Showing posts with label maths. Show all posts
Showing posts with label maths. Show all posts

Saturday, July 2, 2016

Renting and/or buying

In simple maths.

I have Masilo and Simon.They both earn equal salary and holds one position and they have been given 20 years only at their work.

Masilo took out a 2 bedroom house on a monthly rent of R 3 500,00.We assume that no increase during this period.It goes like this R 3 500,00 x 12 months x 20 years equals to R 840 000,00.Then the term of employment reach an end,Masilo can look for another job and he doesn't have shelter.
R 840 000,00 is gone.

Simon took out a bond where he pays R 4 500,00 pm for a 2 bedroom house.We assume that no increase during this period.It goes like this R 4 500,00 x 12 months x 20 years equals to R 1 080 000,00.Then the term of employment reach an end,Simon can look for another job and he has a house to keep.

Now we say R 1 080 000,00 - R 840 000,00 equals R 240 000,00,with a different of R 240 000,00 Simon has a house to keep.He doesn't worry about shelter and he has something to look at for his effort of 20 years as for Masilo?

If you are renting for longer than 2 years you must really think again.The space on the picture is for you to fill.

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