What to know
- Calculate gross yield: annual rent divided by purchase price.
- Then calculate expected net cash flow after realistic operating costs.
- Allow for vacancies and non-routine maintenance rather than assuming 12 perfect months.
- Stress-test the investment at a higher interest rate or lower rental.
Important Information
The information in Fabulous Homes Insights is provided for general property education and information. Property, tax, finance, sectional-title, rental, municipal and compliance matters can differ according to individual circumstances, contractual terms, scheme rules, municipal requirements and changes in law. Where necessary, readers should obtain advice from an appropriate attorney, conveyancer, tax practitioner, financial professional, property practitioner, engineer, inspector or other suitably qualified professional.
