Make More Money with Less Hassle
The Rose on 117 is unique. Firstly, because of the symbiotic relationship the development enjoys with the adjoining 117 on Strand building, with which it will share a secure entrance, concierge desk, gym and other amenities.
But more than this, The Rose on 117 is unique in the value it offers investors looking for dramatically higher short-term letting returns.
To understand this value, you need to look at the trends in Cape Town tourism. The post-pandemic surge in bookings is only the beginning. Cape Town’s popularity as an international holiday destination gets stronger year by year. In fact, we’ve just been rated the third best city in the world by the UK’s Telegraph!
In addition, the ‘staycation’ trend – an extended working holiday in an overseas destination – has been hugely accelerated by the remote working model. Already we are seeing a huge influx of digital nomads who are typically looking for more affordable and more authentic accommodation than is offered by the big hotel chains.
Until now, the barrier to entry to this market has been that servicing an Airbnb apartment is hugely time-consuming if you do it yourself, and very expensive if you use one of the existing management companies. This is why we have launched Perch, a company that will offer a turnkey service at very affordable rates.
And given the incredible value we are offering at unheard-of prices, you can be assured that long-term capital growth will also be a major driver of total ROI.
PROJECTED RETURNS: 9% IN YEAR ONE
Our conservative projection, taking into account seasonal occupancy and estimated day rates for the first year of ownership (April 2024 to March 2025), is an average gross monthly rental income of R23 388 per month, or R280 658 for the year.
Taking into account all the associated running costs, this equates to a return on an investment of R1,549 million (the average selling price) of 9%. This figure excludes bond costs, and the additional investment benefits of capital appreciation and the UDZ tax incentive.