Directives and Prerequisites
for Commercial Property Investment

We all know the property adage , location, location, location – so, obviously, location belongs at the head of any list of real estate investments. As a commercial area, Ballito has so much to offer where locality is concerned. Its proximity to the airport and harbours immediately motivates it as a desirable situation from a commercial point of view. And as a young, forward-thinking business community, North Point offers you an ideal location and much more.

In the light of Covid-19’s negative effect on the economy keeping a cool head when considering commercial property investment is essential. Here are some of the prerequisites to consider.

The earning potential of investment in commercial over residential rentals is far greater. Depending on the area, commercial properties generally offer an annual return off the purchase price of between 6% and 12%, whereas house properties seldom yield more than1% to 4% .

Affordability

So far this year, the South African Reserve Bank has lowered the interest rate by 300 basis points making investment more affordable for the average real estate investor. However, focusing on the bond repayment alone without giving due consideration to other costs would be a mistake. Rates, levies, utilities, security and maintenance must be taken into account, as well as considering the implications when interest rates rise.

Bear in mind when making the decision to purchase as a business occupier, or as an investment, that the municipal rates paid by the previous property owner will not remain static but will be based on the purchase price of your property. Also, weigh up whether a large deposit at the outset, which would obviously decrease the bond repayment, would actually be of more benefit to your business should you choose to retain the cash. Investment buyers are looking to maximise capital growth through income producing investments, while on the other hand, an owner-occupier can cap costs by purchasing a property limiting rental escalations for years to come and secure tenure for the business.

Utilities

Knowing that South Africa is facing increasing problems with utilities, especially in older, more established areas, where the infrastructure is aging and therefore unreliable, check the dependability of the water and electricity supply to the site you intend to purchase.

Security

Does the land or building you are planning to buy have the security you need? Ascertain, as a once-off expense, whether electric fencing is all that is needed to protect your premises, or whether the installation of more complex security would be necessary.

Maintenance

Should you choose to buy an existing building make a careful assessment of its state of repair. It is easy to look at the bargain price of the initial purchase only to find the costs spiralling when it comes to re-wiring and re-roofing etc.
 
Whether your property purchase is intended for you as owner/occupier, or whether it is for investment purposes, North Point Ballito offers prime sites in a rapidly expanding area of Durban’s North Coast. Sites are available for industry, offices, factories, warehouses, workshops and other specialised properties.

Sites for
businesses big
& small.

It’s all about the right location

Market shifts always mean new opportunities. The trends are clear: market position and location are going to increasingly important in reaping the opportunities emerging today. North Point Ballito brings you a range of advantages:

  1. You’re minutes from the airport
  2. You have easy access to the N2, R102 and two international harbours (Durban Harbour 40 minutes, Richards Bay 90 minutes)
  3. A location opposite Ballito’s New Town Centre
  4. Upgraded roadways and electrical substation
  5. A major pool of multi-talented people within a close commute
  6. The centre of a growing metropolis linking Umlhanga, La Lucia, Ballito and Tongaat
 What North Point Ballito provides
  • 24 hour surveillance and perimeter security
  • Engineered double-lane road network
  • Excellent visibility from the N2 & R102
  • Architectural consistency, ClearVu fencing and attractive urban landscaping
  • 51 serviced platforms covering 380,000sqm
  • 14ha of green and indigenous space

With flexible zoning, a wide range of site sizes and features to choose from and an affordable down payment to secure your spot, you’ll be part of a community of innovators in Ballito. Keen to know more? Drop your details below and arrange a site visit.

Get in touch

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