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The house will be used for rental, with a rental income of R20 000 per annum, and expenses of R14000 per annum, assume zero escalation.

The house will be used for rental, with a rental income of R20 000 per annum, and expenses of R14000 per annum, assume zero escalation.

The house will be kept for 5 years, there after disposed for the value of R350000, with a cost of sales of R50000.

Use a 4 stage life cycle model: Develop, Build, Operate and Dispose.

In your view, is this a good investment decision?

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