26 September 2007

Rent Vs. Buy: The Rockwell

The Rockwell is complete (despite 20% of the apartments still being on sale) and rental units are also now available.

A 1 bedroomed unit is renting for R 5 500 while the cheapest 1 bedroomed unit I can find for sale costs R1 520 000.












Down PaymentMonthly PaymentCash flowAnnual IncomeROI
R0R18352.10R-12852.10R-154225.14
R152000R16516.89R-11016.89R-132202.63-86.98%
R304000R14681.68R-9181.68R-110180.11-36.24%
R456000R12846.47R-7346.47R-88157.60-19.33%
R608000R11011.26R-5511.26R-66135.09-10.88%
R760000R9176.05R-3676.05R-44112.57-5.80%
R912000R7340.84R-1840.84R-22090.06-2.42%
R1064000R5505.63R-5.63R-67.54-0.01%
R1216000R3670.42R1829.58R21954.971.81%
R1368000R1835.21R3664.79R43977.493.21%
R1520000R0.00R5500.00R66000.004.34%


Meanwhile a two bedroomed unit is renting for R7 500 and the cheapest I could find an equivalent one for is R1 810 000.












Down PaymentMonthly PaymentCash flowAnnual IncomeROI
R0R21853.48R-14353.48R-172241.78
R181000R19668.13R-12168.13R-146017.60-80.67%
R362000R17482.79R-9982.79R-119793.42-33.09%
R543000R15297.44R-7797.44R-93569.25-17.23%
R724000R13112.09R-5612.09R-67345.07-9.30%
R905000R10926.74R-3426.74R-41120.89-4.54%
R1086000R8741.39R-1241.39R-14896.71-1.37%
R1267000R6556.04R943.96R11327.470.89%
R1448000R4370.70R3129.30R37551.642.59%
R1629000R2185.35R5314.65R63775.823.92%
R1810000R0.00R7500.00R90000.004.97%


In both cases you've got to put over a million in down payment just to get positive cashflow and that's before rates, maintenance and vacancy. And those sub 5% ROIs don't exactly look promising.

2 comments:

Anonymous said...

R5500 for 1 bed, and R7500 for 2 beds? that's too optimistic. i pay R5300 for 2 beds in century city which was meant to be R6500-R7000. methinks them specuvators will be more than willing to negotiate.

HTB said...

That's true. We'll have to see if they can actually command those rents.