Rent Vs Buy: Claremont

Here's a 'perfect investment' bachelor flat in Claremont for sale for R635 000 with a 'potential' rental income of R3 000 a month. Levies are R543 a month so your net income is about R2 457 a month. The ROI will be:

Down Payment	Monthly Payment	Cash flow	Annual Income	ROI
R0	R8127.99	R-5670.99	R-68051.83
R63500	R7315.19	R-4858.19	R-58298.25	-91.81%
R127000	R6502.39	R-4045.39	R-48544.66	-38.22%
R190500	R5689.59	R-3232.59	R-38791.08	-20.36%
R254000	R4876.79	R-2419.79	R-29037.50	-11.43%
R317500	R4063.99	R-1606.99	R-19283.91	-6.07%
R381000	R3251.19	R-794.19	R-9530.33	-2.50%
R444500	R2438.40	R18.60	R223.25	0.05%
R508000	R1625.60	R831.40	R9976.83	1.96%
R571500	R812.80	R1644.20	R19730.42	3.45%
R635000	R0.00	R2457.00	R29484.00	4.64%

A 70% deposit is required to break even and if you pay in cash you can look forward to 4.64% return on investment, or roughly 3.4% below inflation (and 5% below leaving your money in a fixed deposit). Truly a 'perfect investment' if ever there was one.