Shrewd property investors, says Tanya Jovanovski, CEO of Rawson Auctions, have long recognised that it is not the top of the range properties that give the best rental returns in relation to the capital outlay. Rather, it is the smaller and middle lower category units that do this.
'We have sold apartments in Rondebosch and Rosebank for under R600 000 which have delivered R8 000 nett rentals (i.e. 6% plus nett return from the outset),' says Jovanovski. 'By contrast, the R2 million to R5 million properties usually can give only 4% to 5% returns initially'
For this reason, says Jovanovski, the forthcoming sale of five units in the Gordons Bay Security Estate on 28th June should interest investors. These are mostly 63m2 and 59m2 in size, but they both already command rentals of R2 400 per month. In many instances the tenants are already secured.
Each unit has two bedrooms, an open plan kitchen with built-in cupboards and a balcony, as well as a small garden. Each has also a parking bay.
'Extras' offered by this scheme, said Jovanovski, are that the development has excellent gate and perimeter security and patrolling guards. The communal facilities include a laundry for the use of all residents.
The rates charged on the properties is a mere R120 per month. The levy is currently at just over R600.
Jovanovski expects bidding to start at around R250 000 '“ 'This could be a very good buy,' she said.
On all Rawson Auction sales, no registration/bidding fee is asked. On the fall of the hammer, the buyer is required to pay a 5% deposit and 10% commission (plus VAT).
For further information contact Tanya Jovanovski on 082 411 9599 or Jason Lee on 082 940 6605.
