Palm Springs is a newish development that was unfortunately built in Brooklyn. There are 354 units and of those 146 belong to a Trust, CC or (Pty) Ltd. Can you say 'specuvestor heaven'?Reader JT writes:
Bought a unit here in 2008 to let it sleep for a few years for about R 450 000
Initial levy payable to Permanent Trust has now been increased by 50% from R 300 to R 502.
Reason for this is that they never accounted for the behaviour of the low budget/illegal immigrant/5 people in a single room scenario – not to mention the gym equipment being vandalised and communal areas falling apart.
I currently let my unit out for R 3200 a month
It was a bad choice as an investment – time will tell if it works out
So bought for R450 00 and currently reanting for R3 200 gross, with levies includes it's R2 700/month net.
If you bought it for cash you're earning 7% return. If you didn't put at least R150 000 down (that's a 33% deposit) you're losing money and judging by the way the levies are going up, will continue to lose money for a while.
However there seems to be a slight problem with the rates accounts. JT continues:
Turns out the developer never properly registered the units in individuals names – so the R 4000 in rates that I paid up to Feb last year to what I was told was my account is now frozen and I have to prove that I paid it.
I apparently have a new account that is in debt to the tune of R 4500 – but I have still to receive a rates statement.
Just a little legal note, if rates are not up to date the council will not issue a rates clearance certificate and no sale can proceed. If you need to sell you're going to have to get the bottom of that rates story.
