Fantastic rental investment as it is situated directly behind the cape tech (constitution street). Currently rented out for R5,500pm and has been rented every day since i bought it. Upcoming body corporate redecorations will cost approx R25,000 per unit (5 flats in complex).
Let's run the numbers and remember these are returns before rates, insurance and maintenance.
| Down Payment | Monthly Cash Flow | ROI |
|---|---|---|
| 100000 | -2237 | -27 |
| 200000 | -1239 | -7 |
| 300000 | -241 | -1 |
| 400000 | 758 | 2 |
| 500000 | 1756 | 4 |
| 600000 | 2754 | 6 |
| 700000 | 3753 | 6 |
| 800000 | 4751 | 7 |
So to get a maximum return of 7% you need to invest almost the full mortage. A 50% downpayment of R400 000 gets you a measly 2% return. Hell, 3 month fixed deposits start at 6%...
No comments:
Post a Comment