On a 100% bond your monthly payments are R33 944/month, the difference between that and the gross rent being R19 944/month or about R240 000/year. Added to that the bond costs are R275 000, worth about 20 months (1 3/4 years) rent. And that's all for gross rent. Take away levies (which I will bet are not cheap in this block), rates and maintenance and the picture gets even worse.
Here's the yield graph:
To break even on cash flow you need to put down just under R2 000 000. I repeat to not lose ANY money at all you need to invest close on two bar. Paying for the place in cash you can expect a ROI of just under 5%.
3 comments:
drove past the organgerie this morning. looks rather bland and boring to me. definitely not worth the bucks they are asking for rent let alone purchase.
I have been told that all the flats on top floors were bought off plan by estate agents, before the public knew about the flats going to be built.
Glad that now they are having trouble selling/renting.
It serves them right if they lose money!
finishes terrible. marketed by pg as luxury. what a laugh. know about an apartment where basin in kitchen fell to floor when someone was doing dishes. know of someone else who refused to take handover due to multitude of snags
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