Investment Opportunities

Gweru Student Housing Opportunity

Introduction

Burbill & Partners have come up with an opportunity for investment clubs, individuals looking at growing their real estate portfolio and any groups of individuals looking to make residual income through real estate. That opportunity lies within student accommodation.

Land Available & Cost

Burbill & Partners have identified and purchased fully serviced and titled land in the high-density suburb of Nehosho Park in Gweru located 13 kilometres from Gweru central business district and just 3 kilometres from the Midlands State University Campus. The cost of land per stand is approximately USD12,000 (they vary in size between 190 to 220 square metres).

Cost of Construction

The cost of constructing student accommodation to completion is based on a cost per square metre of approximately USD500. Thus, a standard completed to design low cost student house of 7 rooms at 110 square metres in size would cost the investor US$500 x 110sqm = US$55,000. Our slightly bigger model with 8 rooms at 150 square metre in size would cost the investor US$500 x 150sqm = US$ 75,000.

What will the accommodation feature:
- Kitchen (with standard BIC & double sink)
- Lounge
- Two Separate Bathrooms & Toilets
- 5 Bedrooms
- IBR Roof
- Ceilings
- Solar geyser
- Grano Floor
- Ceramic bathroom

Total Cost of Per Unit – Land & Construction

7 roomed unit
Land Cost US$ 12,000 + Construction Cost US$ 55,000 = US$ 67,000
8 roomed unit
Land Cost US$ 12,000 + Construction Cost US$ 75,000 = US$ 87,000

Income

A survey suggests that students pay between US$ 80.00 and US$ 100.00 in rentals per month per bed. Each bedroom will allow space for two beds meaning each room has the capacity to yield US$80.00 x 2 students = US$160 per month.

7 Roomed Income

Thus, if one has a full house for a 7 roomed unit total rental income per month is US$160 x 5 bedrooms = US$800 per month = US$ 9,600 per anum. Within 8 years invested capital would have returned (not including rental increments).

8 Roomed Income

Thus, if one has a full house for an 8 roomed unit total rental income per month is US$160 x 6 bedrooms = US$ 960 per month = US$ 11,520 per anum. Within 8 years invested once again capital would have returned (not included rental increments).

How do you get involved?

You and a group of your peers get together and create an Investment Vehicle that houses the money you set aside together per month. You approach Burbill with a 30% deposit of the entire cost of the project and continue putting money towards the project as Burbill builds you investment stage by stage.

Thus, if your investment group manages to raise 30% of US$ 67,000 ie US$20,100 you can approach us at Burbill and we can get started in your first 7 roomed real estate investment project.

For more information, contact us.