This gorgeous block of flats in the heart of Boksburg central is a must buy!
Offering prime corner space on Commissioner Street, advertising opportunities, and a potential for rental increases with slight adjustments to the building.
The building has 6 rentable units with 4 garages for parking. There is access control via security gate and electric fencing around the block. There is a meter room for readings, NO PRE-PAID.
The building is in WONDERFUL condition and, also features stunning tiles, up-to-date piping, and a gorgeous exterior.
Please note that the garages are NOT owned by the block of flats but by the neighbour and an agreement is in place for the use of the garage by the tenants. Garages are accessed from the main street for the convenience of the tenant.
Unit 1 – R4000
Unit 2 – R3500
Unit 3 – R4200
Unit 4 – R3000
Unit 5 – R4000
Unit 6 – R3200
Building insured replacement value – R6 000 000.00
GROSS yearly income @ full occupancy - R262 800.00
Yealy expenses EXCL. rates - R29 880.00
Yearly municipal expenses - R58 012.56
NET Yearly return @ full occupancy - R174 908.00
ROI’s on full occupancy @ R2 470 000.00:
Gross @ 10.6%
Net @ 7.08%
POTENTIAL INCOME INCREASES & ROI’s
• With an addition of biometric controlled access and some face-lifting to the interior of the flats, rent can be increased by a minimum of +-R450 / unit. This has the potential to bring an additional +-R30 000.00 income yearly.
• Due to the buildings presence and main road facing façade, there is an opportunity to install wall or roof advertising. Depending on the size of the advert, this could bring in a minimum of R10 000.00 / month. This has the potential to generate over R100 000.00 yearly.
• Pre-paid meters can be installed into each unit, giving greater tenant confidence and satisfaction. This may allow a rental increase of up-to R550 / unit, taking the above in consideration.
Figures with the above potentials in mind:
GROSS yearly income @ full occupancy - R302 400.00 (R262 800.00 + R39 600.00)
Income from wall / roof advertising - R100 000.00
Yearly expenses EXCL. rate - R35 000.00 (Increase in costs for biometric, advertising electricity and general increases)
Yearly municipal expenses - R60 000.00
NET yearly return - R307 400.00
ROI’s on the above @ R2 470 000.00:
Gross @ 16.29%
NET @ 12.44%
The numbers above are very accurate estimates, but are estimates