Another Great Property Deal
23% Below Market Value
Investment Property: 5 Unit Complex - Passive Income Generator
4 Occupied, 1 Vacant
Mid Ennerdale, Johannesburg South
After Refurb Value (est):
R 1 750 000
Refurbish cost needed:
R 19 000 pm
R 228 000 pa
25.58% per year
Sourcing fee: 4.5%
Great Investment Opportunity!
This is an excellent opportunity to secure yourself a unique 5 Unit complex in a high rental area. Located in the South of Johannesburg - Mid Ennerdale, this property has is low cost in maintenance and attracts long term tenants. Each unit with 2 Bed, 1 bath and open plan kitchen and living room.
The property is an impressive value for money and long term cashflow. Currently on track for 13.3% ROI (with a potential 16.6% ROI (after filling the vacant unit) Historically, the property has been let to young families and single parents.
The property consists of:
5 Units in a Complex
Open Plan Kitchen and Lounge
7 car Parking spots
Secured with a locked sliding gate.
4/5 Units Occupied
Managed by Tenents (R200 pm)
In the process to be zoned to RES3
Location: Ennerdale - Johannesburg South
The property is located in an ideal residential area close to many local amenities.
The property can currently generate an income as is of:
R 3800 pu x 4
= R 15 200 pm
R 15 200 pm x 12
= R 182 400 pa
However, looking at the market if the property gets just one more tenant, potentially be looking at more in the region of:
R 19000 pm
= R228 000 pa
Buy This Property
Pictures taken by the owner before lockdown, Since then the property has been kept up to date.
Market Analysis: Ennerdale
Ennerdale is a suburb of Johannesburg, South Africa. Ennerdale was declared as a coloured group area under the apartheid regime. Even though apartheid ended in 1994, Ennerdale still remains a largely coloured community.
Property prices vary according to how well the property has been updated. Rents have been rather consistent on the other hand. The analysis shows Ennerdale to be an up and coming community with steady and increasing rents yearly.
Area Property Sales
Market Analysis: Comparison List
MAKE AN ENQUIRY
Purchase below market and resell to realise capital gains of +20%.
To purchase the property for R1,350.000 and rent out to generate for a healthy cashflow
Purchase and refinance after 6 months against the true market value after RES3 Zoning is in place to pull out some of your investment.
You convert the property and Sell as sectional titles and sell as units.
You can be creative and use this as a service accommodation and generate a much healthier income by using the location to your advantage.
Costs to Consider
Mortgage cost at = R8,866.24 pm
Management = R 200 pm (1 tenant pays R3600)
Insurance = R410 pm
Legals = R71 338 Once Off
Sourcing Fee = R60 750
(Fee Calculated at 4.5% of Purchase Price)
CASHFLOW AFTER ALL THE ABOVE COSTS
Managed = R5,123.76 pm = R61,485.07 pm
Capital Required To Get Involved:
Purchase Price = R1.350,000
20% Deposit = R270,000
Legals = R71 338
Sourcing Fee = R60 750
Total Capital Required = R391 338
NB: Assumptions Made
Many Assumptions went into these calculations.
- Expenses Annual Increase = 3%
- Value Appreciation per Year = 3%
- Annual Rental Increase = 3%
- Mortgage Interest Rate = 7.75%
- Down payment = 20%
- Holding Length = 20 Years
- Vacancy Rate = 20%
Long Term View
First Year Income and Expense
Income: R 19,000.00 R 228,000.00
Mortgage Pay: R 8,866.24 R 106,394.93
Vacancy (20%): R 3,800.00 R 45,600.00
Property Tax: R 600.00 R 7,200.00
Total Insurance: R 410.00 R 4,920.00
Maintenance Cost: R 200.00 R 2,400.00
Cash Flow: R 5,123.76 R 61,485.07
Net Operating Income R 13,990.00 R 167,880.00
20 Years Invested
Return (IRR): 25.58% per year
Total Profit when Sold: R 4,284,901.94
Cash on Cash Return: 1,255.14%
Capitalization Rate: 12.44%
Total Rental Income: R 4,901,156.31
Total Mortgage Payments: R 2,127,898.68
Total Expenses: R 390,157.84
Total Net Operating Income: R 4,510,998.47
MAKE AN OFFER OFFER ON THIS PROPERTY NOW!
by Calling Neville Mpumelelo
(073) 732 3432
Who are we ? Best Property Deals In SA are a group of dynamic property professionals with well over 3 years of combined expertise in property, who have collaborated on a number of property projects together and with others.
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Disclaimer - IMPORTANT NOTE TO PURCHASERS:
We endeavour to make our particulars accurate and reliable, however, they do not constitute or form part of an offer or any contract and none is to be relied upon as statements of representation or fact. Any services, systems and appliances listed in this specification have not been tested by us and no guarantee as to their operating ability or efficiency is given. All measurements have been taken as a guide to prospective buyers and investors only, and are not precise. Please be advised that some of the particulars may be awaiting vendor approval. If you require clarification or further information on any points, please contact us, especially if you are travelling some distance to view. Fixtures and fittings other than those mentioned are to be agreed with the seller.
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