Real Estate Investor Magazine South Africa April 2016 | Page 31

Use Bank Finance & Tenant’s Rental to grow YOUR investments Maitland Cape Town 1 Bedroom Apartment - First Floor R 469,900 Example: Purchase Price R469,900 Less 20% Deposit R93,980 = Bond Amount R375,920 Rental Income 2016 Bond Instalments Rental Agent Commission (Optional) Levy Rates Net Income (monthly) Monthly Figures R 4,700 R -3369 R -589 R -551 R -25 R 166 (Interest Rate 10,25%) (12,54% Incl Vat) Net Return by 2017 Net Income R 166 x 12 months = R1,990 pa. Annual Capital Growth (5%) R 23,495 Total R 25,485 = 27% Return Assumptions & Notes: Rental Agent commission is Optional & if self-managed can increase Rate of Return Annual Capital Growth Rate on Property Value of 5% (sourced through reports by Lightstoneproperty.co.za & cmainfo.co.za) The Higher the bond finance the Higher the Returns. CHAD WILLIAMS / CLINTON FORLEE 071 639 3512 / 072 840 6797 [email protected] www.mountainviewvillas.co.za