Property Investment Calculator South Africa 2026
Analyze property investment returns including capital growth
Property returns are estimates based on historical averages. Past performance does not guarantee future returns.
Frequently Asked Questions
What is average property growth in South Africa?
Historically, SA property has grown 5-8% per year, though this varies widely by area. Some areas like the Western Cape have seen 10%+ growth.
Should I invest in property or shares?
Both have pros and cons. Property offers leverage and rental income but requires maintenance. Shares are liquid and diversified. Many investors do both.
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How the property investment calculator works
A rental property returns two things: monthly cash flow and capital growth. Cash flow is rent minus costs minus the bond instalment; growth is what the property is worth when you sell, less what you paid.
A R1 800 000 property with a R180 000 deposit leaves a R1 620 000 bond at 11,25% over 20 years, which costs R16 997,95 a month. Against rent of R12 000 and costs of R2 500, the monthly cash flow is R-7 497,95 — negative, before a single month of vacancy.
At 6% growth a year the property is worth R2 408 806 after five years, a gain of R608 806 on a R180 000 deposit. The total return is that gain plus five years of cash flow, which is why investors accept a negative monthly figure on a growth asset — and why the same property is a poor investment in an area that does not grow.
What changes the answer in South Africa
Rental income is taxable, but bond interest, rates, levies, insurance, maintenance and agent commission are deductible, and the first R1,5 million of capital gain on a primary residence is excluded (a rental property gets no such exclusion, though the annual R40 000 exclusion applies). Transfer duty and conveyancing are paid on purchase and cannot be financed in the bond. Section 13sex allows a 5% annual allowance on new residential units, which changes the arithmetic for new builds.
Common questions about the property investment calculator
Is a negatively geared property worth it?
Only for the growth. The cash flow here is R-7 497,95 a month, so the investment depends on R608 806 of growth over five years actually happening.
What costs do landlords forget?
Vacancy, agent commission of 8–12%, maintenance at about 1% of value a year, and the rates and levies that continue whether the unit is let or not.
How is the return measured properly?
As total return on the deposit: (capital gain + net rental income) ÷ cash invested. Yield alone hides the growth, and growth alone hides the cash cost of holding.