Here's a 1 bed(?) apartment in Muizenberg is on sale for R795 000 and 'may command a rental upwards of R3 000' (or it may not). Levies are R630/month bringing the net rental to R2 370. Which means that on a 100% bond the difference between the rent and the bond is 3.3 times the bond itself. That means some horrible rental yields but never fear because according to the ad it has an '...estimated growth rate 10-15% pa'. I guess someone hasn't been paying attention to the news? Here's the payment and yield graphs:
So if you pay in cash you van expect a 3.58% return on investment. With a 50% downpayment the property has to appreciate by 4.4% just to not lose any money at all. a 76% downpayment is require d to break even on cashflow.
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