Rent Vs Buy: City Bowl - An Albatross For Years To Come

Here's a 2 bedroomed apartment in the City Bowl on the market for R1 195 000 with a rental of R5200 a month and tenanted till December 2008. Described as a "Good investment for years to come." The difference between the rent and the bond payment is just under twice the rental. Here's the yield and payment graph.
Sub 6% returns if you buy it for cash witha 66% downpayment required to break even on cash flow and 2.46% capital appreciation required even if you put down a 50% deposit and of course these numbers will be lower once rates, maintenance and vacancy costs are taken into account. But hey you've got a tenant locked in till December! The sucker!