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
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      If you are looking to sell your home this year, Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, says that there are five crucial things to do before the ‘for sale’ sign goes up.
    • 01 Feb 2018
      February is the month of love and to celebrate we will be posting about all the things we love this month. Follow the #MyPropertyLoves hashtag to keep up with our favourite things.
    • 01 Feb 2018
      After saving up and months of searching for the right home, applying for a bond and patiently waiting for the keys to the front door, it is finally time to cross the threshold and move into your new home. Now what?
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us