Regular Sea Point reader PJ writes:Construction on the Ballinrobe on High Level Rd looks to have stalled. The site is locked up and trash is piling up behind the gate. Stick a fork in it... it's done. It's now just a giant hulking concrete jumble of boxes visually stinking up High Level Rd.
3 comments:
So how does that work then as a developer? Surely you are still paying off the mortgage on your land purchase and construction costs incurred to this point at a ruinous rate of exchange. The off-plan purchase revenue must be long gone as well.
The longer the thing sits in the present state, the more money you pay...
I stand to be corrected but logic surely dictates that you finish it as soon as to at least rent out some units to mitigate costs?
Nice. If you google for "ballinrobe cape town", Cape Town Property Bubble articles is the second result.
@anonymous most likely no-one wants to lend the developer more money to finish it. Or the expected rental return is so low that it's not worth finishing at all...
When I see one of these projects in a stagnant state, I always wonder how many people lost money buying off plan. How these developeres get people to buy someting that does not exist I can not understand.
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