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R 1 800 000

8 Bedroom Apartment / Flat for Sale in Molapo

Molapo, Soweto

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Ntate Tau

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A RESIDENTIAL 3 PROPERTY FOR SALE IN MOLAPO, SOWETO(8 units)

Prime Investment Opportunity in Molapo, Soweto!

Unit Features:

- Open-plan design for optimal space utilization

- Well-equipped kitchenette with built-in cupboards and dual stove (gas & electricity)

- Bedroom area with ample wardrobe space

- Sitting area

- Bathroom with toilet and shower

Building Highlights:

- 15,000-litre Jojo tank

- DSTV connection installed

- Secure yard

- Parking space for 4 cars

- Additional parking for 2 cars next door (neighbor’s yard)

Rental Income:

- Current Normal Rental:

- R2,800 per unit for 4 units

- R3,200 per unit for the remaining 4 units

- Plus R100 internet fee per unit per month

- Potential as Student Accommodation: R4,513 per unit

Annual Rental Income:

- Current Normal Rental: R297,600

- Potential as Student Accommodation (10 months): R369,040

Operating Expenses:

- Current Normal Rental (15%):...

Prime Investment Opportunity in Molapo, Soweto!

Unit Features:

- Open-plan design for optimal space utilization

- Well-equipped kitchenette with built-in cupboards and dual stove (gas & electricity)

- Bedroom area with ample wardrobe space

- Sitting area

- Bathroom with toilet and shower

Building Highlights:

- 15,000-litre Jojo tank

- DSTV connection installed

- Secure yard

- Parking space for 4 cars

- Additional parking for 2 cars next door (neighbor’s yard)

Rental Income:

- Current Normal Rental:

- R2,800 per unit for 4 units

- R3,200 per unit for the remaining 4 units

- Plus R100 internet fee per unit per month

- Potential as Student Accommodation: R4,513 per unit

Annual Rental Income:

- Current Normal Rental: R297,600

- Potential as Student Accommodation (10 months): R369,040

Operating Expenses:

- Current Normal Rental (15%): R44,640

- Potential as Student Accommodation (20%): R73,808

Net Annual Income:

- Current Normal Rental: R252,960

- Potential as Student Accommodation: R295,232

Annual Cash Flow:

- Current Normal Rental: R252,960

- Potential as Student Accommodation: R295,232

Annual Debt Service:

- None (100% Cash Purchase)

Property Value:

R2,000,000

Financial Metrics:

- Gross Yield:

- Current Normal Rental: 14.88%

- Potential as Student Accommodation: 18.45%

- ROI:

- Current Normal Rental: 12.65%

- Potential as Student Accommodation: 14.76%

Additional Financial Ratios:

1. Net Operating Income (NOI):

- Current Normal Rental: R252,960

- Potential as Student Accommodation: R295,232

2. Capitalization Rate (Cap Rate):

- Cap Rate = NOI / Property Value

- Current Normal Rental: 12.65%

- Potential as Student Accommodation: 14.76%

3. Cash-on-Cash Return:

- Cash-on-Cash Return = Annual Cash Flow / Total Cash Invested

- Current Normal Rental: R252,960 / R2,000,000 = 12.65%

- Potential as Student Accommodation: R295,232 / R2,000,000 = 14.76%

4. Loan-to-Value Ratio (LTV):

- LTV = Loan Amount / Property Value

- LTV: 0% (100% cash purchase)

5. Break-Even Ratio:

- Break-Even Ratio = (Operating Expenses + Debt Service) / Gross Rental Income

- Current Normal Rental: (R44,640 + 0) / R297,600 = 0.15

- Potential as Student Accommodation: (R73,808 + 0) / R369,040 = 0.20

6. Return on Equity (ROE):

- ROE = Net Annual Income / Equity

- Current Normal Rental: R252,960 / R2,000,000 = 12.65%

- Potential as Student Accommodation: R295,232 / R2,000,000 = 14.76%

7. Operating Expense Ratio:

- Operating Expense Ratio = Operating Expenses / Gross Rental Income

- Current Normal Rental: R44,640 / R297,600 = 15%

- Potential as Student Accommodation: R73,808 / R369,040 = 20%

Note: With the property purchased 100% in cash, there is no debt service, which significantly improves the financial metrics, especially the Cash-on-Cash Return and Break-Even Ratio. The higher potential rental income as student accommodation enhances profitability, although the increased operating expenses also impact the overall financial performance.

Bedrooms: 8

Bathrooms: 8

Parking: 20

Listing number: P24-115060618, Image number: 1

Listing number: P24-115060618, Image number: 2

Listing number: P24-115060618, Image number: 3

Listing number: P24-115060618, Image number: 4

Listing number: P24-115060618, Image number: 5

Listing number: P24-115060618, Image number: 6

Listing number: P24-115060618, Image number: 7

Listing number: P24-115060618, Image number: 8

Listing number: P24-115060618, Image number: 9

Property Overview

Listing Number

115060618

Type of Property

Apartment / Flat

Listing Date

11 October 2024

Rooms

Bedrooms

Bathrooms

External Features

Parking

20 Open Parking

Points of Interest

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