Century City Investors Getting "Desperate" To Rent

Here's an anecdote sent in from a reader

i was shown a 2b, 2b apartment in knightsbridge in century city.
it came down from 7 grand to 6 500 per month. the agent told me that the
owner could actually consider less because she is desperate. the "value"
is estimated at 1.8 mil.

Well Ms Specuvestor should be because unless she put down a 70% downpayment she's losing money:

Down Payment	Monthly Payment	Cash flow	ROI
R180000	R17837.60	R-11337.60	-75.58%
R360000	R15855.64	R-9355.64	-31.19%
R540000	R13873.69	R-7373.69	-16.39%
R720000	R11891.73	R-5391.73	-8.99%
R900000	R9909.78	R-3409.78	-4.55%
R1080000	R7927.82	R-1427.82	-1.59%
R1260000	R5945.87	R554.13	0.53%
R1440000	R3963.91	R2536.09	2.11%
R1620000	R1981.96	R4518.04	3.35%
R1800000	R0.00	R6500.00	4.33%

And unless she's put down more than 30% as downpayment not even capital appreciation (estimated 6%-9%) is going to help.

Our reader was also kind enough to give us some info on what the average rentals are in Century City.

Villa Italia

1 bed, 1 bath R3,500.00 Unfurnished
1 bed, 1 bath R5,500.00 furnished
2 bed, 2 bath R4,500.00
2 bed, 2 bath double volume loft R5,500.00
3 bed, 2 bath R5,500.00
3 bed, double volume loft R6,000.00 - R7,000.00

Bougain Villas

1 bed, full bathroom R3,500.00
2 bed, 1 bath R4,300.00
2 bed, 2 bath R4,500.00
3 bed house, 2 bath, double garage R6,000.00 - R7,000.00

The Island Club

1 bed, 1 bath R3,800.00
2 bed, 2 bath, 77 sqm R4,800.00
2 bed, 100 sqm, garden R5,500.00
3 bed R6,000.00 - R7,000.00


Century View

3 bed free standing houses R6,000.00 - R7,000.00

Knightsbridge

1 bed 51 sqm R4,000.00
2 bed 76 sqm R5,000.00
2 bed 100 sqm R6,000.00 - R7,000.00
3 bed R7,000.00 - R7,500.00