Rent V.s Buy: Knightsbridge

We haven't done one of these in a while but here's an investor trying to either sell or rent out his investment property in Knightsbridge in Century City. First the rental advert:

CENTURY CITY KNIGHTSBRIDGEUltra modern secure 2 bed, 2bath, balcony, indoor gym, heated pool, sauna & steambath, panoramic view, basement parking for 2 cars, R5 990. 1St come, 1st served

And now for the sale advert

CENTURY CITY KNIGHTSBRIDGEUltra modern secure 2 bed, 2bath, balcony, indoor gym, heated pool, sauna & steambath, panoramic view, basement parking for 2 cars, R1.390mil. 1St come, 1st served

So we can rent th place for R5990 a month or buy it for R1.39 million. If you bought that what kind of return could you expect?

Down Payment	Monthly Payment	Cash flow	ROI
R139000	R14213.12	R-8223.12	-70.99%
R278000	R12633.88	R-6643.88	-28.68%
R417000	R11054.65	R-5064.65	-14.57%
R556000	R9475.41	R-3485.41	-7.52%
R695000	R7896.18	R-1906.18	-3.29%
R834000	R6316.94	R-326.94	-0.47%
R973000	R4737.71	R1252.29	1.54%
R1112000	R3158.47	R2831.53	3.06%
R1251000	R1579.24	R4410.76	4.23%
R1390000	R0.00	R5990.00	5.17%

You have to put down R970 000 just to break even and paying the whole thing in cash gets you a 5% return. And remember thats before rates, maintenance and vacancy costs.