Located in awell-maintained complex on Stanza Bopape Road, Arcadia, this2.5-bedroom apartmentpresents an excellent investment opportunity. With minor modifications, it can beconverted into a 4-bedroom unit, significantly boosting itsrental income potentialtoR12,000 per month.
📌Key Investment Details:
✔Purchase Price:R650,000
✔Monthly Levies:R2,153
✔Bond Repayment:R6,800 (estimated)
✔Projected Rental Income:R12,000 per month
✔Once-Off Legal Costs:R50,000
🔢Investment Returns Breakdown:
📊Return on Investment (ROI) Calculation:Total Initial Investment:R650,000 (purchase price) + R50,000 (legal costs) =R700,000Annual Rental Income:R12,000 × 12 =R144,000Annual Expenses:(R2,153 × 12) + (R6,800 × 12) =R107,556Net Annual Income:R144,000 - R107,556 =R36,444ROI:(R36,444 ÷ R700,000) × 100 =5.21% per year
💰Cash-on-Cash Return (CoC):If financed with100% bond, initial cash investment isR50,000(legal fees).Annual Cash Flow:R36,444CoC Return:(R36,444 ÷ R50,000) × 100 =72.89%
🏢Capitalization Rate (Cap Rate):Cap Rate:(Net Operating Income ÷ Purchase Price) × 100Cap Rate:(R36,444 ÷ R650,000) × 100 =5.61%
🔑Why Invest?
✅Prime locationin Arcadia, close to universities, businesses, and government offices.
✅Strong rental demand, making tenant placement seamless.
✅Significant income potentialthrough a simple unit conversion.
✅Well-managed complexensures long-term value appreciation.
✅High cash-on-cash return, making it a profitable investment.
📞Don't miss out on this exceptional opportunity!Contact us today to schedule a viewing and secure this high-yield property before it’s gone!
