This property is ideal for an investor who is very interested in making investment income while enjoying the stay in the house or an investor who would like to make an investment income from the entire property. The property has a flatlet which can be rented out for R4000p/m. The property also has a Billboard Corner which is currently producing R2000p/m for the current owner. So in total the income is R6000p/m. So if you buy the property at the current listing price you will only have to pay about R5000p/m into your bond if you will be using the extra income to balance the monthly bond repayment. The Billboard Corner has a potential of producing up to R4000p/m.
If you decide to rent out the whole property you will pay the bond and make substantial profit every month. This property is highly suitable as a long term investment for rental income. Kempton Park is a suburb that is dominated by working class young adults between the age of 20 and 30. Rental income is guaranteed. If you want to start-up in property investment this is where you should start. If you are already in the game you know that this is one of the best investments you can make in Kempton Park. Rent always increases on about 10% on a yearly basis. Now think about how much will be the rent 5 years from now. Whatever it will be, all of it will be an extra income going into your pocket every month. Plus the value of the property would have increased from what it is worth now to a higher value so if you decide to sell 5 years from now you will make huge capital gains/profit. If you are still in the 20’s, 30’s or 40’s and the bank can grant you a loan, there is no reason why you should not take this investment opportunity.
Gross Salary to qualify for a bond for this property is approximately R40 000.00 and the monthly installment is approximately R11 603.47. The transfer and bond registration cost that must be paid to Attorneys to transfer and register the property is approximately R52 008.00.