This 55m^2 2 bedroomed flat in Plumstead is on sale for R650 000 and is currently tenanted till the end of the year for R3600 a month. The difference between the rent and the bond payments if you took out a 100% bond is only 1.33 times the rent which is one of the better numbers we've seen and I would expect that for a property on the low end. Here are the payments and return on investments in graphical and tabular form:| Down Payment | Monthly Payment | Cash Flow | Annual Income | ROI | Cap. Appr. Required |
|---|---|---|---|---|---|
| R0 | R8319.99 | R-4719.99 | R-56639.83 | 8.71% | |
| R65000 | R7487.99 | R-3887.99 | R-46655.84 | -71.78% | 7.18% |
| R130000 | R6655.99 | R-3055.99 | R-36671.86 | -28.21% | 5.64% |
| R195000 | R5823.99 | R-2223.99 | R-26687.88 | -13.69% | 4.11% |
| R260000 | R4991.99 | R-1391.99 | R-16703.90 | -6.42% | 2.57% |
| R325000 | R4159.99 | R-559.99 | R-6719.91 | -2.07% | 1.03% |
| R390000 | R3327.99 | R272.01 | R3264.07 | 0.84% | -0.50% |
| R455000 | R2496.00 | R1104.00 | R13248.05 | 2.91% | -2.04% |
| R520000 | R1664.00 | R1936.00 | R23232.03 | 4.47% | -3.57% |
| R585000 | R832.00 | R2768.00 | R33216.02 | 5.68% | -5.11% |
| R650000 | R0.00 | R3600.00 | R43200.00 | 6.65% | -6.65% |
So a sub 7% return on investment before maintenance, rates, levies and vacancy are taken into account. There's a 60% downpayment required to break even on cashflow and even with a 50% dowpayment a 1% increase in capital appreciation is required to not lose any money.
