Here's a 3 bed house in a security complex in Stellenbosch on the market for R1 395 000 and which is currently rented out till November for R6 000 a month. With a 100% bond the monthly bond repayment will be R17 974 a month nearly R12 000 a month more than the going rent. Here's the payment and yield graph:
Buying in cash gets you a return on investment of 5.27% with 2.63% capital appreciation required just to not lose any money. Cash flow breaks even with a 66% downpayment, nearly R900 000! And these figures are overstated as rates, levies, maintenance and vacancy have not been taken into account.
1 comment:
Nicely put together...
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