Calculation:
Purchase with Bond (90%):
R270 000.00 Bond at 7% |
=R 1 921.00 p.m. |
Monthly Levy |
=R 2 270.70 p.m. |
Rental Management fee (if applicable) |
=R 690.00 p.m. |
Total |
R 4 881.70 p.m. |
R 6 000.00 rental income – R 4 881.70 expenses = R 1 118.30 Cashflow positive.
Purchase with Cash:
Monthly Levy |
=R 2 270.70 p.m. |
Rental Management fee (if applicable) |
=R 690.00 p.m. |
Total |
R 2 960.70 p.m |
R 6 000.00 rental income – R 2 960.70 expenses = R 3 039.30 Cashflow positive.
Gross Yield: 27% at R 6 000.00 rental income and R 270 000.00 cash offer.