Web Ref RL416
R45,000,000
191, 192 Chrisville Apartments and Studios, 4 Colleen Street, Chrisville, Johannesburg
Monthly Bond Repayment R449,270.94
Calculated over 20 years at 10.5% with no deposit.
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Investment Opportunity: 66 Brand New Developed Units for Sale
This investment offers a strong long-term rental opportunity, with immediate income, room for rental escalation, and potential capital growth over the full bond period.
Investment Summary
Total sale price: R45 000 000
The property consists of 66 rental units, with each unit currently projected at a rental income of R6 750 per month.
Rental Income
Monthly rental income:
66 units x R6 750 = R445 500 per month
Annual rental income:
R445 500 x 12 = R5 346 000 per year
Financing Assumption
Bond term: 20 years
Interest rate: 10% per annum
Based on these assumptions, the estimated monthly bond repayment is approximately R434 259.
Projected Monthly Position
Gross monthly rental income: R445 500
Estimated monthly bond repayment: R434 259
Estimated net monthly surplus before operating costs:
R11 241 per month
Estimated annual surplus:
R134 892 per year
The rental income is already projected to cover the bond repayment from the start, with a positive monthly surplus. If rental income increases by approximately 5% to 8% per annum, the annual surplus could grow to approximately R145 680 in the following year, based on an 8% increase.
Tax Considerations
The following costs may be tax-deductible, subject to confirmation by the purchaser’s accountant or tax practitioner:
• Ryx management fees
• Bond interest
• Maintenance costs
• Other qualifying property-related expenses
These deductions may improve the overall after-tax position of the investment.
Key Selling Points
• Strong rental demand
The units are competitively priced and positioned to attract consistent tenant interest.
• Positive rental position from the start
Based on the current rental and bond assumptions, the property produces a monthly surplus before operating costs.
• Rental growth potential
Rental income is expected to grow over time, supported by demand for residential units in the area.
• Long-term capital appreciation
Over a 20-year period, the property has strong potential for capital growth, especially if demand in the area remains high.
• Inflation hedge
Property remains a practical long-term investment option, as rental income and property values often move with inflation over time.
• Tax efficiency
Bond interest, maintenance, and management fees may be deductible, which can assist with improving the overall return.
Investment Summary
Total sale price: R45 000 000
The property consists of 66 rental units, with each unit currently projected at a rental income of R6 750 per month.
Rental Income
Monthly rental income:
66 units x R6 750 = R445 500 per month
Annual rental income:
R445 500 x 12 = R5 346 000 per year
Financing Assumption
Bond term: 20 years
Interest rate: 10% per annum
Based on these assumptions, the estimated monthly bond repayment is approximately R434 259.
Projected Monthly Position
Gross monthly rental income: R445 500
Estimated monthly bond repayment: R434 259
Estimated net monthly surplus before operating costs:
R11 241 per month
Estimated annual surplus:
R134 892 per year
The rental income is already projected to cover the bond repayment from the start, with a positive monthly surplus. If rental income increases by approximately 5% to 8% per annum, the annual surplus could grow to approximately R145 680 in the following year, based on an 8% increase.
Tax Considerations
The following costs may be tax-deductible, subject to confirmation by the purchaser’s accountant or tax practitioner:
• Ryx management fees
• Bond interest
• Maintenance costs
• Other qualifying property-related expenses
These deductions may improve the overall after-tax position of the investment.
Key Selling Points
• Strong rental demand
The units are competitively priced and positioned to attract consistent tenant interest.
• Positive rental position from the start
Based on the current rental and bond assumptions, the property produces a monthly surplus before operating costs.
• Rental growth potential
Rental income is expected to grow over time, supported by demand for residential units in the area.
• Long-term capital appreciation
Over a 20-year period, the property has strong potential for capital growth, especially if demand in the area remains high.
• Inflation hedge
Property remains a practical long-term investment option, as rental income and property values often move with inflation over time.
• Tax efficiency
Bond interest, maintenance, and management fees may be deductible, which can assist with improving the overall return.
Features
Pets Allowed
No
Interior
Bedrooms
2
Bathrooms
2
Kitchen
1
Reception Rooms
1
Furnished
No
Exterior
Security
Yes
Parkings
1
Pool
No