|Down Payment||Monthly Payment||Cash flow||Annual Income||ROI|
Sub 6% ROI with a 70% downpayment needed just to break even on cashflow. Not exactly the most scintillating investment is it?
Now here's where it gets interesting. Back in December 2007 we spotlighted another bachelor flat in The Square for R635 000 with a rental of R3 300 a month, which had actually been on sale since May 2007 with an initial selling price of R570 000, which is still on sale today nearly a year later. Now add to it another bachelor flat for a similar price in the same block (although slightly bigger but with a worse rent) and I wonder how long it will take to sell either. The race (to the bottom) is on!