Here's an "excellent investment" bachelor pad in Observatory on the market for R570 000 with a rental of R2 800. With a full bond the difference between the rent and the monthly payments is just over 1.5 times the rent itself. Here's the yield and payment graph:
Before rates, levies, maintenance and vacancy costs are taken into account purchasing the place for cash gets you a mere 5.89% about 3% below official inflation numbers. A 62% downpayment is required to break even on cash flow and even with 50% downpayment 2% capital appreciation is required to not lose any money at all.
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