Weekend Argus (Saturday Edition)
Student accommodation brings in rental income
RAWSON Auctions Western Cape will soon auction a double-storey Observatory building currently used as student accommodation, giving bidders an opportunity to acquire an income-generating investment property.
The 235m² property is well-maintained, says Rawson Auctions Western Cape franchisee Tanya Jovanovski.
It presently generates a total rental income of R90 000 a month.
Situated at 104 Rochester Road, the building has 18 bedrooms, six bathrooms, two lounges and dining rooms (one for each floor).
There are also three kitchens and an outside braai and entertainment area.
Six of the bedrooms, three bathrooms and two kitchens are upstairs.
The remaining 12 bedrooms, three bathrooms and a kitchen are on the ground floor.
Security measures include CCTV cameras, burglar bars and a remote-controlled access gate.
“The property is currently tenanted, and the lease will end in December 2018,” Jovanovski says.
“We estimate the upstairs section alone could generate about R60000 per month in rental income, if used again for student accommodation, given the building’s location. Trendy Observatory is the residential area of choice for many students.”
Jovanovski believes that because of the property’s configuration and homely feel, it could also easily be converted into a thriving B&B.
The property will be auctioned at noon on September 26 at the Rawson Property Group head office at 222 Main Road, Rondebosch.
The reserve price is available on application, and all offers will be considered. The seller is registered for VAT, and no transfer duty will be payable.
No registration fee is required to bid with Rawson Auctions. However, the buyer will be expected to pay a deposit of 5% of the purchase price, as well as 10% commission plus VAT over and above the purchase price, to Rawson Auctions on the seller’s acceptance of the bid.
Bidders are required to be registered and must have with them certified copies of their identity documents and proof of residence.
All offers should be submitted on Rawson Auctions’ offer to purchase form, with its standard terms and conditions.
A copy can be obtained by contacting the Rawson Auctions Western Cape office on info@rawsonauctions.com or 021 837 1700. Bids can be delivered to the Rawson Property Group’s Rondebosch head office.
For more details or to book an appointment to view the property, call Henry Musoke on 083 474 5464 or Tanya Jovanovski on 021 837 1700.