12 March 2009

Mouille Point: How You Know The Seller Has No Clue

Folks sometimes an advertisement comes along which just perfectly illustrates that there are sellers out there that have no clue what the hell they are doing. Let's take a look at this gem:

STUNNING SEA FRONT APARTMENT IN MOUILLE POINT. 3 BEDS, 2 BATHS. FITTED KITCHEN WITH ALL APPLIANCES. LOCK-UP GARAGE AND SECURE PARKING BAY. PRICE R5,000,000 OR RENTAL R15,000 PER MONTH.

So let's analyse this ad. If you were to take out a 100% bond on this apartment you would be paying R62 176/month, which means that the difference between the rental (R15 000/month) and the bond payments is R47 176/month, over three time the rental itself! The owner is either selling it for way too much, or the rent is way too low.

Let's take a look at the (awful) payment and yield graph:

I'm not going to even comment, it pretty much speaks for itself.

5 comments:

Anonymous said...

And that's discounting transfer costs of R376 000 (according to ooba's online calculator) & monthly levies.

Anonymous said...

Yowza! The transfer costs are over two years worth of rent!

Anonymous said...

my assistant rents a house in Imhoffs Gift that is for sale now for 1.8 mill. Her rent is R3500 per month! No suprise that she is not taking up the offer to purchase.

Anonymous said...

and this is over 20 years nogal. Imagine the financing costs over 30 years, eish!

Anonymous said...

or maybe just maybe the owner doesnt want to sell but would like you to think R15K pm is a very good deal......now who has no clue???