units. The property did not require major refurbishing, but rather minor renovation and maintenance work.
The key attractor to the purchase was the building’ s location. Situated close to a main road, Gardenia offers residents easy access to transportation.“ There are a lot of people who stay in town who cannot afford to rent in the suburbs, which command higher prices. Because of its location, however, they can rent in town and still more easily travel to the suburbs and back,” he explains.
Gardenia is also near by a railway station and university. This makes it ideal for the property’ s target market – students, young professionals and those starting out in their adult lives. It also caters to young families. As Thomas notes, those who are already well established do not normally prefer to stay in town.
The property offers two essential amenities – Wi-Fi and a shared laundry. Internet connectivity is either provided as part of the rental agreement or on an adhoc basis through the use of tokens. While younger tenants have been interested in sharing the two-bedroom units, the pandemic has driven up interest in the one-bedroom units, as people prefer to have their privacy.
Other than that, the COVID-19 pandemic has not had much of an impact on the student accommodation business, with
Chauke still expecting a 12 % return on his overall investment.
One learning from his experience that he shares is the value of having a satellite office and several properties close to one another. This makes property management considerably easier, enabling one caretaker to manage several properties.
Thomas Chauke does not intend to stop investing in properties, but plans to keep moving forward, taking one step after the next as he did to obtain his education, purchasing further properties and growing his business, with a trusted partner in TUHF.
“ Whereas other banks require you to present the details of your project to try secure funding they do not give you support if you are successful. In TUHF I have found ongoing assistance and guidance all the way,” he concludes.
PROJECT PROFILE Project Name: Gardenia Location: 149 Johnston Sreet, Sunnyside, Pretoria TUHF Product: Funding to purchase the building at purchase price of R7,500,000 Original Configuration: 10 1-bedrooms & 10 2-bedrooms, for a total of 20 units Configuration Upon Completion: 10 1-bedrooms & 10 2-bedrooms, for a total of 20 units
SOURCES TUHF
SA Real Estate Investor Magazine DEC / JAN 2022 23