How the figures are worked out
All-in cost
The price plus transfer duty (SARS table), conveyancing and deeds office costs, bond registration when there is a bond, and any renovation before the first tenant moves in.
Net operating income
Rent for the year after empty months and arrears, less the agent fee, levy, rates, insurance and a maintenance reserve. Rates are estimated from the price when left blank.
Cash flow and return
Net income less twelve bond repayments. The 5-year return is the yearly rate earned on your own cash if the property is sold at the end of year 5 at the price growth you enter, after paying off the bond.
Questions
How is transfer duty worked out?
With the SARS transfer duty table for 2026/27. Conveyancing and bond registration are estimates from the conveyancers' guideline fees plus VAT and deeds office costs; ask your conveyancer for a quote.
What is net yield on the all-in cost?
A year's rent after empty months, less the agent fee, levy, rates, insurance and a maintenance reserve, divided by everything it cost to buy: the price, transfer duty, conveyancing, bond registration and any renovation.
What is debt cover (DSCR)?
Net income divided by the bond repayments. Below 1 the rent does not cover the bond; banks like 1.2 or more.
What is the walk-away price?
The highest price at which the property still earns your target net yield. Use it as the ceiling when you negotiate.
Is a bond better than cash?
Only when the property earns more than the bond costs. If the bond rate is higher than the net yield, every rand borrowed loses money until the rent catches up.