Recently renovated student accommodation offers excellent returns

In property circles, says Tanya Jovanovski, Rawson Auctions co-franchisee for the Western Cape, it is now widely accepted that very few investments give a better return than those which are tenanted by students – and, she says, it is for this reason that her latest offering, scheduled to be auctioned on Wednesday 24th July at 12 noon at the Rawson Property Group’s head office (222 Main Road, Rondebosch), is already attracting considerable attention.

Sited at 5A Junction Road, Salt River, the three storey building is only 3,5 km from UCT. It is divided into 21 one bedroom student apartments (some of which however have double beds) and all of which are let fully furnished. Occupants share seven shower areas and a fully equipped central kitchen with gas hobs. They also have the full use of a computer room equipped with PCs and all the rooms throughout the complex are linked to a broadband hotspot system. In addition, all residents have the use of a laundry which has a coin operated Speed Queen washing machine and a comfortable lounge and TV viewing area with DSTV.

All except for one of the 21 rooms are tenanted, the 21st room being kept for day lets and as a show room.

The building, says Jovanovski, can produce a rental of R835,000 per annum and a net income, after deductions for all expenses of R405,000. In view of these figures, bidding, she says, is likely to begin at around R4 million.

“Both the residential sales and the developments of the Rawson Property Group,” says Jovanovski, “have already shown that student accommodation can be highly profitable to investors. I firmly believe that this latest offering will be as good a buy in the student accommodation field as has ever yet been made available to the general public.”

Rawson Auctions do not charge a bidder’s registration fee, but they expect a 10% auctioneer’s commission and 5% of the sales price to be paid on the fall of the hammer.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us