We have been looking at rentals for penthouses and have found that the returns on high end residential property are terrible. The first thing we noticed was that a penthouse that was for sale for R15m was available, fully furnished, for rent at R55 000 pm. That’s a gross return of only 4.4% before levies etc. It had originally been on the market for R22m! Then there was another one for sale at R12m and available for rental at R45 000 pr month, beautifully furnished. Gross return 4.5%. Now, it is possible that the owners bought at a significantly lower…
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