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 Payment | Monthly Payment | Cash flow | Annual Income | ROI |
|---|---|---|---|---|
| R0 | R18352.10 | R-12852.10 | R-154225.14 | |
| R152000 | R16516.89 | R-11016.89 | R-132202.63 | -86.98% |
| R304000 | R14681.68 | R-9181.68 | R-110180.11 | -36.24% |
| R456000 | R12846.47 | R-7346.47 | R-88157.60 | -19.33% |
| R608000 | R11011.26 | R-5511.26 | R-66135.09 | -10.88% |
| R760000 | R9176.05 | R-3676.05 | R-44112.57 | -5.80% |
| R912000 | R7340.84 | R-1840.84 | R-22090.06 | -2.42% |
| R1064000 | R5505.63 | R-5.63 | R-67.54 | -0.01% |
| R1216000 | R3670.42 | R1829.58 | R21954.97 | 1.81% |
| R1368000 | R1835.21 | R3664.79 | R43977.49 | 3.21% |
| R1520000 | R0.00 | R5500.00 | R66000.00 | 4.34% |
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 Payment | Monthly Payment | Cash flow | Annual Income | ROI |
|---|---|---|---|---|
| R0 | R21853.48 | R-14353.48 | R-172241.78 | |
| R181000 | R19668.13 | R-12168.13 | R-146017.60 | -80.67% |
| R362000 | R17482.79 | R-9982.79 | R-119793.42 | -33.09% |
| R543000 | R15297.44 | R-7797.44 | R-93569.25 | -17.23% |
| R724000 | R13112.09 | R-5612.09 | R-67345.07 | -9.30% |
| R905000 | R10926.74 | R-3426.74 | R-41120.89 | -4.54% |
| R1086000 | R8741.39 | R-1241.39 | R-14896.71 | -1.37% |
| R1267000 | R6556.04 | R943.96 | R11327.47 | 0.89% |
| R1448000 | R4370.70 | R3129.30 | R37551.64 | 2.59% |
| R1629000 | R2185.35 | R5314.65 | R63775.82 | 3.92% |
| R1810000 | R0.00 | R7500.00 | R90000.00 | 4.97% |
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:
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.
That's true. We'll have to see if they can actually command those rents.
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