Are you in the market to lose R400 000 in capital value over two years? Are you interested in buying into a resale market that is so small it might as well not exist? Do you enjoy having 'administrative' fees chop 20% off your rental 'income'?Then buying a room in a hotel is for you!
Take, for instance, the Protea North Wharf situated in sunny Cape Town. In 2008 a room was on the market for R2.2 million, today they're going for a steal at R1.8 million. And with an estimated R10 000 income (in 2008, before fees) you'll only be losing R6 000/month unless you put down at least a R700 000 deposit and that's at today's rock bottom interest rate.
2 comments:
The ad reads "Be apart of this great investment". Apart as far as possible...
It's still way overpriced. The whole idea of selling hotel rooms seems flawed to me. You are buying an "asset" you are not allowed to use yourself continually. That's not an asset IMHO.
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