This loft is on the market for a cool R3 400 000. It attains a gross rental of R15 000, minus rates/levies of R2 000 to give you a net rental income of R13 000/month. With a 100% bond the difference between the monthly bond payment of R46 031 and the rental income is R33 031/month more than twice the rental attained every month! Now before we go to the payment and yield graph click on that picture on the left. That's what 3.4 bar is going to get you. I've seen warehouses in Montague Gardens look more homely.
Here's the payment and yield graph:
Paying for the place in cash will get you a 4.59% return on investment, about 7%-8% below inflation. With a 50% deposit you still need 3.54% capital appreciation not to lose any money and if you want to be cashflow positive well you're going to have to put down a whopping 71.76% downpayment!! That means you have to invest R2 439 797 to make R0 back. What a deal, I'll take two!
No comments:
Post a Comment