03 May 2006

De Waterkant: Rent Vs. Buy

Want to buy in De Waterkant? You'll be paying at least R1.5 millionfor a flat (R12000 a month mortage with 20% down). Want to rent? It'll cost you about R4700 (at least that's what the ad said in todays classified).

Want to buy a 4 bedroom/2 bathroom house? It's gonna cost you around R5 million, R40 000 a month, with a whopping 20% downpayment of R1 million. Renting a 4 bedroomed/2 bathroom house will cost you R14000.

If that doesn't indicate some kind of fundamental disconnect between property prices and and rentals I don't know what does.

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