BC01, the above examples given are very simplistic and unfortunately does not give a clear picture (as one assumed you occupy the property for 5 years, then rent it out for 3 years), while both do not take into account inflationary rental and other cost escalation. I did a quick calculation, assuming you had ZAR1m and you wanted to purchase a property plus invest any surplus. I used the following assumptions: Transaction cost in Y1 = ZAR30k; Y20 = ZAR150k Rental = ZAR8k per month, increasing by 8% YoY and 92% occupancy Bond of 20 years @ 9.5% fixed interest Levies ZAR1.5k per month, increasing 6% YoY Management fee = 10% of rental Tax rate @ 40% Interest on excess funds @ 6% Excess cash = Fund not spent on property plus/minus surplus/deficit of bond and running costs Property value increases 6% YoY Model run out to 20 years No interest tax exemption considered. Conclusion: After 20 years, at 100% finance, you'd pay ZAR1.5m in tax and have assets worth ZAR5.4m (property plus cash) After 20 years, at 0% finance, you'd pay ZAR1.2m in tax and have assets worth ZAR5.0m (property plus cash) Breakeven of the 2 scenarios is at return on excess funds of 9.5%. Therefore if you confident you can achieve more than 9.5%, finance property, if not, then no finance. Please note that this is a very quick and high level calc. that may be incorrect.