PROPERTY: Sound Rental Returns In CBD
Recent Western Cape Business News
Sound rental returns are being achieved in Cape Town’s City Bowl area, renowned for its central location and beautiful mountain and sea views. Pam Golding Properties reports that well-maintained buildings with good security continue to attract steady rental interest, both from long-term and short-term tenants.
One example is the sought-after “Fairview Executive Suites”, where PGP has recently sold two upmarket apartments. The sophisticated development with its landscaped gardens and communal pool is located in Ludlow Road, Vredehoek – a central yet quiet position in the City Bowl, offering spectacular mountain views. The first unit, a 74sqm two-bedroomed apartment with a balcony offering views of Lion’s Head and Signal Hill, sold for R1.545 million. The second, a 77sqm two-bedroomed unit with a small garden, sold for R1.55 million.
PGP’s area manager for the City Bowl and Atlantic Seaboard, Basil Moraitis, says the apartments presented not only an attractive lifestyle offering for permanent residents, but also an excellent investment opportunity for those seeking to realise returns via the building’s rental pool. “Over the past three financial years, the occupancy rate across all 20 units in this building has been over 65 percent – nearly 70 percent in the year ending May 2009. This past year, owners placing their apartments in the rental pool earned an average of R5724 per month in rental income (net income after deductions for management fees, cleaning, levies, etc). This consistent level of rental income makes Fairview, and other buildings like it, a very attractive option for investment buyers. Apartments in the City Bowl also offer an ideal option for those needing a part-time foothold in the city, for example, regular business visitors. They can have the best of both worlds – a secure, centrally-located pad offering easy access to the Central City and the Cape Town International Convention Centre, and potentially the opportunity to earn rental income from the property when it is not in personal use.”
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