Rent Vs Buy: Gardens - With New Interest Rates

Here's the first Rent Vs Buy using the new prime interest rates at 15%. We have a 41m^2 one bed apartment in Gardens for sale for R675 000 with a net rental of R2 426 per month (R3 500 gross - R1 074 in rates and levies, ouch!). That means with a full bond the difference between the net rental and the monthly payment is 2.6 times the rent itself! Here's the yield and payment graph:

Buying for cash gets you a 4.31% return on investment with a 72.7% downpayment required to break even on cash flow. Putting down a 50% downpayment requires 3.59% capital appreciation just to not lose any money at all.