THREE ADJACENT INCOME GENERATING PROPERTIES AS RUNNING CONCERN OR FOR DEVELOPMENT - RESIDENTIAL

INCOME GENERATING PROPERTIES AS RUNNING CONCERN OR FOR DEVELOPMENT ...

SUMMARY

- 3 Adjacent stands, of which one is a corner stand.

- 3 Separate buildings, one per stand.

- 18 Bedrooms in total.

- 16 Bathrooms in total.

- Properties are Income generating with room to improve.

- Partly owner-occupied.

- Pool & Jacuzzi on middle property.

- Guest House approval for 12 double units over two of the properties. This was the start of turning the properties into a business.

- 6 Street accesses, of which 4 are motorised.

- Two single carports on one property and a 3-car carport on the other one.

- Buildings and gardens need different levels of attention to bring back to a state of beauty. Some neglect occurred pending execution of future plans, and later due to future reconsideration.

EXISTING ACCOMMODATION CONFIGURATION

- 7 Bedrooms, 7 Bathrooms (6 x separate self-catering units). This property generates most of the income.

- 6 Bedrooms, 6 Bathrooms (5 x separate self-catering units, plus remainder of house; plans to add one to two more. This property has moderate income generation.

- 5 bedrooms, 3 Bathrooms (1 garden cottage, plus house set for division); plans to split up and build addition for a total of 5 to 6 self contained units. This property has only one income generating unit.

- Each unit has private kitchen and bathroom facilities.

BACKGROUND

- Started activities to rezone for high density accommodation development, with Residential 4 and Special Use under consideration.

- Discussed with City Planner a while before covid lockdown, who indicated the initiative would be supported by the planning department provided all regulations and approval requirements are met.

- Had drilling done and resulting geo reports support such development.

- First draft of SDPs compiled.

- The plan entails 34 to 38 self contained units with 2 refreshment outlets. We are of the understanding that the size of the grounds can accommodate 40 units, but we opted to reduce the number to make way for the refreshment outlets.

- Existing buildings would be retained and repurposed, building over them on pillars and on vacant land space.

FUTURE POSSIBILITIES

- Continue rezone activities and high density accommodation development.

- Use properties as an investment for passive income. Current income: R65,000+ per month. (30% Increase possible by completeing planned renovation and depending on own use requirement.)

- Fully establish and expand guest house operations for income generation.

- Subdivide the two larger stands, build vacant land and sell all off for profit.