This 3 bed 2 bath, 185 sq.m cluster was bought in an excellent condition. The capital investment (purchase price, and all acquisition and renovation costs) was R734,930, 33% less than its market value of R1.1m. This means that YDL’s investor made R365,070 when the property was purchased. The investor obtained a 90% mortgage bond, and the property was tenanted for R9,500 pm. The property was thus cash flow positive from Day 1! The initial net yield was 13%.
This well-located buy-to-let property had an initial net yield of 13%.
It was therefore cash-flow positive from Day 1!
Use the map to get an idea of the area. For security purposes we have not identified the actual property on the map.
|Total capital investment||R734 930|
|Market value||R1 100 000
|Gross discount||R365 070|
|Gross monthly rental||R9 500|
|Monthly operating expenses||R1 660|
|Net monthly rental||R7 840|
|Initial net yield||13%|