Interesting advice for "investors" from the very same website -
"For instance if you buy a property for R 1 000 000, the mortgage repayments would be around R 10 000 a month – now even with say 3 months voids, if that property goes up 10% in the first year – you have made a huge return on investment over the year – often because this is not cash in hand new investors can lose sight of this. "
I see - so we have 100,000 buying costs, 120,000 bond payments and 8000 rates in the negative column, in the positive column we have 27000 rent and 100,000 appreciation - leaving an overall LOSS of 101,000 ... sorry, he's lost me here, isn't the point of an investment to actually make money ... ?
Ha that's a good catch. They always leave out the purchasing costs. And of course after 3 years when you want to sell you can say cheers to 3-6% of the purchase price as well to agent commission.
Same house, same agency, R200 000 difference. R1 800 000 Vs. R1 600 000
3 comments:
Interesting advice for "investors" from the very same website -
"For instance if you buy a property for R 1 000 000, the mortgage repayments would be around R 10 000 a month – now even with say 3 months voids, if that property goes up 10% in the first year – you have made a huge return on investment over the year – often because this is not cash in hand new investors can lose sight of this. "
I see - so we have 100,000 buying costs, 120,000 bond payments and 8000 rates in the negative column, in the positive column we have 27000 rent and 100,000 appreciation - leaving an overall LOSS of 101,000 ... sorry, he's lost me here, isn't the point of an investment to actually make money ... ?
Ha that's a good catch. They always leave out the purchasing costs. And of course after 3 years when you want to sell you can say cheers to 3-6% of the purchase price as well to agent commission.
On a clear day when there is no clouds on table mountain the price is R1.8m, any other day its R1.6m
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