Here's a 1 bed apartment for sale in Long Street on the market for R1 195 000. It's tenanted till January 2011 at R4500/month. Rates and levies total R1441/month leaving a net rental of R3059/month. A 100% bond will require a monthly repayment of R11532/month meaning that the monthly shortfall is R8473/month, nearly 3 times the net rental! Here's the yield graph:
| Down Payment | Monthly Payment | Cash Flow | Annual Income | ROI | Cap. Appr. Required |
|---|
| R0 | R11532.01 | R-8473.01 | R-101676.10 | | 8.51% |
| R119500 | R10378.81 | R-7319.81 | R-87837.69 | -73.50% | 7.35% |
| R239000 | R9225.61 | R-6166.61 | R-73999.28 | -30.96% | 6.19% |
| R358500 | R8072.41 | R-5013.41 | R-60160.87 | -16.78% | 5.03% |
| R478000 | R6919.21 | R-3860.21 | R-46322.46 | -9.69% | 3.88% |
| R597500 | R5766.00 | R-2707.00 | R-32484.05 | -5.44% | 2.72% |
| R717000 | R4612.80 | R-1553.80 | R-18645.64 | -2.60% | 1.56% |
| R836500 | R3459.60 | R-400.60 | R-4807.23 | -0.57% | 0.40% |
| R956000 | R2306.40 | R752.60 | R9031.18 | 0.94% | -0.76% |
| R1075500 | R1153.20 | R1905.80 | R22869.59 | 2.13% | -1.91% |
| R1195000 | R0.00 | R3059.00 | R36708.00 | 3.07% | -3.07% |
Just to break even on cashflow will require a deposit of R878 000, over 70% of the selling price and paying full price in cash will get you a return on investment of 3%.
Remember back in the good old days when a 2 bed/2 bath at The Orangerie was on sale for R2 975 000? I guess the R2 300 000 they're asking for it now can't be too much of an encouraging sign for current owners. 
Here's a 1 bed apartment for sale in Long Street on the market for R1 195 000. It's tenanted till January 2011 at R4500/month. Rates and levies total R1441/month leaving a net rental of R3059/month. A 100% bond will require a monthly repayment of R11532/month meaning that the monthly shortfall is R8473/month, nearly 3 times the net rental! Here's the yield graph:
