26 February 2008

Rent Vs. Buy: Tyger Valley

Here's a 2 bed apartment in Tyger Valley for sale for R850 000 with a rental of R3 600. Here's the ROI and payments you can expect:












Down PaymentMonthly PaymentCash flowAnnual IncomeROI
R0R10879.98R-7279.98R-87359.77
R85000R9791.98R-6191.98R-74303.79-87.42%
R170000R8703.98R-5103.98R-61247.82-36.03%
R255000R7615.99R-4015.99R-48191.84-18.90%
R340000R6527.99R-2927.99R-35135.86-10.33%
R425000R5439.99R-1839.99R-22079.89-5.20%
R510000R4351.99R-751.99R-9023.91-1.77%
R595000R3263.99R336.01R4032.070.68%
R680000R2176.00R1424.00R17088.052.51%
R765000R1088.00R2512.00R30144.023.94%
R850000R0.00R3600.00R43200.005.08%


5% ROI when paying for it in cash with 70% down payment needed to break even on cash flow. And this is before rates/levies, maintenance and vacancy costs.

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