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Where are you going to get 8% PA?I have a property worth roughly R1.6m that I plan to sell when we emigrate. It's a 3 bedroom apartment in Cape Town that would probably get me R10k/month rent. After estate agent fees (R750), levies (R2k) and rates (R1k), I'd take home roughly R6k AND would have to worry about the **** that tenants do.
If I sell it and invest +-R1.5m offshore, I could see returns of 8% PA pretty easily (roughly R10k/month) AND I wouldn't worry about the devaluing rand.
Obviously it's not quite as clear cut as that (I'm looking at you, Mr Tax Man) but it gives you an idea of what to think about.
The markets did well, but we will get another bear market and you have to take that into your calculations if you are a long term investor.
I've got a 1 bedroom apartment which I've recently renovated. I'm not sure whether to rent it out or sell. Would be keen to hear your thoughts based on the current property and economic climate.