Purchase price: R1 180 000. 100% bond: R15 975/monthRental: R5 500/month before rates, maintenance and vacancy.
65.57% (R773 760) deposit required to break even on cash flow. 5.59% ROI when paying in cash. 2.53% capital appreciation required with 50% deposit.
2 comments:
This property is, at best, worth R800K, if that!
It is situated at Sandown Crescent where one bedrooms are selling for R599K and two bedrooms at R750K through agents.
I love the way the adverts says ''perfect investment''...its anything but that. Its gross return is 5.6% making its nett return below 4.5% as the rates and levies are in the region of R1000 plus per month.
The advert stinks of desperation and dumbness at the same time.
I live in Royal Ascot. Love the area (from a community/safety/location perspective) but prices are indeed HIGH!!!
But I'd like to comment on something I am hoping others will come forth with.
I earn a lavish R372k pa (R31k pm). I look at the property magazines/websites every week, and yet, still cant afford most of the places (considering I earn a pretty decent salary).
Where are all these so called "cheap, price falling" properties? Just curious...
Are there other professionals out there with good salaries that feel the same? I mean, I really dont see the market dropping as fast or as hard as it seems? HELP!
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