foreign buyers / non-residents can typically finance up to 50% of the purchase price locally – and generally opt for the cash purchasing method below.
Cash purchase – here you’ll need to put down a 30% deposit, which is held in the attorneys trust account, accruing interest until transfer. No further capital is required until closer to the building’s completion. A 10-30% deposit is required for your purchase. This deposit will be securely held in our attorney’s trust account, where it will accrue interest for your benefit until the building in completed.
The second purchasing method we offer, is our renowned Co-investor Model – where we present an opportunity for investors with capital to unlock financial benefits. The investor agreement is an alternative to our standard off plan sale agreement, whereby the investor needs to put in capital upfront to unlock a reduced purchase price.
This option allows you to put down a down a payment of between 20% and 35% of the apartment’s purchase price, and in return, receive an up to 12.25% price reduction on the total apartment price. This translates into a 35% return on investment.
| Co-Investor | 20% Down Payment | 30% Down Payment | 35% Down Payment |
|---|---|---|---|
| Original price (Inc VAT) | R6 075 000 | R6 075 000 | R6 075 000 |
| Percentage paid to us | 20% | 30% | 35% |
| Value paid to us | R1 215 000 | R1 822 500 | R2 126 250 |
| Percentage of benefit given (1:0.35% Ratio) | 7% | 10.50% | 12.25% |
| Value benefit given | R425 250 | R637 875 | R744 188 |
| Revised Purchase Price (Inc VAT) | R 5 649 750 | R5 437 125 | R5 330 813 |
| Amount owed on completion | R4 434 750 | R3 614 625 | R3 204 563 |
To analyse the investor benefit received vs the upfront investor payment required - this benefit boasts a 35% return on investment and further translates into a 25% IRR over the 16-month investment period.
For more information on securing a home loan, you can visit El Casa's website or contact Jacques du Toit via +27828251263
If you would like more information on our purchasing methods, please call us on +27 66 186 1658, or email via sales@blok.co.za and a Sales Consultant will be in touch with you.