Ah the 2010 World Cup. It's the perfect reason to
buy a property for R395 000 with a tenant renting for R1 700/month. It doesn't matter if the property is located over 40km from the nearest world cup venue (with only one of the most congested highways in the city between you and the stadium) or that it has a pititful 5% ROI (before rates, maintenance and vacancy cotsts) when paid for entirely in cash. I mean the World Cup right? It says so in the ad. It has to be a good investment.
| Down Payment | Monthly Payment | Cash flow | Annual Income | ROI |
|---|
| R0 | R4769.13 | R-3069.13 | R-36829.56 |
|
| R39500 | R4292.22 | R-2592.22 | R-31106.60 | -78.75% |
| R79000 | R3815.30 | R-2115.30 | R-25383.65 | -32.13% |
| R118500 | R3338.39 | R-1638.39 | R-19660.69 | -16.59% |
| R158000 | R2861.48 | R-1161.48 | R-13937.74 | -8.82% |
| R197500 | R2384.56 | R-684.56 | R-8214.78 | -4.16% |
| R237000 | R1907.65 | R-207.65 | R-2491.82 | -1.05% |
| R276500 | R1430.74 | R269.26 | R3231.13 | 1.17% |
| R316000 | R953.83 | R746.17 | R8954.09 | 2.83% |
| R355500 | R476.91 | R1223.09 | R14677.04 | 4.13% |
| R395000 | R0.00 | R1700.00 | R20400.00 | 5.16% |
Ah the 2010 World Cup. It's the perfect reason to buy a property for R395 000 with a tenant renting for R1 700/month. It doesn't matter if the property is located over 40km from the nearest world cup venue (with only one of the most congested highways in the city between you and the stadium) or that it has a pititful 5% ROI (before rates, maintenance and vacancy cotsts) when paid for entirely in cash. I mean the World Cup right? It says so in the ad. It has to be a good investment.
3 comments:
This one goes out to all those property bulls out there who keep banging on about the Black Diamonds who are going to sustain price growth. In today's Sunday Times, with headline "Black Diamonds Aren't Really Making It."
"Most of black middle class unable to afford the lifestyle
A mere 300000 of South Africa’s 2.6 million Black Diamonds can afford the trappings of middle-class life."
The SA Institute of Race Relations also "warns that the growth in the true middle-class segment, those who earn above R12000 — largely due to the government’s affirmative-action and economic-empowerment policies — cannot be sustained."
See you after the 30% fall in SA property prices!
Has anyone reading all this 2010 BS ever thought why it would matter in the least??? Take yourself as an example, would you, yes YOU, would you BUY a property (i.e. make a 20 year plus commitment) for ANYTHING that will last only a month or so???
And if YOU won't... why do you think anyone else would???
Greater fool theory at work in all these 2010 ads. Me, I'm renting a 1.5mil pad ON THE BEACH for 4.5K/month... it almost makes me feel guilty... almost
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