29 August 2009
Saturday Open Thread
It's Saturday, it's the open thread and the Boks are about to crush the Ozzies.
22 August 2009
18 August 2009
Sunday Times Doubting One & Only Sale
On the 29th of June we posted an article titled R110 Million Sale Falls Through For Seeff which cast some questions if whether the R110m sale of a penthouse in Sol Kerzner's new V&A Waterfront One & Only development had fallen through. We did so because in listings for the development 3 out of the 3 penthouses built are listed for sale, when there should only be 2.
And quite coincidentally (I'm sure) according to RealestateWeb, the Sunday Times ran an article this past Sunday saying literally the same thing, that the sale was in fact staged by Sol Kerzner as a "sale" to himself with the penthouse being returned to the rental pool of the hotel. And no doubt if a buyer could be found for it would be sold off without a seconds thought as the article we wrote earlier here showed there are in fact 3 penthouses for sale.
I haven't bought the Sunday Times in a while (prefer the non-tabloid Business Day Weekender these days after they gave me a shout out a year ago) so if anyone has the article let me know if it mentioned anything about the supposedly sold apartment coming back on the market and if they attribute that nugget of information to anyone.
And Sunday Times reporters if you're reading, let me know if you need any more story ideas.
And quite coincidentally (I'm sure) according to RealestateWeb, the Sunday Times ran an article this past Sunday saying literally the same thing, that the sale was in fact staged by Sol Kerzner as a "sale" to himself with the penthouse being returned to the rental pool of the hotel. And no doubt if a buyer could be found for it would be sold off without a seconds thought as the article we wrote earlier here showed there are in fact 3 penthouses for sale.
I haven't bought the Sunday Times in a while (prefer the non-tabloid Business Day Weekender these days after they gave me a shout out a year ago) so if anyone has the article let me know if it mentioned anything about the supposedly sold apartment coming back on the market and if they attribute that nugget of information to anyone.
And Sunday Times reporters if you're reading, let me know if you need any more story ideas.
15 August 2009
08 August 2009
01 August 2009
Rent Vs Buy: Bloubergstrand - Invest R1.8m, Make R0.
This 2 bed/2 bath apartment in Blouberg is on the market for R2 650 000. That means with a 100% bond you will currently be paying R27352/month to cover the bond. Or you could rent it for R8 000/month, which means that the difference between rental and bond payment is R19352/month, nearly 2.5 times more than the rental income itself! Here is the dismal Payment and Yield graph.
Right, so paying for the place in full nets you a massive 3.62% return on investment, and to break even on cash flow you need to plonk down over R1 800 000 (a 70% downpayment). Putting down a 50% downpayment of R1 325 000 will still lose you over R60 000/year. Once you take into account rates, levies, maintenance and vacancy costs and the returns will be even lower.
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