PROPERTY ON AUCTION PORTFOLIO DISPOSAL! - Multi-tenanted Investment 18 Rooms
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PROPERTY ON AUCTION
PORTFOLIO DISPOSAL!
Multi-tenanted Investment
18 Rooms
71 OAK AVENUE
PRIMROSE, GERMISTON
Auction Date: Thursday 2nd March 2021 @ 12:00pm
Viewing : From 11:00am
Venue : On- Site, Online & Telephone bidding
Contact for further info:
Ross Diamond
Cell: 071 617 3686
Email: ross@soaauctioneers.co.za
GUIDELINES FOR THE AUCTION
Auction Date: THURSDAY 2nd March 2021 @ 12:00 pm
Auction Venue: On-Site, 71 Oak Avenue, Primrose
Auction: On site, Online & Telephone Bidding Available if Required
Registration: Bidders can register any time prior to the auction. Identity document as well as FICA documents
are required as well as the refundable registration fee of R15 000.00 to be paid into the trust account. Proof of
this payment will be required prior to bidders’ card can be issued.
If you intend bidding on behalf of an entity, please make sure you also supply us with the requisite documents
PRIOR to bidding at the auction as without the resolution you WILL be deemed to be transacting in your
personal capacity.
Upon signature of the registration documents and payment of the registration fee all buyers will have
acknowledged and accepted the Terms and Conditions set out in the Rules of Auction.
Deposit: 21.5% of the bid price.
Confirmation period: 7 working days, excluding the date of auction, Saturdays, Sundays and public
holidays.
Guarantees: Guarantees for the balance of the purchase price to be issued to the conveyancer
within 21 working days after confirmation of sale.
The bid price excludes the auctioneers fee of 10% plus vat which is payable over and above the bidding
price.
Example:
Bid Price: R 1 000 000.00
Auctioneers fee: R 100 000.00 (10% on bid price)
VAT on Buyer’s Premium: R 15,000.00
Total Purchase Price R 1 115 000.00
The auctioneer has the right to regulate the bidding and to bid on behalf of the seller at the auction up to the
reserve price as mandated by the seller.
A deposit of 21.5% is payable on fall of the hammer.
ADDRESS’ OF PROPERTY
Property Address: 71 Oak Avenue, Primrose,
Erf & Suburb & City: Erf 1891, Primrose, Ekurhuleni, Gauteng
ERF Size: 1377 m²
Zoning: Res 3
PROPERTY DESCRIPTION
The subject property is a multi-tenanted investment opportunity. There are 18 sections on this property each
of which bring in a separate income. The main house has been sub-divided into 6 rooms. These rooms share
a common bathroom and kitchenette within the main structure.
The second dwelling on the property consists of 4 rooms with a communal bathroom.
The third dwelling consist of 5 rooms. Further to that there are 3 separate dwellings that are single rooms only.
There 5 rooms as well as the 3 separate sections share 1 communal bathroom.
The current owner has evicted all the tenants. There are only 2 people living on the property just for security of
the premises.
Potential rental Income
18 Single Room rentals @ R1350.00/month R24 300.00
Approx. Expenses R 7 000.00
Potential Net Monthly Income R17 300.00
Potential Annual Income R207 600.00
Potential return on investment
Based on a Net income of R207 600.00 the returns on investment will be such
18% R207 600.00 ÷18% = R1 153 000.00
19% R207 600.00 ÷19% = R1 092 000.00
20% R207 600.00 ÷20% = R1 038 000.00
Due to the fact that the rentals are very low in this type of establishment it is not difficult at all to find new
tenants and vacancies are very low.
Please take note there are no plans available for the improvements.
LOCATION INFORMATION
Primrose is a suburb of Germiston in Ekurhuleni, Gauteng, South Africa. Germiston is an industrial city with
resdential suburbs.
The area is well connected to five major freeways or motorways that service Greater Johannesburg. The M2
motorway connects to the southern Johannesburg CBD, the N3 Eastern Bypass, the N12 South. On the
southern side, the N17 and N3 and in the north, the N12 East and the R24 service the city.
Being a mining and industrial city, Germiston is serviced by passenger rail and the industrial areas are
serviced by rail spurs and stations and the Transnet has a large depot north of the CBD.
Rand Airport is located in the city, Today it caters largely for light aircraft and flying schools, but is also home
to the South African Airways Museum.
Hospitals located in the area Bertha Gxowa Hospital and Life Roseacres Hospital in Primrose.
AERIAL PHOTOGRAPHY
SITE PHOTOGRAPHS
PROPERTY LAYOUT
PROCESS ON THE AUCTION DAY
Registration is open 5 DAYS prior to the auction
In order to bid on a property, you need to complete and sign the registration form and pay the
registration fee of R15 000. Please ensure this is done timeously in order to complete the
registration process. Fica documents (proof of address and copy identity documents), will be
required in order to register
After registration one is issued with a bidders’ number which is required for the auctioneer to
recognise your bid.
The auctioneer will read out the rules and begin the auction. He will open the bidding to the
floor and take the first bid received.
There is no minimum or standing bid amount
Bid by raising your hand, nodding your head or making and indication to the auctioneer that
he can recognise as your bid.
SOA Auctioneers’ staff are available to assist you with bidding should you feel the need.
The bid price excludes the bidders’ premium and vat on such bidder premium.
Once the auction is complete the highest bidder will need to complete the sales agreement and
pay the 21.5% deposit immediately.
The sales agreement may not be altered in any way nor under any circumstances
The sales agreement must be completed and signed by the purchaser in his/her personal
capacity or as a representative for the legal entity you represent.
PROCESS POST AUCTION
The highest bid will be submitted to the seller for consideration
All offers are subject to a 7 day confirmation period.
On confirmation all sales are final
The balance of the purchase price, excluding vat, shall be paid to the conveyanser and SOA
Auctioneers by the purchaser by the way of electronic funds transfer (EFT) or secured by a
written guarantee from a registered bank or financial institution
Payment must be provided to the conveyanser within 21 business days of the signature date,
free of exchange.
Should you require any further information or clarity of the above please contact the M.D. of
the auction division.
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