Right so buying the place in cash gives you a fantastic 4.41% ROI, only about 7% below the official inflation figures. You break even on cash flow with a massive 72.87% downpayment of over R430 000.
13 August 2008
Rent Vs Buy: Strand - Invest R430 000 And Make Nothing
I thought small bachelor flats were the place to go for high yields? This bachelor flat in the strand is on the market for R599 000, while it currently commands a monthly rental of R2 200 a month. That means that with a 100% bond the difference between the monthly bond payment of R8 109/month and the rent is a whopping R5 909, nearly 2.7 times the size of the rent itself! Here's the (dismal) payment and yield graph:
Right so buying the place in cash gives you a fantastic 4.41% ROI, only about 7% below the official inflation figures. You break even on cash flow with a massive 72.87% downpayment of over R430 000.
Right so buying the place in cash gives you a fantastic 4.41% ROI, only about 7% below the official inflation figures. You break even on cash flow with a massive 72.87% downpayment of over R430 000.
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