This apartment in Green Point is on sale for R1 895 000 (and on auction soon afterwards) with a tenant in till March 2009 paying R8 500 a month. I love how the ad puts 5% yield right in the ad title, as if a return on investment 5% below inflation is a good thing. With a 100% bond the difference between the rent and the bond payments is just under twice the rental itself. Here's the payment and yield graph:
5.38% ROI when you buy in cash with 2.52% capital appreciation required with 50% down not to lose any money at all. To be cash flow positive you need to put down a whopping R1 250 000 (65%). Not exactly a "great investment/great buy" is it?
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