Investment Opportunities at Oxford Properties
Overview
Zimbabwe’s property market operates within a complex economic framework, characterised by limited property financing, an unstable currency environment, muddled local authority red tape and policy inconsistency. Generally, it presents a lot of uncertainty for would be property developers. Notwithstanding the above factors characterizing the sector, the property market has witnessed unparalleled resilience, marked growth and has become an impetus for growth across all other sectors within the value chain. Investment returns have been impressive with capital gains averaging 15% to 25% per over the past five years and rental yields coming in at between 7% to 9% per annum.
Given the foregoing attributes in the operating environment, one needs an accomplished and experienced property partner to realise their dream. Oxford Properties meets that requirement, our drive in the sector is premised on offering property solutions to home seekers and investors a wide range of modern contemporary options, ranging from stands where investor can custom make their dream residential of investment homes to fully completed ready for occupation apartments, all conveniently located to suit the needs of our diverse clients and modern day living. The apartments are feature an open floor plans prioritizing aeration, cleanliness, large windows for natural light, neutral colour palettes appropriate for relaxation, and a whole suite of integrated kitchen appliances.
Investment Opportunity
Despite the challenges, the property market in Zimbabwe presents a promising investment opportunity. With a growing economy and the population expected to reach 18 million by 2030 with urban areas projected to accommodate 10 million residents by the same year, the housing stock is under pressure, as supply is evidently lagging housing demand. Demand patterns within urban areas is showing strong affinity for suburban living, apartments, gated communities. The bulk of the demand is seen coming from the millennials mainly occupying the middle-income strata of the economy. 15% demand can be attributed to the Northern suburbs and over 25% in the western areas. Through government initiatives to attract foreign investment, the real estate sector offers potential for investors seeking long-term returns and portfolio diversification.
Why invest in Oxford Properties?
At OxProp we go beyond offering property solutions we create lasting legacies for future generations, through:
- Offering security through selling land or property with title, which guarantees, our clients legal rights to the property, access to financing and ease of transfer when one resells the property. We have facilitated title for over 70% of household at Aspindale Park. And with our projects at Aspire Heights and Jacaranda the process is at various stages with our conveyancers.
- All our projects be it Aspindale Park, Aspire Heights, Jacaranda Heights and Borrowdale Park are conveniently located in close proximity to shopping centres and amenities such as schools, police stations and clinics.
- Professional Property Management and Concierge services.
- Return on investment or property yield is one of the most critical components of the entire property investment process and on all developments, investors are assured of returns of between 9% to 11 %. At Aspindale Park and Aspire heights our clients are earning rentals of between of USD$550 to USD600 per month. The expected rental income for Jacaranda Heights (unfurnished) is an averageUSD2150/month (inclusive of levies) presenting a return on investment of 7% – 9%.
- Capital Appreciation- plays a crucial role in evaluating the performance and potential profitability of an investment property. It is a measure of how much the market price of the property has grown since its original purchase. Capital appreciation signifies the potential profit that can be realized by selling the property at its current market value. It is an important aspect of long-term wealth-building strategies, along with income from rental yields and other sources. With stands at Aspindale selling at well over 65% of their original price of $85/ sqm, and with prices of finished properties having grown from an average of USD55 000 to USD85 000 (3 bedroomed house) and corner houses with 4 bedrooms moving from an average of USD75 000 to USD105000 over a period of 5 years, and are expected to increase with the rise in demand. And with this in mind we expect our stands at Borrowdale Park to follow the same trend with the stands and properties appreciating at around 25%-35% of their current value.
- However, capital appreciation is subject to various factors and with the prime location and its contemporary style of the Jacaranda Heights gated apartments, we anticipate an increased capital appreciation growth rate of over 8% in the long run.
- Diversification: Real estate adds a tangible asset to your investment portfolio, reducing overall risk. With our portfolio of properties, we offer diversification both within the property market and also an alternative to financial market investments.
- Inflation Hedge: With the levels of capital appreciation and investment yields on all our property investments opportunities often outperform inflation, preserving and enhancing wealth.
Overall, our diverse portfolio has created safe havens for over 1,000 families and our oxford properties clients are happy with the good returns they have realised on their investments.
FAQ
What are the sizes of stands on offer?
We have various stand sizes. Some as small as 198sqm right up to 360sqm.
What services will be offered?
- Tar roads with solar street lights
- Water, sewer & electricity connection
- Security fence around the perimeter
- Schools, Clinics, Churches, Shops and Service stations to be developed
- Connection access to high speed fibre internet
- Access to pre –approved house plans, building expertise
What is the price of the stands?
The price of each stand is determined by the size of the stand, please contact our sales team for more information.
info@aspindalepark.co.zw
What payment terms are on offer?
Various payment terms are available, please contact our sales team for more information.
What do I need to purchase a stand?
- Identificaiton document
- Proof of Address
- Payroll slip/proof of income (if buying on credit)
- Bank statements (if buying on credit)
When am I going to get title deeds in my name?
The title deeds will be processed in your name when the following is obtained:
- Certificate of Compliance in respect of the subdivision permit for works completed by developer
- Receipt of full purchase price from the purchaser
- Settlement of all transfer and conveyancing fees, levies and taxes by the purchaser
Rates clearance certificate to be obtained by purchaser.
What are the costs for obtaining title deeds in my name?
Generally, there are legal costs and taxes to be paid as follows:
- Registration Fee is fixed at US$20.
- Disbursements are a fixed at US$50.
- Stamp Duty is calculated as follows:
Amount Ranges Rate
1st US$5,000 1%
Next US$5001-20,000 2%
Next US$20,001 – 100,00 3%
- Conveyancing Fees
Amount Ranges Rate
US$10,000 & below US$400
US$10,001 – 250,000 4%
Where do I find your lawyers handling the processing of title deeds?
Our lawyers are Coghlan, Welsh & Guest.
What happens to my stand upon my death?
The ownership of the stand will be dealt with according to your will and the law relating to deceased estates, wills and inheritance in this country. However you can opt for an insurance product which pays off all outstanding obligations in the unfortunate event of your demise. Your survivors would therefore not need to worry about taking over the obligation to pay installments. Please contact your bank or insurance broker for more information.
What conditions do I have to fulfill before I start building?
In order to take possession of the stand two conditions must be fulfilled:
- City of Harare must have certified that development work has been completed according to the sub division permit.
- The purchaser must have paid at least 75% of the cash price for the stand, but subject to the approval of the Developer on the basis of the track record on paying installments.
Where can I buy my building materials?
Aspindale Park will have all the resources required for building within the development, offering, stone, bricks and cement at competitive prices to save on transport costs. Aspindale Park also has resident expertise to assist with the building process where residents require.
There will also be a large number of shops to provide all necessary inputs.
Do you build houses for buyers of stands?
There are a number of pre-approved housing plans which can be used to build your house at Aspindale Park within the required regulations. Aspindale Park has advisers on building, architecture, and finance to assist you in however we can in building your dream home. We also construct houses, churches, crèches and schools at an affordable management fee. For more information please contact us info@aspindalepark.co.zw
Do you have a sub division permit?
Subdivision permit number SC/WR/41/16 dated 25 Nov 2016 was granted for the project by the City Of Harare and copies are available for inspection at our offices.
When do you expect to finish development work for all the stands?
The contracted work has now commenced and we envisage that development will finish by end 2017.
