10 January 2007

Investment Properties That Aren't: Gardens

Another "investment opportunity" in Gardens. A 2 bedroomed flat on sale for R899 000 and tenated for R4000 a month. Here's your ROI:










Down PaymentMonthly Cash FlowROI
R100000R-5373-64%
R200000R-4201-25%
R300000R-3029-12%
R400000R-1858-6%
R500000R-686-2%
R600000R4851%
R700000R16573%
R800000R28284%
R900000R40005%


1% annual return on investment with a 66% (R600 000) downpayment? And that's before levies, taxes and maintenance. 5% rental return if you buy the place outright. With that kind of return you'd be crazy not to buy!

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