Rent Vs Buy: Milnerton - Royal Ascot

Purchase price: R1 180 000. 100% bond: R15 975/month
Rental: R5 500/month before rates, maintenance and vacancy.

65.57% (R773 760) deposit required to break even on cash flow. 5.59% ROI when paying in cash. 2.53% capital appreciation required with 50% deposit.

Rent Vs Buy: Royal Ascot

Here's a 2 bed/2 bath apartment for sale in Royal Ascot(Milnerton) on sale for R1 195 000 with a current rental of R5 500/month fixed for the next year. With a 100% bond the monthly payments are R16 178/month leaving you with a shortfall of over R10 000/month. Here's the payment and yield graph.



Buying in cash gets a return on investment of 5.52%, less than half of inflation. A 66.01% (over R780 000) deposit is needed to be cash flow positive with 2.6% capital appreciation required to not lose any money even with a 50% dowpayment.