This 24m^2 bachelor flat in Gardens is on the market for R539 000 and has a gross rental income for R2 800. With a 100% bond you'd be paying in an extra R4 497 a month just to cover the R7 297 bond payments, the difference of R4 497 being 1.6 times the rental income. Here's the payment and yield graph.
So a 6.23% ROI if you buy in cash, about 4.5% below inflation. With a 50% deposit 1.89% capital appreciation is required to not lose any money and to break even on cash flow requires a 61% downpayment( over R330 000).
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