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