Saturday Open Thread

Todays conversation starter is on the proposed new Amalfi development in Mouille Point. From an email:

Which stupid (wealthy) person will pay 4.5m for a 100sq meters 1
bedroom apartment when the going rate for a fully furnished 2 bedroom
apartment in the best blocks beach road is only 10,000 per month!!

Add the 2500 per month levy to the 4.5m purchase price as well!!

What about parking bays ?

Never mind Amalfi... when are they going to start building on the open pit next door to Newport Deli?

Mouille Point: How You Know The Seller Has No Clue

Folks sometimes an advertisement comes along which just perfectly illustrates that there are sellers out there that have no clue what the hell they are doing. Let's take a look at this gem:

STUNNING SEA FRONT APARTMENT IN MOUILLE POINT. 3 BEDS, 2 BATHS. FITTED KITCHEN WITH ALL APPLIANCES. LOCK-UP GARAGE AND SECURE PARKING BAY. PRICE R5,000,000 OR RENTAL R15,000 PER MONTH.

So let's analyse this ad. If you were to take out a 100% bond on this apartment you would be paying R62 176/month, which means that the difference between the rental (R15 000/month) and the bond payments is R47 176/month, over three time the rental itself! The owner is either selling it for way too much, or the rent is way too low.

Let's take a look at the (awful) payment and yield graph:

I'm not going to even comment, it pretty much speaks for itself.