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BRIEF: To find a 5 - 7 year Investment
offering double digit yearly capital growth and 100% occupancy
level (rental) for a buyer who had never visited Cape
Town before.
AREA: To be defined by Space - Ultimately
focusing on Sea Point and the City bowl.
BUDGET: Up to 1.7 million ZAR (£150k)
OPTIONS PROPOSED: Splitting his budget
over two areas, but after extensive consultations with
the client, it was agreed he would opt for one property
in one of two short-listed locations.
After many discussions, the search started four weeks
before the client visited to view the shortlist of 6 properties
from a selection of over 25 possibilities, which included
the best one and two bedroom apartments with sea views
in Sea Point, and with mountain or harbour views in the
city itself, as well as two town-house options. Rentals
for all of these were quoted so that the rental yield
could be determined.
The chosen property, we believe, was undoubtedly the best
choice, a stunning townhouse, which had been renovated
to such a high standard that our client was able to capitalize
on the quality of finish without the expense. The asking
price was 1,650,000 ZAR and we secured a final price of
1,485,000 despite the agent being adamant that the buyer
would not accept as low an offer as this. This gave our
client a saving of approximately 10% equating to 165,000
ZAR (approximately GBP £14,400; USD $28,500).
Our client left Cape Town the proud owner of a perfect
two double bedroom, two bathroom (plus guest toilet) townhouse
in a secure complex, in the popular area of Gardens, Cape
Town, with a double garage and on-site parking for visitors.
A fabulous corporate or executive rental property, which
we forecast would achieve a rental return of 5,500 ZAR
per month, and ultimately a superb holiday pad, should
it become vacant for a week!
Space subsequently organised for managing agents to view
the property, helped the client select the best agent,
co-ordinate access for both the agent and oversaw a thorough,
professional clean. The property was let within just one
week of transfer of ownership for a one-year lease, bringing
in the forecasted 5,500 ZAR per month. Even better, the
clients did not have to go to the expense of furnishing
the property with white goods as expected.
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