Pay for the place in cash and you can expect a 4.83% return on investment. About 7% below what your money would earn sitting in the bank. Just to get cash flow positive you need to put down R551 984m a hair under 70%, as deposit. Put down 50% deposit and you still need over 3% capital appreciation to not lose any money at all. Take of rates, levies, maintenance and vacancy costs and the returns drop even more.
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I was listening to some bloke by name of 'whatever' Du Toit from FNB on SAFM the other day blatting on about how buyers should get into the market NOW to scoop up the bargains.... ?????
Surely these blokes should be held liable if someone goes and buys on the basis of such ill intended advice?
Standard Banks smoothed median house price is probably the most accurate out there since it's more sensitive to short term factors. It came in at -3.6% over the previous -3.1% and CLEARLY indicates that the trend is not only down but that it is worsening.
And then some idiot from a bank comes and says BUY! Well I suppose anyone who is stoopid enough to follow such advice probably deserves to lose his shirt.
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