Reader DM sent us a link to a 2 bed apartment for sale at The Orangerie (how we missed you!). Here's the text of the ad:The best of the best
What better place to live! tenanted until 31st December 2010 @ R8,000 p/m.
And the asking price? Only R2 850 000. Which means a 100% bond would require a monthly bond payment of R25 642/month.
So you can rent for R8 000/month or pay R25 642/month to own. To put that in perspective to get your bond payment down to the same level as the rent you would need to a down payment of around R2 million.
Anyway if you're buying for investment this is a terrible option (unless you enjoy losing R18 000/month), you don't need me to tell you that but here's the yield/cashflow graph anyway:
| Down Payment | Monthly Payment | Cash Flow | Annual Income | ROI | Cap. Appr. Required |
|---|---|---|---|---|---|
| R0 | R25642.19 | R-17642.19 | R-211706.28 | 7.43% | |
| R285000 | R23077.97 | R-15077.97 | R-180935.65 | -63.49% | 6.35% |
| R570000 | R20513.75 | R-12513.75 | R-150165.02 | -26.34% | 5.27% |
| R855000 | R17949.53 | R-9949.53 | R-119394.39 | -13.96% | 4.19% |
| R1140000 | R15385.31 | R-7385.31 | R-88623.77 | -7.77% | 3.11% |
| R1425000 | R12821.09 | R-4821.09 | R-57853.14 | -4.06% | 2.03% |
| R1710000 | R10256.88 | R-2256.88 | R-27082.51 | -1.58% | 0.95% |
| R1995000 | R7692.66 | R307.34 | R3688.12 | 0.18% | -0.13% |
| R2280000 | R5128.44 | R2871.56 | R34458.74 | 1.51% | -1.21% |
| R2565000 | R2564.22 | R5435.78 | R65229.37 | 2.54% | -2.29% |
| R2850000 | R-0.00 | R8000.00 | R96000.00 | 3.37% | -3.37% |
1 comment:
I remember seeing those flats when being built. Cheap material! Mostly estate agents bought the top flats before they were even advertised as "off plan". Now they realize they made a big mistake. Very small, overlooked by your neighbour, noisy road and very expensive for what they are
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