Is Rental property a good investment in South Africa 🇿🇦
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- čas přidán 2. 07. 2024
- Is Rental property still a good investment in South Africa?
Reach out to Marno: marno.vangreuning@pamgolding.com
@pamgolding
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DISCLAIMER: I`m not a financial advisor and hence the content of these videos are for educational and entertainment purposes only. Investing is a risk related practice and should be approached carefully.
I've been binging Your content bro you give so much free value keep posting 💪🏿
Thanks Brother, Really appreciate your comment 🙏🏻 🍻
Great discussion. Very much agree with Marno on opportunities in SA. I've been living outside of SA for many years, but still invest in properties in SA. The opportunities in SA are substantially more than in developed economies. Even now. Negativity has overtaken many people's minds to the point where opportunities are completely invisible. Suggestion for a future topic (because I was an idiot when I started investing) is how to get a bunch of properties 'transferred' to a trust/company structure in the least expensive way.
Thank you very much Quintin. I am glad you agree. There will always be opportunities in SA. Property here is overall is still quite cheap compared to other countries so there is so much room for growth. Thank you for the suggestion, I will definitely look into this and try to share some insights about this topic.
Hello, currently about to purchase a property in SA. I have an LLC set up. Can we get in touch on how to transfer it into and entity/trust ?
Quality comment! 🇿🇦🇿🇦🇿🇦
Good guys, Video... ;) Thank you
🤣🤣🙌🏻🙌🏻
Greetings gents. I didn’t think I was going to watch the whole video, but I did. The questions posed were crucial and relevant and the responses to them were excellent. Keep up the great work! 👌🏾
Thank you for your comment. Really appreciate the feedback. This again just helps me to focus on content that is relevant.
Great video. So informative, full of personal examples not mentioned in books. Thank you.
Thank you. I'm glad the video was informative . Thanks for watching
Nice informative interview. Nice working with you my man. Big up
Thanks for the feedback. Appreciate your comment 🙏🏻
Wow. Your guest is so relatable.
Thank you for this video. Very informative.
Thanks my friend. Will start making more of these soon. Thanks for watching
Hi man im a 17y old who is interested in Real-estate and i would like to say your content has made me realize things i didn't know. Your content has added value to my knowledge about the south african property market. THANK YOU, you guys are truly inspiring, BLESS.
Thanks for your comment. Really appreciate the feedback. So glad to hear that it can help you in some way. Thanks again 💪🏻
Great and informative interview💯
Thanks for the feedback. Appreciate your support 🙏🏻
Wow !!! So much value
Thanks so much for the positive feedback 🙏🏻🙏🏻
Very insightful. Thank you very much for taking time to educate the likes of me.
Thanks my friend. Glad you liked the video 🚀
Marno is such a great lad. Always carried a smile when I’d see him around varsity. Super great to see him doing well.
Thanks for the interview Louis🏆🏆
Thank you for your positive comment. I love to see this on the channel. It certainly is a small world. I agree Marno is always smiling and willing to help.
Thanks for watching the video.
Hi Louis, this very exciting. I would like to chat with you. Thanks
Property prices falling in SA - they down app 20% as we speak - Rents haven't increased much in the last 5 years - interest rates the last 6 months have chocked everyone - rental properties around 15%-20% are standing empty - no one is touching block of flats - investors are staying away from townhouses due to levies and special levies..........
Hi there, thanks for sharing. I'm not sure where you get your information from, but
According to the TPN Rental Monitor Residential Sector Q2 2022 Report, residential tenants in good standing have recovered to 82.2%, which is at pre-pandemic levels. The upper to mid-level brackets recorded their best good standing ever. Also, according to the PayProp Rental Index Q4 2022 Report, growth has rebounded impressively
over the last five quarters since Q3 2021, when we recorded Year-on-Year growth of just 0.2%. Currently, rental escalations are sitting at 3.4%. It has now recovered to pre-pandemic levels.
Property prices are definitely not down 20% . Growth has slowed, but it's definitely not down . Also, the interest changes will always affect buyers but will never stop them.
@@louisreynhardt is building and selling very profitable right now ?
@Tommy-nt6wv, it can be profitable during any time of the economic cycle when done correctly.
Unfortunately my expertise is not in developments. If you can keep your input cost low, you should be able to make money in the right locations.
@@louisreynhardt you do remodeling?
@Tommy-nt6wv i dont do flips. I only do rehabilitations. So I fix places that are in bad condition , rent them out refinance them and repeat.
Hi Louis. Can you maybe have a topic relating to taxes (SARS) that hits the property owners who rent out their properties? I have moved to Europe a few months ago and I’m currently renting out my property in Bloemfontien near the University of Free State. I’m have been trying to communicate with SARS and I’m not getting clear answers. I’m not sure if SARS likes it that I’m moving money between two continents and “He” is not gaining anything.
Now I’m wondering if I should sell my property and start investing in property in Europe. Although property in some European countries is 5-10x more expensive.
Hi Tebogo, Thank you for watching and for your comment. I won't recommend talking to SARS but rather working with a professional to communicate with SARS and do your tax returns. It all depends on your property structure. If you want to, pop me an email at Louisreynhardt@gmail.com if you would like to book a one on one session where I can help you and assist you a bit better. Dont make drastic decisions before you are educated about the matter. There is definitely methods to transfer money between countries legally and paying little or no taxes.
Looking forward to your email.
Property investment has its ups and downs. I own a couple of properties and in 2020 my portfolio broke even in regards with expenses and rental income. Post 2020 rent went down, costs and interest rates went up and now I have huge shortfalls. Property is not that easy.
Thanks for sharing Heidi. I totally agree that property is heabily influenced by the economic cycles. It's important to make sure you buy quality deals and have a healthy reserve to get through these economic downs.
@louisreynhardt i have people telling me banks are not allowing refinancing as easily as previous years. Is that your exeprience? So, if a bank sells a prop at R1m with 10% interest rate and break even is at 1.1m, can you refinance before it reaches R1.4m in property value? Can one really refinance 6months after buying a property, if it hasnt reached a prop value higher than purchase value?
That's why it's very important to buy undervalued properties. Then, the banks will gladly refinance because they are protected. I have been declined before, but then I just try again later on and successfully get access to the funds. It depends on a few factors like interest rates, type of property, amount of equity, and your affordability off course.
@@louisreynhardt ok i göt you.thanks👍
Please advise, if you already have properties in person account. Can I leave them under my name and buy new ones under my company since I can’t buy and pay for transfer costs
I dont own any properties in my personal name and never have. You can pop me an email at louisreynhardt@gmail.com if you want to chat or learn a bit more.
No one has done a video in SA on this:
You have 6 or 8 properties now what?
What's the next step?
I would suggest not stopping at 6 to 8. The idea would be to acquire as much good deals as possible. If this is not part of your plan, you can focus on paying off your properties or re allocate some of your capital. It also depends on your age and risk appetite.
@Louis Reynhardt thanks. I'm definitely buying more but it could be a good video to do? Let me know if you do it.
Hi Louis i tried emailing Marno but the email address comes back with address not found
Hi there,
That's strange. Sorry for the inconvenience. Maybe you can give him a call. Are you in Bloemfontein?
@@louisreynhardt no I am in cape town
Luis when u subscribe how do we communicate out of this platform?
Hi Etienne, You can pop me an email at louisreynhardt@gmail.com 💪🏻
Are townhouse more profitable than Appartments?
They tend to be more profitable, yes. But it all depends on the deal. Go ahead and watch my latest video that should help you out 🙏🏻
@@louisreynhardtthanks for your response brother
Rental Asset class is a miserable investment if you do not come from money or do not have support if it goes belly up.. IF tenants default, or you lose your primary job, and you were doing it the right way by submitting your tax returns, and taking assessed losses 240x throughout your bond term, you will accept that its a crappy investment. Ppl should nt listen to ppl who have teams or families that go into it together. If you do not have a network, or are middle class, starting from scratch, do not do it. Its slow and miserable dealing with Body corporates and tenants, even hiring agents come with its own set of issues. Again, if you have money to build up a good base fast, momentum is a real thing. 20 Years is a long period, ppl start becoming sick at 55, if you want a lifestyle change, invest elsewhere. your network is everything. Apartments and townhouses in Western Cape is a horrible idea. Like his explanation, if you dont have cash flows or will take too long to get there, its probably not worth it.
Thanks for sharing. But I think you might be generalizing the asset class. I would agree and say not all properties are a good investment but it continues to form part of many peoples bet worth. Property done correctly is and will always be a powerful tool. You just need to understand the basics. And unfortunately majority people investing in property dont understand the basics and results in poor and low returns. Thanks for commenting and sharing your thoughts 💪🏻
Is South Africa a better place to invest in real estate than Australia?
I dont have any comment regarding Australia. I do know that South African properties are cheap compared to other countries. I live in South Africa so This is where I choose to invest in Brick and Mortar properties.
Thank u for info Louis
Will ask mo thru email please.
Thanks for watching my friend 💪🏻💪🏻