Here's a 3 bed house in Rondebosch East on sale for R1 390 000 with a current rental of R6 000 a month. With a 100% bond you'll only be losing just under R13 000 a month. The difference between the bond and the rent is over two times the rental income itself!
So buying the property for cash will get you a 5.18% return on investment. A 68% downpayment (nearly R950 000!) is needed to just break even on cash flow. Even with a 50% downpayment a 2.94% appreciation in capital is required to not lose any money at all.
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