Size: ~68 m2
Type: Modern student apartment, 2 beds, open-plan layout, balcony
Location: Hatfield – walking distance to University of Pretoria, shopping, amenities, transit
Rental & Market Comparisons
Similar 2-bedroom apartments in Hatfield (~67-70 m2) rent for around R9 900/month.
1-bedroom units go for R5 000-R8 000 depending on finishes and furnishings.
Financial Analysis (Assuming Full Financing / Bond)
Assumptions:
100% bond for R950 000
Interest rate approx. 11.5% per annum
20-year repayment term
Component Amount (approx)
Gross Rental Income (Monthly) R9 900
Levies & Rates & Taxes (assume similar cost, e.g. R2 500 levy + R400 rates & taxes) R2 900
Monthly Bond Repayment (for R950,000 at 11.5% over 20 yrs) ~R10,155*
Total Monthly Expenses (Levies, Rates & Bond) ~R13,055
Net Monthly Income (after all expenses) -R3,155 (negative cash flow initially)
*Calculation: Standard amortization estimate.
Because monthly bond repayments are higher than rental income plus levies in this scenario, it results in negative cashflow in the early period if bought fully financed.
Cash-on-Cash Return & ROI
Cash Investment Upfront: Legal costs, transfer fees etc. (let’s assume ~R50,000 as once-off)
Annual Net (after all expenses): Negative, in early years, due to bond repayments exceeding income.
Thus, cash-on-cash return would be negative initially under full financing. Long term, as bond principal reduces, rental increases, and property value appreciates, ROI improves.
Capital Appreciation & Area Growth
Hatfield is one of the strongest student accommodation / rental demand suburbs in Pretoria.
Market analysts expect steady capital growth in Pretoria suburbs like Hatfield, typically 2-4% per annum in recent periods.
High occupancy rates due to proximity to university and amenities increase investment stability.
Insights
Live the best of student/the young professional lifestyle in this modern, beautifully finished 68 m2, 2-bed apartment in Hatfield—just steps from the University, transit, and shopping.
Highlights:
Spacious two-bed layout, balcony with views
Fully finished kitchen, quality bathroom
Excellent rental comparables at ~R9,900/month
Prime location in Hatfield—strong demand + strong capital growth (~2-4% p.a.)
Investment Reality: If you finance this 100% with a bank loan, expect a negative cashflow in early years as bond repayment exceeds rental income + levies. Long term gains come from rental escalations and property appreciation. If you can negotiate down or place a deposit, your ROI improves significantly.
