Renovation of a Partially Built House in a High Capital Growth Area

Fourways, Johannesburg

YDL bought this 391 sq.m property in Fourways at an auction for R1m. It was only partially built, and required over R1m in renovations. We engaged the services of an architect to manage the building plan approval process, and to specify the top-of the-range finishes. This intensive project took just over a year to complete and for the buyer to take transfer. The return on Investment was 27%. YDL’s investor obtained bank finance to fund most of the transaction, resulting in him only injecting R207,872 of his own capital. The net profit on the project was R708,680, for a return on equity of 341%.

391 Sq.m.

4 Beds 

4 Baths

3 Lounges 

2 Garages

Garden

This net profit on this YDL project was R708,680 in just over a year.
That means a return on equity of 341%

Use the map to get an idea of the area. For security purposes we have not identified the actual property on the map.

The Numbers

Total capital investment    R2 652 864
Net income    R3 361 544
Net profit    R708 680
Project duration (Months)  14.00
Project ROI     27%
Investor equity    R207 872
Project ROE    341%

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