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Investment Comparison Tool

Two comparisons investors actually make: which property type performs best, and which rental strategy earns more for the same property.

Rental strategy to model:

Free-standing house

Gross annual incomeR 356 400
Annual expensesR 130 560
Occupancy assumption55.0%
Net annual incomeR 225 840
ROI (net / price)8.7%
Management effortHigh
Best ROI

Apartment

Gross annual incomeR 280 800
Annual expensesR 80 640
Occupancy assumption65.0%
Net annual incomeR 200 160
ROI (net / price)14.3%
Management effortModerate

Townhouse

Gross annual incomeR 287 100
Annual expensesR 97 920
Occupancy assumption55.0%
Net annual incomeR 189 180
ROI (net / price)10.0%
Management effortModerate

Important investment notice

Short-stay accommodation is not permitted on every property.

Before assuming short-stay (Airbnb / nightly) income when comparing a purchase, confirm that the property is legally and contractually allowed to operate that way. The rules that most commonly restrict short-stay letting in South Africa are:

  • Sectional title schemes may prohibit short-term letting in the conduct rules.
  • Body Corporates can restrict or ban Airbnb-style rentals by special resolution.
  • Homeowners' Associations in estates often disallow daily or nightly bookings.
  • Estate security policies frequently prohibit frequent guest turnover.
  • Some developments require minimum lease periods (30, 90 or 180 days).
  • Municipal by-laws and zoning may require a business licence for guest accommodation.

Verify the conduct rules, HOA constitution, title deed conditions and municipal zoning before purchasing a property with short-stay income assumed in the numbers.

Want an unbiased second opinion?

Our advisors help you pressure-test the numbers, verify what is legally allowed on a specific property, benchmark against real market data and choose between shortlisted properties.

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