Investment Properties That Aren't

Here's another property touting itself as an investment:

Investment Property(Private) (R520,000 )
Two bedroom,first floor flat with parking bay,in newly build block,in Durbanvill. Have people renting @ R2 400.00 p/m

Let's run the numbers, and remember these numbers do not take into account maintenance, rates, insurance or vacancy:

Down Payment	Monthly Cash Flow	ROI
100000	-1793	-22
200000	-795	-5
300000	204	1
400000	1202	4
500000	2200	5

So with a R100 000 downpayment your investment will cost you R21 500 a year. To get less income than what you'd earn in a low yield fixed deposit (R500 000 will get you 6%+ interest) you'd need to pay almost full price.