BRIEF: Sea view, double digit yearly capital growth and 100% rental occupancy.
AREA: Upper Sea Point
BUDGET: From 1.4 million to 3.2 million (6 clients)
OPTIONS PROPOSED: We were approached from 2005 onwards by six different clients from all over the world, to source a modern, well built apartment with sea views, good rental potential and good steady investment growth. We recommended the Bay Views development as we believed that these units where very well priced for the size, position and of course the rentability. As it was an off plan property, purchasers did not have to pay the 8% transfer duty tax and only had to pay 20% deposit to secure the unit. Space also arranged the financing through a mortgage broker at good discounted rates as well as introducing an excellent currency broker to get the best exchange rate for the purchase.
Apartments were purchased on different floors at different price points, all having sea views, two bedrooms, two bathrooms, undercover, secure parking, a balcony and access to the communal pool. The investors had the choice of finish on which Space advised them, depending on their budget. This included everything from flooring and bathroom tiles through to air conditioning and choice of kitchen tops. Space checked all snagging over several weeks during the completion phase, and gave constant progress reports during the build period to all of our clients.
The apartments were completed in Q4 2007 and within one week Space had facilitated valuations with rental agents and subsequent lease agreements on all apartments at or within a couple of percent of the required monthly rental figure for lease periods of between one and two years. One of the agents told us that it was disappointing that there were not more available, as she had many excellent calibre tenants still looking for exactly this type of property. Having approached the rental agents with a number of apartments at the same time, we also negotiated a discounted rate for our clients finding a tenant and having the property fully managed. Our project manager accessed the properties to measure up for any necessary fittings as per each owners requirements, and these were all actioned prior to the 'move-in' date of the new tenants (which was within two weeks of completion.)
| Floor |
Size |
Purchase price |
Q4 ‘07 *
|
| Sixth |
88m2 + 100m2 private roof terrace |
3,200,000 (‘07) |
Purchased Q3 ‘07 ** |
| Fifth |
88m2 |
1,935,000 (‘06) |
2,400,000 |
| Fourth |
88m2 |
1,895,000 (‘06) |
2,300,000 |
| Fourth |
69m2 |
1,510,000 (‘06) |
1,950,000 |
| Third |
69m2 |
1,440,000 (‘06) |
1,850,000 |
| Second |
69m2 |
1,370,000 (‘06) |
Resold July ‘07 1,650,000 (20.5% growth rate) |
*Market Value based on other unit sales in the same building.
**This apartment was held back by the developer until 2007. |
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