Rent Vs. Buy: Stellenbosch

2 bedroom flat being marketed as student accomodation (and that means maintenance costs are a lot more). Asking price R965 000, rents for between R3 800 and R4 500 a month. Let's give them the benefit of the doubt and say it rents for R4 500.

Down Payment	Monthly Payment	Cash flow	Annual Income	ROI
R0	R11305.71	R-6805.71	R-81668.47
R96500	R10175.14	R-5675.14	R-68101.62	-70.57%
R193000	R9044.56	R-4544.56	R-54534.77	-28.26%
R289500	R7913.99	R-3413.99	R-40967.93	-14.15%
R386000	R6783.42	R-2283.42	R-27401.08	-7.10%
R482500	R5652.85	R-1152.85	R-13834.23	-2.87%
R579000	R4522.28	R-22.28	R-267.39	-0.05%
R675500	R3391.71	R1108.29	R13299.46	1.97%
R772000	R2261.14	R2238.86	R26866.31	3.48%
R868500	R1130.57	R3369.43	R40433.15	4.66%
R965000	R0.00	R4500.00	R54000.00	5.60%

5.6% ROI. Break even on cash flow (before rates and maintenance... a whole lot of maintenance) at R580 000 down. As the ad says "GREAT INVESTING OPPORTUNITY".