I was recently approached by a client about whether or not I thought he should sell his rental property. Let’s take a look at the facts:
Bought in 2001: R210k (a further ±R70k spent on renovations).
Current value: ±R1.58m (he hopes)
Current rental: R6000 pm (it’s a 27 m2 1 roomed apartment in Stellenbosch)
Levies + rates: ±R1300pm
Net rental: R4700pm which equates to a yield of under 4% (3.6% before any tax has been paid on the rental). Continue reading There’s something insane about buying a R1.6m property that you can rent for less than R6000pm