This 2 bed apartment in the Tyger Waterfront is on sale for R890 000 and has a "possible" rental of R4 000 a month (ie you might be getting less). Take away rates and levies of R687 and R234 a month and your net rental income is R3 077 a month, which means that the difference between the monthly bond payment (R11 719 a month) and the net rental is R8 642, which is nearly 2.8 times greater than the net rental itself! Here's the payment and yield graph:
So buying this "life style" will give you a 4.15% return on investment, nearly 6% below inflation. To break even on cashflow you need a whopping 73% downpayment (R656 325) and putting down 50% as a deposit still requires 3.15% capital appreciation to not lose any money at all! Rates and levies are taken into account but vacancy and maintenance are not.
1 comment:
Load of crap. i owe a flat in the Tygerwaterfront are and got tenants in 1weeks time...Ye its expensive to live there but if you want the best you better pay for it. Or else go and live in Parow.
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