UNITED KINGDOM seaboard . I mentioned this comparable to a South African friend of mine and they replied “ surely you cannot compare apples to apples because it is not possible to buy a decent one bed in the UK for the equivalent of a one bed here at R2,500,000 ”.
Let ’ s compare the two investments :
South African investment On the Atlantic seaboard you can buy a 1 bedroom apartment for R3,047,500 . With a 70 % bond , transfer duty and bond costs you are looking at a cash total of R1,361,625 .
If we look at the bond repayment on the Sea Point flat , which based on today ’ s rates would be approximately R18,000 , and if you are achieving the same rental as the UK apartment , R17,000 , then you are in a cash negative .
SA Real Estate Investor Magazine APRIL / MAY 2023 128