Calculation:
Purchase with Bond (90%):
R140 000.00 Bond at 7% |
=R 977.00 p.m. |
Monthly Levy |
=R 1 346.00 p.m. |
Rental Management fee (if applicable) |
=R 414.00 p.m. |
Total |
R 2 737.00 p.m. |
R 3 600.00 rental income – R 2 737.00 expenses = R 763.00 Cashflow positive.
Purchase with Cash:
Monthly Levy |
=R 1 346.00 p.m. |
Rental Management fee (if applicable) |
=R 414.00 p.m. |
Total |
R 1 760.00 p.m. |
R 3 600.00 rental income – R 1 760.00 expenses = R 1 840.00 Cashflow positive.
Gross Yield: 30% at R 3 600.00 rental income and R 140 000.00 cash offer.