Synonymous to success, Capitol Towers Limited (member of the esteemed Sanken Group) continues adding value to Sri Lanka’s Construction and Real Estate industry by introducing ‘Staircasing with Capitol TwinPeaks’, the latest innovative homeownership option made available with the group’s flagship tier one project. Staircasing is a scheme which makes it easier for buyers to get on the property ladder and it was first introduced as part of the UK government’s Help to Buy initiative in 2013. Staircasing is now a globally recognized real estate homeownership option and is practiced in key markets including Singapore, Dubai, Middle East, USA and Australia to name a few.
The scheme works this way: instead of buying their homes outright, homebuyers opt to purchase a share in the property and gradually increase their stake—effectively allowing them to “Staircase” their way up to full 100% ownership.
Given the stringent market conditions coupled with rising inflation, options for homebuyers and investors are limited. Rapidly rising construction costs have resulted in a spike in property prices. The cost of borrowing is at an all-time high. The cost of living is increasing, earning capacity has been somewhat stagnant and the value of currency has depleted.
Being a responsible developer, Capitol Towers introduced Staircasing with Capitol TwinPeaks to facilitate a flexible way for all homebuyers and investors to utilize their funds today while opportunities are still available.
There is a step-by-step procedure to enjoy Staircasing with Capitol TwinPeaks:
1. Pay 50% of the apartment price
2. Occupy or Rent out
3. Pay balance 50% over five years,
or Pay total balance 50% in five years
*T&C Applied
Homebuyers and investors have usage rights to occupy or rent out the apartment after the first 50% installment has been fulfilled. The balance share of the asset will be under Capitol Towers Limited, until the full 100% of the price has been paid.
Generally, the majority of homebuyers and investors facilitate their purchase with the assistance of a bank by obtaining a mortgage facility. In order to initiate a mortgage facility, a minimum down payment of 20% to 30% is required and the balance funds are then disbursed. Repayment of the capital plus interest is spread over a number of years and the financial commitment starts from day one.
Staircasing allows homebuyers and investors three repayment options; 1.) Reduce the balance due and increase their share over five years 2.) Settle total balance in five years or 3.) Jointly resell the apartment and enjoy their share of the capital gain.
Capitol TwinPeaks (another successful project by the Sanken Group) is a tier one luxury complex featuring 50-storey twin towers, 475 luxury apartments, 40,000 sq.ft of Common and Commercial Areas, Sri Lanka’s highest sky lounge and South Asia’s highest sky bridge.
Capitol Towers Limited is developing Capitol TwinPeaks on-behalf of the Sanken Group, an esteemed international developer maintaining operations in 9 countries in 3 continents, and who is responsible for the majority of high rise developments in Sri Lanka.
Due to high inflation and unfavorable market conditions it is unlikely that Sri Lanka will see new projects being introduced in the market for the foreseeable future. Keeping this in mind, the smart investors who capitalize on the opportunity with Staircasing will reap the benefits in the years to come; through high capital gains and a low supply advantage.
