1 / 10

Pepper Club

Pepper Club. The Hottest Address in Cape Town. The Investment. Consists of: An apartment (Sectional Title Ownership) A furniture pack by a leading hotel designer, A rental pool operated by experienced hotel operators 1. Payment terms. Apartment & Parking Bay

kevin-long
Download Presentation

Pepper Club

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pepper Club The Hottest Address in Cape Town

  2. The Investment Consists of: An apartment (Sectional Title Ownership) A furniture pack by a leading hotel designer, A rental pool operated by experienced hotel operators 1

  3. Payment terms • Apartment & Parking Bay • 20% deposit : 7 days from signature • Balance of purchase price on Transfer • Note: Investors also purchase a standard furniture pack (not financed by the banks) priced from R180 000 3

  4. Projected Revenue • 8.5% for the first year of operation (Mar 2010 to Mar 2011) increasing by 10% pa Or • guaranteed 6% pa - for 2 years 4

  5. Taxation - Allowances • UDZ Allowance • 55% of unit cost • 11% in the first year – then 4.4% for 10 years • Depreciation Allowance • 20% pa on the cost of the Furniture pack • Tax Deductable Interest • Interest payable on all funds borrowed to finance the investment is tax deductable • Assessed Tax Losses • Tax Losses may be set off against any other taxable income or may be carried forward to following tax periods 5

  6. Taxation – Based on R1,4m Investment plus R180 000 Furniture Pack 80% Mortgage Projected Interest Total Tax Net Rental UDZ Dep. @ 9.5% Allowances • Year 1 132,600 (154,000) (36,000) (106,400) (296,400) • Year 2 145,860 ( 61,600) (36,000) (103,911) (201,511) • Year 3 160,446 (61,600) (36,000) (99,926) (197,526) • Year 4 176,491 (61,600) (36,000) (94,176) (191,776) • Year 5 194,140 (61,600) (36,000) (86,357) (183,957) • Total 809,537 (400,400) (180,000) (490,770) (1,071,170) 6

  7. Total Return – 80% Mortgage Net Capital Total Return on Income Appreciation Return Investment After Mortgage Interest R R R • Year 1 26,200 156,000 182,200 39,609% p.a. • Year 2 41,949 171,600 213,549 46,423% p.a. • Year 3 60,520 188,760 249,280 54,191% p.a. • Year 4 82,314 207,636 289,950 63,032% p.a. • Year 5 107,783 228,400 336,183 73,083% p.a. Average 54,480% p.a. Total 318,766 952,396 1,271,162 7

  8. INVESTOR – 80% LOAN • Projected Income, Tax Free to Year 8 • Projected period to repay loan only out of projected income In year 10 8

  9. 30 Days Free Usage • An Investor may occupy his apartment for 30days each year, free of rental. 9

  10. Pepper Club The Hottest Address in Cape Town Only the contents of Agreements signed by the parties may be relied upon. All other representations, written or verbal, are not warranted

More Related