Rentvesting EngineCape Town primary residence vs. Cape Town rent + Johannesburg investment property.

Your situation

Monthly salary (gross)R 60 000

Cape Town monthly rentR 15 000

CPT primary residence priceR 2 500 000

JHB investment property priceR 1 500 000

Deposit10%

Financing & yields

Bond interest rate10,25%

Default = May 2026 prime (10.25%)

Loan term20 years

JHB rental yield13,7%

Property appreciation5%

Opportunity-cost return (equities)10%

Time horizon20 years

Verdict

—

Opportunity cost (rentvest – own)

—

Owning — final net worth

—

Rentvest — final net worth

—

Net worth over time

Horizon: 20.0 yrs

Monthly outflow over time

How much cash leaves your account each month under each strategy, escalated annually.

How the maths works

Both strategies amortise their bond using the prime rate you set, monthly compounded.
Property values appreciate at your assumed rate; rates, levies and maintenance scale with value.
The JHB property earns rental income at the chosen yield, escalating annually.
The cheaper-cash-flow strategy invests its surplus into an opportunity portfolio at your equity-return assumption — apples to apples.
Final net worth = property equity + opportunity portfolio at horizon.

Excluded for clarity: Capital Gains Tax on exit, transfer duty differences, void months on the JHB property, and any tenant-default risk. Stress-test these yourself before you sign.