Investor Corner


Investor corner, Northern Suburbs, Cape Town

A large part of our business is devoted to finding viable investment options for keen property investors.

Our goal is to source investment properties which offer an acceptable return on investment. Main factors we look at when analysing an investment property:

  • Area

  • Management of the Body Corporate

  • Financial position of Body Corporate

  • Condition of property

  • Levy

  • Profile of tenants mainly occupying units in complex

  • Price growth and rental growth in complex.

  • Latest sales in complex

  • Expected return on investment


EXAMPLE OF SCHEDULE WE HAVE AVAILABLE FOR INVESTORS

 

Buhrein

Buhrein

Uitzicht

Brackenfell

Area

Bella Vista : 1st Floor

Chandelle

Chancery Lane

Forestdale

Accommodation

2 Bedrms, 1 bathrm, 62m2.

2 Bedrm, 1 bathrms  54m2.

2 Bedrms, 1 bathrm, 54m2

1 Bedroom

Asking price

R 839 900,00

R 759 900,00

R 639 000,00

R 385 000,00

Offer price

R 839 900,00

R 759 900,00

R635 000,00

R 380 000,00

Features

Balcony/ braai

Balcony/braai

Great lay-out, finishes

 

Rental income

R 6 850,00

R 6300

R 5500,00

R 4 045,00

Gross Yield

9,78%

9,94%

10,4%

12,77%

Expenses

R 1888,50

R 1 867,00

R1485,00

R 998,60

Levy

R 1 072,00

R 1100

R 790,00

R 550,00

Rates

R 200,00

R 200,00

R 200,00

R 125,00

Insurance

R 0,00

R 0,00

R 0,00

R 0,00

Garden services

R 0,00

R 0,00

R 0,00

R 0,00

Rental Agent Fee (9%)

R 616.50

R 567,00

R 495,00

R 323,60

Water

R 0,00

R 0,00

R 0,00

R 0,00

Nett Return on Investment

R 4961,50

R 3 137,00

R 4 015,00

R 3 046,40

Percentage Return

7,0%

7,0%

7.6%

9,62%

Cash deposit

R 83 990

R 75 990

R 63 900

R 38 500

Bond

R 755 910

R 683 910

R 575 100

R 346 500

Payment*

R 7 598

R 6870

R 5 757

R 3 510

Plus Expenses

R 1 888

R 1 867

R 1 485

R 999

Total cost pm

R 9 486

R 8737

R 7 242

R 4 509

Less Rental

R 6 850

R 6300

R 5 500

R 4 045

Shortfall

R 2 636

R 2 437

R 1 742

R 464

 

 

 

 

 

Occupation

01 February 2016

01 February 2016

Tenanted till end Oct 2015

Lease until 1 Dec 2015


Groups of property investors

Experience showed that there are mainly two groups of property investors:

Group 1: Focussing foremost on Return on Investment(R.O.I)

See above example of a spreadsheet we’ll present for buyers in this group:

Group 2: Looking at the area and condition of the complex. Important to them to see themselves or their kids staying in the complex/ area. Making a more emotional decision than purely making an investment decision based on numbers.

Group 3: Parents looking for student accommodation for sale with the vision of maybe keeping the property as a long term investment property, after their kids completed their studies.

We cater for all groups!

Investment units in Bellville, Investment properties in Parow, Investment apartments in Buhrein, Investment apartments in Durbanville, Investment properties in Tyger Valley, Investment properties in Burgundy Estate will cater for everybody’s needs.

Feel free to scan our website for options available.

I do suggest you send me an email with your requirements to:

pieter@pieterkotze.co.za in order to put you on a priority list when new units are listed.

You’re also welcome to call me to discuss your investment property needs.021 975 5897/ 083 2601932