11 Bedroom House for Sale in Potchefstroom Central

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R 3 450 000

Refer and Earn
  • 11 Bedroom House for Sale in Potchefstroom Central

Investment Property Overview: High-Yield Opportunity in Potchefstroom Central.

This well-located property in Potchefstroom Central offers investors a rare combination of strong rental yields, low risk, and scalable income potential. Below is a detailed analysis of its financial performance, layout, and locational advantages.

 

Financial Highlights

  • Gross Annual Rental Income: R379,200
    • Main House: R14,000/month (R6,000 + R8,000 per section)
    • Bachelor Units: R10,400/month (R3,000 + R3,600 + R3,800)
    • One-Bedroom Units: R7,200/month (R3,500 + R3,700)
  • Additional Income Potential:
    • Loft with separate entrance (unpriced, likely ~R2,000–R4,000/month).
  • Annual Expenses: R60,000
    • Includes armed response, Wi-Fi, garden/pool maintenance, rates, utilities, and contingencies.
  • Net Annual Profit: R319,200 (pre-tax, excluding property price).

 

Yield Estimate:

Assuming a purchase price of ~R4 million (typical cap rate of 8%), the property aligns with market standards.

 

Property Features & Income Streams

  1. Main House (444 sq.):
    • Section 1: 3 bedrooms, 2 bathrooms, workshop, garage, carport, loft (rentable separately).
    • Section 2: 3 bedrooms, 2 bathrooms, bank safe, dual garages.
    • Combined rent: R14,000/month.
  2. Additional Units:
    • 3x Bachelor Units: Kitchenette, bathroom, pre-paid meters.
    • 2x One-Bedroom Units: Living area, kitchenette, pre-paid meters.
    • Total rent: R17,600/month.
  3. Amenities:
    • Communal pool, automatic irrigation, secure parking, and alarm systems.

 

Locational Advantages

  • Proximity to Demand Drivers:
    • 1.5 km from North-West University (student rental demand).
    • Within 2 km of amenities (shops, healthcare, transport).
  • Cul-de-Sac Setting: Peaceful, low-traffic area ideal for long-term tenants.

 

Risk Mitigation & Upside

  • Tenant Stability: Leases secured for 2023 with month-to-month flexibility.
  • Cost Control: Pre-paid meters limit utility risks; expenses are fixed and transparent.
  • Scalability: Loft and potential rent increases (e.g., annual 5–7% adjustments) could boost income.

 

Conclusion

This property is a low-maintenance, high-cash-flow asset ideal for investors seeking predictable returns. Its prime location near a university and diversified rental units reduce vacancy risks, while the R319,200 annual net profit offers a compelling ROI. Further due diligence on property valuation and tenant retention rates is recommended to finalize the investment decision.

 

Key Metric:

Net Yield=R319,200 / Property Price×100% Net Yield = Property Price R319,200​×100%

With conservative management, this opportunity promises both stability and growth in Potchefstroom’s rental market.

RL1715