Rent Vs Buy: Kraaifontein Property Portfolio.

Here's something strange, an entire property portfolio up for sale comprising 3 free standing homes and 3 apartments located in Kraaifontein. Asking price is R3 255 000 and the rental income is R17 700 a month. What kind of returns should you expect if you bought this portfolio?

Down Payment	Monthly Payment	Cash flow	Annual Income	ROI
R0	R38134.79	R-20434.79	R-245217.47
R325500	R34321.31	R-16621.31	R-199455.73	-61.28%
R651000	R30507.83	R-12807.83	R-153693.98	-23.61%
R976500	R26694.35	R-8994.35	R-107932.23	-11.05%
R1302000	R22880.87	R-5180.87	R-62170.48	-4.77%
R1627500	R19067.39	R-1367.39	R-16408.74	-1.01%
R1953000	R15253.92	R2446.08	R29353.01	1.50%
R2278500	R11440.44	R6259.56	R75114.76	3.30%
R2604000	R7626.96	R10073.04	R120876.51	4.64%
R2929500	R3813.48	R13886.52	R166638.25	5.69%
R3255000	R0.00	R17700.00	R212400.00	6.53%

Ow. You need to put down a R1.8 million just to break even on cashflow. And this is before rates and maintenance (and Kraaifontein ain't exactly known for the workmanship of it's houses). Paying for the whole thing in cash gets you 6.53% ROI. Which is about 2% less it would earn sitting in the bank.