The Soul offers investment opportunities for everyone. You can buy a unit for yourself and your family to come and stay or rent it out to friends and guests. Invest into a couple of apartments to support your tourism business in Zanzibar guaranteeing accommodation availability for the growing number of guests wishing to visit Zanzibar.
Another option is to purchase entire Apartment Buildings at The Soul annexing them to your business, start your own Hotel Room Business or add them to the Rental Pool of The Soul generating solid returns without any hassle. Whatever it is, The Soul has it ready for you.
The Tourism Sector has lately been growing by 15% per annum creating an enormous demand for additional rooms every year. This robust growth together with the annual GDP growth of above 7% will drive the market for the beautifully designed apartments and the entire resort and will generate handsome returns on investment and appreciation of capital invested. The management of The Soul will support you with long term rentals and of course, assist you and your family & friends during your stay at your apartment making it an unforgettable time on this beautiful Island. The management will also offer the option to add your residence to the rental pool of The Soul which will be professionally managed on a short term rental - Hotel or AirBnB like manner.
The expected Net Return for a long term rental is at around 6% and for the rental pool it is estimated at above 18% based on modest assumptions of today’s market rates.
|Estimated ROI based on a 1 Bedroom Apartment at 47,900 USD Purchase Price +5% Facilitation Fee (if added to the rental pool the owner needs to add the standard furniture package of approx. 8,000 USD for a 1B Unit)||Long Term||Short Term|
|Expected Rental Rate (per month on Long Term, per day on Short Term = net after deduction of Hotel Levy 18%)||450$||76$|
|Occupancy (average occupancy on the East Coast of Zanzibar is at 65%)||95%||65%|
|Gross Rental Income||5,130$||17,946$|
|Service Fee (2$ per sqm living space per month - 1 Bedroom 32 sqm)||768$||768$|
|Rental Pool Management and Marketing Fee (35% of Gross Rental Income)||NA||6,281$|
|Rental Commission (5% of the Contract Value if leased out through The Soul Management)||256$||NA|
|Withholding Tax (10% on Long Term Rental Income)||513$||NA|
|Net Rental Income per annum||3,592$||10,897$|
|ROI from Rental Income (not considering value appreciation)||6.16%||18.69%|