Investor-Friendly Property Description – 5 Lawrence Street, Fort England, Makhanda

Prime Buy-to-Let Investment with 10.5% ROI & Sectional Title Potential

📍 Address: 5 Lawrence Street, Fort England, Makhanda
💰 Asking Price: R2.095 million
📈 Net Rental Income: R220 064 per year
🏡 Property Type: Low-maintenance residential complex (6 flats + 1 cottage)

Investment Summary

This fully tenanted buy-to-let property offers a high rental yield of 10.5%, making it an attractive opportunity for investors seeking stable, long-term rental income. Unlike student accommodation, which typically generates income for only 10 months per year, this property is targeted at working professionals, ensuring a 12-month rental cycle with consistent cash flow.
The complex consists of six low-maintenance one-bedroom flats and a modernized one-bedroom cottage, all designed for single occupants. The property features off-street parking for each unit and two emergency water tanks, adding further convenience for tenants.

Financial Breakdown

🔹 Annual Rental Income: R383 720
🔹 Total Expenses: R163 656
🔹 Net Rental Income: R220 064
🔹 Average Rental Rate per sqm:
• Flats: R113.53/sqm (R4 768/month per unit)
• Cottage: R89.30/sqm (R5 000/month)

Key Features & Tenant Appeal

✅ 6 x One-Bedroom Flats – Each unit includes a small living room, kitchenette, built-in cupboards, and a bathroom with a shower, basin, and toilet.
✅ 1 x Modernized Cottage – A spacious 56 sqm unit with a cathedral ceiling, modern finishes, a separate living area, and a kitchenette.
✅ Off-Street Parking – Secure parking for one vehicle per unit.
✅ Low Maintenance – Built with face brick construction, reducing ongoing upkeep costs.
✅ Emergency Water Supply – Two water tanks for backup water storage (not plumbed into the building).
✅ 12-Month Rental Income Stability – Targeting working professionals instead of students means year-round income with fewer vacancies.

Potential for Capital Growth

💡 Sectional Title Conversion Opportunity

• Investors can convert the complex into sectional title units and sell them individually at a premium.
• Estimated resale price per flat: R500,000+ (potential uplift in total property value).
• High demand for affordable one-bedroom units in Makhanda makes this a profitable resale opportunity.

Market Positioning & Risk Mitigation

🔹 Location Consideration – While Fort England may not be the most sought-after suburb, the rental income is competitive with student accommodation near the university, proving strong demand for affordable housing.
🔹 Tenant Risk Management – The perception of unreliable tenants can be mitigated through rigorous tenant screening, deposits, and lease management.
🔹 Higher ROI vs. Student Rentals – Students typically pay rent for only 10 months per year, whereas these units provide 12 months of income, making it a stronger investment proposition.
Next Steps for Investors
📊 Request a Full Financial Analysis – Detailed breakdown of rental income, expenses, and projected returns available upon request.

🏡 Book a Private Viewing – View the property and discuss the investment opportunity in detail.

📩 Contact Us Today – Don’t miss this high-yield buy-to-let investment with future resale potential!