We don't normally cover Parow but this ad for a 2 bed flat caught my eye. It's described as "high yield" and is on the market for R475 000. It has a net rental of R1 770 (R2 448 - R678 in rates/levies) which means if you bought it with a 100% bond the difference between the net rental and the bond is nearly 2.5 times the net rental itself. Here's the ROI and payments you can expect:
| Down Payment | Monthly Payment | Cash flow | Annual Income | ROI |
|---|
| R0 | R6079.99 | R-4309.99 | R-51719.87 |
|
| R47500 | R5471.99 | R-3701.99 | R-44423.89 | -93.52% |
| R95000 | R4863.99 | R-3093.99 | R-37127.90 | -39.08% |
| R142500 | R4255.99 | R-2485.99 | R-29831.91 | -20.93% |
| R190000 | R3647.99 | R-1877.99 | R-22535.92 | -11.86% |
| R237500 | R3039.99 | R-1269.99 | R-15239.94 | -6.42% |
| R285000 | R2432.00 | R-662.00 | R-7943.95 | -2.79% |
| R332500 | R1824.00 | R-54.00 | R-647.96 | -0.19% |
| R380000 | R1216.00 | R554.00 | R6648.03 | 1.75% |
| R427500 | R608.00 | R1162.00 | R13944.01 | 3.26% |
| R475000 | R0.00 | R1770.00 | R21240.00 | 4.47% |
I wouldn't exactly describe a maximum ROI of 4% below inflation as 'high yield', but that's just me. An 80% downpayment is needed to break even on cashflow. Putting down a 50% downpayment still requires capital appreciation of 3.2% just to not lose any money in the first year.
We don't normally cover Parow but this ad for a 2 bed flat caught my eye. It's described as "high yield" and is on the market for R475 000. It has a net rental of R1 770 (R2 448 - R678 in rates/levies) which means if you bought it with a 100% bond the difference between the net rental and the bond is nearly 2.5 times the net rental itself. Here's the ROI and payments you can expect:
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