Here's a house in University Estate that is for sale for R1 195 000 or the owner is willing to rent it out for R4 800 a month. If you were to buy at the asking price and could get the going rent what kind of ROI can you expect?| Down Payment | Monthly Payment | Cash flow | Annual Income | ROI |
|---|---|---|---|---|
| R0 | R15295.97 | R-10495.97 | R-125951.68 | |
| R119500 | R13766.38 | R-8966.38 | R-107596.51 | -90.04% |
| R239000 | R12236.78 | R-7436.78 | R-89241.34 | -37.34% |
| R358500 | R10707.18 | R-5907.18 | R-70886.18 | -19.77% |
| R478000 | R9177.58 | R-4377.58 | R-52531.01 | -10.99% |
| R597500 | R7647.99 | R-2847.99 | R-34175.84 | -5.72% |
| R717000 | R6118.39 | R-1318.39 | R-15820.67 | -2.21% |
| R836500 | R4588.79 | R211.21 | R2534.50 | 0.30% |
| R956000 | R3059.19 | R1740.81 | R20889.66 | 2.19% |
| R1075500 | R1529.60 | R3270.40 | R39244.83 | 3.65% |
| R1195000 | R0.00 | R4800.00 | R57600.00 | 4.82% |
4.82% return if you pay in cash and a 70% downpayment required just to break even. And that's before you deduct maintenance, rates and vacancy costs.
3 comments:
I thought it was bad in Ireland(which it is by the way). But this is jaw droppingly loopy.
Funny you should mention Ireland because Cape Town was invaded when the bubble began by developers throwing up "investment" apartment blocks with horrible rental yields. I guess they know a pliable market.
Invaded by Irish developers that is...
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