First up. Woodbridge Island Milnerton. a 3 bedroomed townhouse rents for R4800 and sells for R1 570 000.
| Down Payment | Monthly Cash Flow | ROI |
|---|---|---|
| 100000 | -10373 | -124 |
| 300000 | -8309 | -33 |
| 500000 | -6244 | -15 |
| 700000 | -4180 | -7 |
| 900000 | -2116 | -3 |
| 1100000 | -51 | 0 |
| 1300000 | 2013 | 2 |
| 1500000 | 4077 | 3 |
3% return! You'll be rich!
Next up 3 'investment opportunities' on the Atlantic seaboard. Here's an apartment that rents for R4500 (max) and is on the market for R850 000. What's the return like?
| Down Payment | Monthly Cash Flow | ROI |
|---|---|---|
| 100000 | -3241 | -39 |
| 200000 | -2209 | -13 |
| 300000 | -1177 | -5 |
| 400000 | -145 | 0 |
| 500000 | 887 | 2 |
| 600000 | 1920 | 4 |
| 700000 | 2952 | 5 |
| 800000 | 3984 | 6 |
6%? Might as well put it in a fixed deposit and avoid the hassle of running after tenants.
Another apartment this time renting for R4000 a month till the end of January and on the market for R1 100 000. What kind of return can you expect?
| Down Payment | Monthly Cash Flow | ROI |
|---|---|---|
| 100000 | -6322 | -76 |
| 300000 | -4258 | -17 |
| 500000 | -2193 | -5 |
| 700000 | -129 | 0 |
| 900000 | 1936 | 3 |
| 1100000 | 4000 | 4 |
Where do I sign up?!? And finally an apartment described as perfect for the world cup that is currently rents for R3200 but you can buy it for R625 000.
| Down Payment | Monthly Cash Flow | ROI |
|---|---|---|
| 100000 | -2219 | -27 |
| 200000 | -1187 | -7 |
| 300000 | -155 | -1 |
| 400000 | 878 | 3 |
| 500000 | 1910 | 5 |
| 600000 | 2942 | 6 |
Again at 6% probably our best bet, but with interest rates on the way up putting you R625 000 in a high yield fixed deposit ain't the stupidest move either.
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