Calculation:
Purchase with Bond (90%):
R155 000.00 Bond at 7% |
=R 1082.00 p.m. |
Monthly Levy |
=R 1173.00 p.m. |
Rental Management fee (if applicable) |
=R 379.50 p.m. |
Total |
R 2 634.50 p.m. |
R 3 300.00 rental income – R 2 634.50 expenses = R 665.50 Cashflow positive.
Purchase with Cash:
Monthly Levy |
=R 1173.00 p.m. |
Rental Management fee (if applicable) |
=R 379.50 p.m. |
Total |
R 1 552.50 p.m. |
R 3 300.00 rental income – R 1 552.50 expenses = R 1 747.50 Cashflow positive.
Gross Yield: 25% at R 3 300.00 rental income and R 155 000.00 cash offer.