That's pretty bad. A 75% downpayment to break even on cash flow and a just over 4% ROI if you buy in cash. But ignore that because the price of property 100km from Cape Town and 6km from the coast are just set to skyrocket right?
17 November 2008
Rent Vs Buy: Malmesbury
We usually don't go this far out of Cape Town but here's a house for sale in Malmesbury, or rather as it says in the ad 22km behind Malmesbury and 6km inland, with an asking price of R990 000. With a 100% bond you'd be paying just over R13 400/month. Or you could rent it for R3 300 a month, just over 3 times the monthly difference (R10 103) between the rental and bond price. Here's the yield and payment graph.
That's pretty bad. A 75% downpayment to break even on cash flow and a just over 4% ROI if you buy in cash. But ignore that because the price of property 100km from Cape Town and 6km from the coast are just set to skyrocket right?
That's pretty bad. A 75% downpayment to break even on cash flow and a just over 4% ROI if you buy in cash. But ignore that because the price of property 100km from Cape Town and 6km from the coast are just set to skyrocket right?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment