This house in Rondebosch is on sale for R4 250 000 and is currently used as a digs for students. According to the ad it brings in a rental of "up to R27 400". So let's work out the return on investment if we were to buy this "income-generator":| Down Payment | Monthly Payment | Cash flow | Annual Income | ROI |
|---|---|---|---|---|
| R0 | R54399.91 | R-26999.91 | R-323998.86 | |
| R425000 | R48959.91 | R-21559.91 | R-258718.97 | -60.88% |
| R850000 | R43519.92 | R-16119.92 | R-193439.09 | -22.76% |
| R1275000 | R38079.93 | R-10679.93 | R-128159.20 | -10.05% |
| R1700000 | R32639.94 | R-5239.94 | R-62879.32 | -3.70% |
| R2125000 | R27199.95 | R200.05 | R2400.57 | 0.11% |
| R2550000 | R21759.96 | R5640.04 | R67680.46 | 2.65% |
| R2975000 | R16319.97 | R11080.03 | R132960.34 | 4.47% |
| R3400000 | R10879.98 | R16520.02 | R198240.23 | 5.83% |
| R3825000 | R5439.99 | R21960.01 | R263520.11 | 6.89% |
| R4250000 | R0.00 | R27400.00 | R328800.00 | 7.74% |
Although I like how the ad proclaims: ' DON'T MISS OUT ON THIS MONEY SPINNER', when it has a ROI 1.5% below inflation. A fixed deposit will earn 9.75% interest a year and is also less hassle than when you have to call out the steam cleaners to get beer out the passage carpet for the umpteenth time..
5 comments:
Let's hear it for the seller of 14 Richter Street in Cape Town's deeply depressing northern subs (www.privateproperty.co.za, ref number E4325) who just offloaded his/her property for R1,45 million, after having it on the market for 8 months, and dropping their price from R1,81 million back in July.
Who says properties aren't moving? All you have to do is wait 8 months and drop your asking price by 20%.
LOL - nice research Bean Counter - it will be interesting to see more of the same to get a better idea of what is happening out there in bubbleland
Thanks for the info BC. I wonder if the actual price received as 1.45 million because that was the last asking price not what was actually paid. It could have been less (although I saw on the ad page they rejected an offer below 1.3 million)
Estate agents really shouldn't leave old magazines lying around - all this is from finding the July 07 issue of the Private Property catalogue, and tracking every property in that issue.
I'm tracking places all over the country, and interestingly so far my Biggest Losers list features places from all over. Midrand and Fourways still booming - people even raising their asking prices! - but for how much longer?
That Richter Street sale was one of my best Losers, but some others to watch: McMansion in northern Pretoria (E1111), already down 15% from R1,1 million to R930k; and a Parklands horror (D6796), down 16% since July and still no takers.
BC
You are right CT Bubble - price was now 1.45 neg - 2 days earlier a 1.3m offer was rejected - we must assume the offer was increased a little and it was then sold. 1.35m possibly - that would give us a 25% decrease on original asking price.
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