26 July 2006

Investment Properties That Aren't

Here's an ad in today's paper for a flat for sale in Moullie Point:
MOUILL POINT Investors 1 bed, R1 190 000 incl. tenant - R7 000 p/m.

Let's run those numbers:












Down PaymentMonthly Cash FlowROI
100000-4251-51
200000-3219-19
300000-2186-9
400000-1154-3
500000-1220
6000009102
70000019423
80000029744
90000040075
100000050396
110000060717


So to break even you'll need to put down a 50% deposit. And that rental is waay too high for a one bedroom. Two bedroom flats can easily be found for R6500 with one bedroom flats going for less than R4000/month.

1 comment:

Anonymous said...

Your email isn't working, so posting this here.

Check out www.fin24.co.za today - piece on developers bailing out in Joburg, and being left owning (and bleeding for) up to 50% of their unwanted babies.

Cool site.