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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. Payment terms. Apartment & Parking Bay

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Pepper Club

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  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

  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

  4. Projected Revenue • 8.5% for the first year of operation (Mar 2010 to Mar 2011) increasing by 10% pa Or • guaranteed 7% pa - for 2 years

  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

  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 1 134,300 (154,000) (36,000) (106,400) (296,400) • Year 2 147,730 ( 61,600) (36,000) (103,750) (201,350) • Year 3 162,503 (61,600) (36,000) (99,571) (197,171) • Year 4 178,753 (61,600) (36,000) (93,593) (191,193) • Year 5 196,628 (61,600) (36,000) (85,503) (183,103) • Total 819,914 (400,400) (180,000) (488,816) (1,069,217)

  7. Total Return – 80% Mortgage Net Capital Total Return on Income Appreciation Return Investment After Mortgage Interest R R R • Year 1 27,900 158,000 185,900 40.413% p.a. • Year 2 43,980 173,800 217,780 47.343% p.a. • Year 3 62,932 191,180 254,112 55.242% p.a. • Year 4 85,160 210,298 295,458 64.230% p.a. • Year 5 111,125 231,328 342,453 74.446% p.a. Average 56.335% p.a. Total 331,097 964,606 1,295,703

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

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

  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

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