18 January 2008

Green Point: Rental Market Is Dead, Time To Sell

A few weeks ago we wrote about two apartments in Green Point which had been for rent since October. Well it seems like the rental market is still dead so the owner is now trying to sell them off. If you buy here's your ROI for the 1 bedroom apartment with asking price R1 205 000 and asking rent R5 800:












Down PaymentMonthly PaymentCash flowAnnual IncomeROI
R0R15423.97R-9623.97R-115487.68
R120500R13881.58R-8081.58R-96978.91-80.48%
R241000R12339.18R-6539.18R-78470.14-32.56%
R361500R10796.78R-4996.78R-59961.37-16.59%
R482000R9254.38R-3454.38R-41452.61-8.60%
R602500R7711.99R-1911.99R-22943.84-3.81%
R723000R6169.59R-369.59R-4435.07-0.61%
R843500R4627.19R1172.81R14073.701.67%
R964000R3084.79R2715.21R32582.463.38%
R1084500R1542.40R4257.60R51091.234.71%
R1205000R0.00R5800.00R69600.005.78%


And for the 2 bedroom apartment, asking price R1 250 000, asking rent R7 000:












Down PaymentMonthly PaymentCash flowAnnual IncomeROI
R0R15999.97R-8999.97R-107999.66
R125000R14399.97R-7399.97R-88799.70-71.04%
R250000R12799.98R-5799.98R-69599.73-27.84%
R375000R11199.98R-4199.98R-50399.77-13.44%
R500000R9599.98R-2599.98R-31199.80-6.24%
R625000R7999.99R-999.99R-11999.83-1.92%
R750000R6399.99R600.01R7200.130.96%
R875000R4799.99R2200.01R26400.103.02%
R1000000R3199.99R3800.01R45600.074.56%
R1125000R1600.00R5400.00R64800.035.76%
R1250000R0.00R7000.00R84000.006.72%


Nothing really fantastic there. Both apartments require R700 000+ deposits just to break even. Those asking rents are also suspect because the flats were never rented out, so the actual rent attainable is probably less than what we have here.

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