Why I Avoid New Development Properties in South Africa
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- čas přidán 22. 07. 2024
- Why I Avoid New Development Properties in South Africa
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This is just an example. But financially these properties dont make sense to me, what do you think ? Open to opinions
Hi, what is your email address? Would like to have your sheet please
Igrow is a very bad example of what is possible with sec13sex in my opinion.
I invest with this strategy into properties with a 12+% yield.
Let me give you a quick example. I paid R5500 for registration and got 100% mortgage over 20 years in a R470k bachelor unit. I rent that out for R4700 plus fees of R550 for a total of R5250, at current interest rates I cover about R600 per month. When interest rates stabilize, I will be cash flow positive again. For that cost of R5500 down and R600 p/m, my return is R470k in today's value in 20 years, and SARS is paying me 55% back over these 20 years in terms of my future profit. I am very little money down, in a good ROI investment that will form part of my retirement one day. I will pull from the rental without depleting the principle amount.
We need a state bank to provide lower interest rates as compared to the major banks....
Western Gruppe stole our R10000 deposit. We ended up not buying their faulty house. It was a lie. House was rotting and fell apart. We still didnt get our deposit back!
Never buy new houses built by shady developers. They pay NHBRC to approve their shitty houses. BANKS never worry about quality. You must just pay!
"What's up Louis it's guys here"😂😂😂
Yeaahh buddy 🤣🤣💪🏻
🤣 🤣 *Legend
Lol
It’s a Graham Stephan line, he’s been doing it for years. Don’t like it when he does it and I don’t like it when other people copy him, but I’m glad to see someone here likes it.
@TinyFord1 its just to catch attention. It's a content strategy.
The idea that new developments are well built is another myth! I lived in a brand new apartment built by Igrow and it was awful. Tiles in every single room started cracking out of nowhere, major plumbing issues to a point where the kitchen was completely flooded multiple times. After complaining they only reached out after I served my notice to leave. 0/10 experience.
Thanks for sharing.
Sorry to hear about your bad experience but I agree that many developers take shortcuts to complete projects. I do believe there are good developers out there but it seems to be very rare.
Thanks, I will use the freelancers from my hood. They did my mom's kitchen and bathroom 5 years ago, never had a problem with poor workmanship and I was against them. Old school guys are the best to use.
There hasn't been a well built townhouse or flat built in Gauteng since the late 90's. Every single place I've lived in that was built after that has either had a leaky roof, damp problems, bad plaster that falls off the wall when you bump it or something ridiculous like a patio angled in the wrong direction that causes rainwater to come into the house. These developers are not builders, they are scam artists who cut every possible corner to make a buck. Not to mention the fact that the average modern place is so small that you can't even fit a normal headboard into the master bedroom! If you want quality stick to the older stuff, if you want headaches buy an overpriced shoebox made out of chewing gum and hope from a developer....
Funny you say that, a friend of mine who moved to Joburg had his ceiling cave in. The complex is fairly new and requires biometric access to enter.
This is so bad, cant believe that's the stuff people have to deal with
This is terrible. I can't imagine how it must feel to pay premium money and have such bad experience. Thanks for sharing . Appreciate your input. At the end of the day, I just love older properties, and it makes much more financial sense too.
I'm happy to say I'm not one of those. I build houses that I would buy myself.
You're absolutely right they cut all corners and then sell it at a insanely high price, as soon as your 20 years of paying a bond are up, they cost of repair starts but with buildings done till the 90s the conditions are still good, they don't dig into the ground when making a foundation they use steel and cement which is way cheaper to do and then sell it to you at a ridiculous price
The wear and tear on these properties is crazy. I lived in a 1-bed apartment less than a month after completion of construction. I kid you not, two months later, the paint was cracking on the ceiling, inside and outside the hallways and by the balcony. If you stained the wall, you couldn't wipe it off without the paint coming off, even when wiping lightly. Then the toilet seat came loose, the sliding door got squeaky, the drains got blocked easily affecting multiple apartments, and to top it all, the insane water bill of R1 800 (Includingng hot water) which is crazy for a 1 bedroom apartment, single occupancy without a washing machine or dishwasher. There were new tenants every couple of months. So, even from a tenant's perspective, these new developments can be a huge miss.
Thanks for sharing your experience. This is quite sad. That is why I feel that these properties will depreciate first before going up in value because of the maintenance issues. Appreciate your comment 🙏🏻
Great comment. Their quality is substandard because they use cheap materials to squeeze out as much profit as possible.
Which area was this in?
@@Asdasty Pretoria East
@@BabeBun17 I lived in Pretoria in 1996 the apartment was fine and clean with no trouble and no squatters on the streets and vendors, now I see on CZcams that there is a big mess in there... I am in Melbourne Australia now!
So glad someone is shedding light on this! Buying off plan was the worst decision my husband and I made. The houses were not even built according to building regulations, they cut corners absolutely everywhere, it was a nightmare. Thank God our property never registered, and we were able to get out. We purchased at The Woods in Kyalami, the developer was Craft Homes, please do not buy from this developer! They have no idea what they are doing, absolute scoundrels!
Thank you for sharing your experience. Im sorry to hear about all the issues. It's really important to do thorough research before investing in property. I hope this channel helps
Buying off plan is a NO NO.How about purchasing a plot of land and building from the ground up?
I've looked at new developments in the past and they always feel like they charge you for the future value of the property not the actual market value of the property, if you had to sell one those properties within the first 5 years of buying it, you almost guaranteed that it will sell for less than the list price you paid.
Absolutely true. Thanks for adding value to the comments. You are 100% right. People think the premium is worth it just bevause it looks good. But financially, it's a terrible idea.
I've looked at a few stats here in cape town and even with new developments, the apartments or houses are almost always way more expensive than what you paid for them. The growth is insane even for a struggling economy.
I thought I would hold out for a few years but they just keep going up year after year
Not in Cape Town. New developments are selling for a lot more than what people paid for
Indeed. It locks you in and screws you over.
Thanks Louis for pointing out this scam!
Other thing is that once the developer is done selling to you he will go and develop more properties around the same area. This creates an oversupply of these new developments and basically no capital appreciation for many years…
I wouldn't call it a scam, but theres definitely a few things you need to look out for.
Thanks for pointing that out. Its true. They develop like crazy any and everywhere they can. It also ends up reducing the projected rental incom.
Not only that, if the entire complex doesn’t sell out they make the rent lower and you end up competing with the developer for tenants
I am grateful to be fortunate enough to have got vacant land that I am building on, I am doing things properly, taking my time, not cutting any corners, the rooms are spacious enough for myself wifey and the kids, we should just go back to buying vacant land and building our own homes as this development thing is ripping everyone off, only the developers and banks win from this
Absolutely, thanks for taking the time to share. Appreciate your comment. All the best 🏆
That's the plan with my wife. Great choice brother
This makes so much sense in todays time…
How sure are you with the contractor, did you cross reference? We wanna build as well just not even sure of the Contractors, also taking our time with this decision.
New developments increase property supply, which should drop the prices, but the opposite is happening in Cape Town because they are pricing and marketing these properties for wealthy foreign investors. The prices don't makes sense for locals earning a salary in rands.
The CT property market is flooded with international money 💰
@@louisreynhardttrue and inasmuch as I'm one of them, it's not fair but same things happening in Europe , Canada, New Zealand where wealthy Chinese purchase properties which stay locked and they only use when thefe or turn into air bnb and then locals don't have enough apartments to rent and now some governments start controlling and forcing investors with two or more air bnbs to rent out one to solve housing problem and also prices went up because these wealthy Chinese paid so why would they drop the prices or make them affordable? .
Dude....the levies and rates are insane.
Its crazy 😪
try owning a game lodge in limpopo….16k per month
Thanks for this. Another important detail is that the mortgage repayment is based on a 30 year term. Most mortgages in SA are on 20 years. So you will be paying a bit more.
Absolutely, the shortfall will be even bigger 👎🏻
I used to work in the building industry and have also been a professional landlord for over a decade. My advice is to NEVER buy off-plan or in a new development. The initial expenses to fix all the shoddy building work can be staggering for the first few years.
Your best bet is to buy a place that's 5 -10 years old. By that time the worst problems will have been fixed at the previous owners expense and/or the problems will be obviously visible. This means that you can at least see what the problems are and get an estimate to fix them.
Thank you very much for adding value to the channel. Tou make some great points. I agree that buying used properties is such a good way to protect yourself from unnecessary issues. Thanks for supporting the channel. All the best.
@@louisreynhardthow about repossessed properties, from the sheriff and banks? Pros and cons please?
This is me right now, I don't know how many things I have had to fix. I'm over that place already. I don't know why nobody is buying it
Was thinking about this this week. Also the problem with new developments is the competition. If there's hundreds of units all fighting for tenants then chances are everyone will need to keep their rent down to catch the fish and that's a serious problem.
Thanks for sharing, this is a great point. Thanks for pointing this out. I feel the only one benefiting from these properties is the developers 😑
@@louisreynhardtThe developers, agents, banks (of course), and to some extent the tenants win. The owner loses. Deeply regret buying two of these type of properties before doing more in-depth research. Expensive, but important lessons. Thanks for your content though 🙏🏼
Worse yet I'm in a situation where the developers have been building in phases for over 5 years now (and running). The newer phases have "better" designs and it's now difficult to sell my apartment because all the buyers are obviously more interested in the new phases from the developer instead of old apartment
They are size of match box, they are the same as RDP only difference you pay alot more
Ridiculous 👎🏻
Apart from the poor quality and constant issues with the Body-Corp, the lifestyle just sucks. These areas may provision for luxuries like pools, function halls and even a driving range but good luck finding a corner shop or cheap food in walking distance. Everything is significantly further away than any of the older neighborhoods that came up organically and that pushed up travel time, vehicle spend and prices. Delivery apps have mitigated the travel issue but now that hyper-secure area has a revolving door of strangers going in and out.
Beyond that, they got restrictions on guests. They got limits on additions. They got problems with seemingly any pets. Parking, gardens, paint, kids playing on the street. I'm all for being neat and neighborrly, but why would anyone care about the color of my curtains?
Thank you for adding to the comments. You make some good points . I had a laugh about the curtain part 🤣 thanks for sharing 💪🏻💪🏻
I got fined for having a mop on my balcony. It’s just madness if you ask me
Wow! I was close to put an offer to purchase on an apartment at the new developement in Stellenbosch. Wanted to use it to be closer to my kids on school holidays and rent it out to students during the rest of the year. Your calculation makes me see new developments differently. Thank you Louis
It's just my opinion, but the numbers never lie. Always do the calculations on your deals to remove emotions from the decision. Thanks for sharing. All the best.
Is this an issue of “new developments” or just an issue of overpaying on any apartment?
I feel these new developments are overpriced
Wow! Just discovered the channel and hooked already. Thanks Louis 🙏🏼🥰
Welcome to the channel and thanks for the suppoet 💪🏻💪🏻
A lot of new freestanding home developments in estates are also constructured with concrete bricks (or worse, cinderblocks) rather than clay bricks. The concrete/cinderblocks tends to not breath like clay, and is prone to cracking.
Interesting, thank you for sharing and adding value to the comments 💪🏻💪🏻
Hi Louis,
I just wanted to say i like how kind you are on here and how consistent you are with engaging with your audience in a kind manner. It's admirable. Keep up the great content 😊.
Thank you for your support. I really appreciate your comment. I'm glad it can help and create a positive environment 💪🏻💪🏻
I can already tell that I am going to learn so much from this channel, dankie meneer.
Welcome my friend. Thanks for the support 🙏🏻
The new development property advantage is building equity without you putting in a cent of your own money, By the time you start paying for the property, the property's value would be up. I'd say choose the new development wisely. Negative is you will sell at a loss if the development is in phases and the developer is still selling his own stock. If you do buy just dont do it in big developments like Munyaka where the developer will still be building for the next few years and you want to sell prior to the completion of the development.
Thanks for adding this. You make some great points. I agree to stay away from projects that are only starting out. Instead, focus on the right type of development. In the long term, it can still make sense if you choose the right property.
As usual very informative..🙏🙏🙏, i need the course now🤝
Thanks my friend. Absolutely, check it out : To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration process.
Hello, great advice. Thank you! Side note where did you get the neon sign behind made?
Thank you very much. The company is called " Lumen Lazer" pop me an email and ill send you her contact details
louisreynhardt@gmail.com
Hi really enjoy the videos very informative and enjoy the fact that its local and kept simple. The spreadsheet looks very interesting, is that only from the course or available as said? It would really be appreciated?
Thanks a lot for watching. You can pop me an email at louisreynhardt@gmail.com 👊🏻
Thanks for the information. I am currently in the planning process of securing an apartment.
Pleasure my friend. Keep learning and good luck on your journey 👊🏻😎
This was such an eye-opener. Thank you for sharing your thoughts with us.
Huge pleasure my friend. Thanks for supporting the channel.
Very informative, so glad i found your channel
Welcome, thanks for the support 🙏🏻
This was eye opening to me! Thanks for sharing
So glad I can help. Thanks for watching 💪🏻
And good luck getting your money back if developer is still selling stock when you want to sell yours (medium term). Must pay transfer duty on yours but nothing on developer units for the same money.
Great insight. Thanks for adding value in the comments and for pointing this out. Appreciate the input. All the best 🏆
Very valuable insights thank you
Thanks my friend appreciate it 😁 💪🏻
Love how detailed your spreadsheet is, is it possible that you could share it?
Thanks my friend. You can pop me an email at louisreynhardt@gmail.com 👊🏻
Thanks - very informative. South Africa
Pleasure my friend 🏆 share it with someone you know will benefit from the info 🙏🏻
Another thing to consider is that if the units don’t sell out , it will be difficult to sell it for more until that happens. As there will still be new units at starting price. Had a client who wanted to buy a property from me and they were stuck because of this.
Buying off plan when they are still building in phases is just not a good idea. Thanks for sharing my friend 💪🏻💪🏻
Very helpful, thank you!
Pleasure 💪🏻 🙌🏻
you are dammnnnn right about this. they are fly by nite developers. The development, pay some corrupt officials and dissapear. I know people have have bought them with endless prbs. I bought a 1975 house and its as good as can be. I have my roof and doesnt fly away in bad weather,, no leaks, strong structure etc. Thank u for the explanation as people always think they get a good deal. Sometimes, they duck without even completing the development with YOUR DEPOSIT
They dont build them like they used to 🏚
Eye opener, thanks bro
Pleasure my friend 🏆
One thing to keep in mind when it comes to new developments. Property value appreciates if the surrounding suburban area is populated with schools, amenities both public and private and most importantly, if its situated close to a transport node. New development will most likely appreciate as it encourages investor confidence mainly for public infrastructure. True North is situated in a high potential development area meaning its projected ROI is much higher than the 9% mainly because they utilize conservative figures. I do appreciate your opinion on this development.
Thanks for your comment and for sharing your thoughts. 💪🏻💪🏻
Thanks for the info Loius
Pleasure my friend 👊🏻 😎
@louisreynhardt, just a few minutes of your video has opened my eyes 👁️ 👁️. In this regard i thank🙏 you.
Thats great, thank you for the possitve feedback. 💪🏻💪🏻
Hi Louis I really like your videos. I was wondering if you could cover how property taxes work in S.A for first time home buyers
Thanks for the support. Absolutely. Thanks for the topic suggestion. Will look into this 👌
Thanks for the great content! Could you possibly share the spreadsheet you’re using 🙏🏼
Thanks for the support.
You can pop me an email at louisreynhardt@gmail.com 👊🏻
Great video as always. Keep it up!
Thanks my friend, appreciate it 🙏🏻
love the analysis bro
Thanks my friend. Appreciate your comment 💪🏻
Hi Louis, Great advice. What is a ball park cost to create a living trust and transferring property into the trust?
Transferring costs depend on the value of the property. Setup cost depends, but usually around R5k per trust. You can contact Prosperity Enterprises and use my name as a reference if you want to 💪🏻
And these contractors that builds also lift these properties prices sky high,and the new auction trend to drain more people of money
Thank you! 😊
🙏🏻🙏🏻🙏🏻
Hi Louis, please share with me the spreadsheet you used in your presentation, I found it more interesting
You can pop me an email at louisreynhardt@gmail.com 👊🏻
I’m not in the market. My house is payed off. Really interesting information your giving on your channel. Nice info for the kids. Well done !!
Thanks for supporting the channel. Appreciate the possitve feedback. All the best 👍
when the developer realize that he/she is not making enough sale, he/she can reduce the price of second phase by as much as R100k, those who bought the same property during first phase will loose value of their properties
Thanks for sharing. But yes that happens quite often. I would avoid buying off plan. Thank you so much for commenting 💪🏻💪🏻
My sister used to rent one in Hartbeespoort. Buildings were literally falling apart 3 years after it was constructed, more sand than cement 😂
Oh no, more sand than cement 🤣🤣🤣
@lousreynhardt any companies that does renovations but not charging an arm and a song.Also are properties say in areas that are like Highlands north sort of old houses a a wise area for renovations to rent because of how the properties are selling at a low prices current?
Thanks for commenting. Unfortunately, I can't answer that question. You will have to do area research and determine whether its a good location or not. Normally, a gut feeling should also answer this question .
This post is scary. I was looking into buying a property with igrow and almost did. I'm glad i watched this. I'm definitely not going to buy a tin can with such heavy short falls
Glad the content can help. It's important to always do your research . Well done 👏🏻
Thanks Louis for sharing your insights. Would new developments in your opinion make more sense if you're looking to make it your primary residence?
Absolutely, I would just a
Still try to negotiate and structure it in such a way that you have an exit strategy. I will also just be very specific about the location of the development. Well done for pointing that out
Hi Louis, where can I get a copy of the spreadsheet you used in this video?
You can pop me an email at louisreynhardt@gmail.com 👊🏻
Must make sure you know the Customer Protection Act. You can do far as the NCT (Consumer Protection Tribunal) the fine are heavy they can loose their business.
💪🏻💪🏻💪🏻
Thanks for the video, I recently bought in a new development. I'm definitely not happy at all with the development. Also I saw someone else here on whatsapp who moved in to their new place less than a year ago and already her roof collapsed.
Thanks for watching. Sorry to hear about your experience. As long as you plan to keep the property long term you should do fine. Thanks for supporting the channel 💪🏻
Thanks Louise.i am looking to buy in Pretoria .Will appreciate your email address.
I wish I saw this before I invested in a Blackbrick development. There is also occupational interest charged at prime rate of the cost of the unit while awaiting transfer of the property into the buyer's name. This monthly fee is charged as soon as the property is deemed occupiable. In my case it has been payable from March to now which is 4 months @ R8567😢. My property is still not under my name and I don't have a tenant as yet. Currently owing roughly R34000 including the levies. In my opinion this cancels the rental assistance because by the time my property lodgement takes places I will have paid more than the projected rental assit. The other challenge is that no one knows how long it will take for my documents to be submitted at the deed office. In my opinion this overlooked occupational interest can even go on for more than a year. What is worse is that this charge is even above the rental amount of the unit which is R5900 which is actually lower than the projected rental income. I am so stressed.
Do you know how legal this is and how long can the developer drag it on . What are my rights as a consumer around this issue?
I need advice
Thanks so much for taking the time to share your situation and experience. It sounds like you've had a pretty bad experience overall. Thank you for making us aware of some of the unseen pitfalls. I would suggest consulting with an attorney or a professional who can help you go through the terms of the contract to eee what your options are. All the best
Very informative video. But then if you are buying a property that's 20years+ old, how much should you 'save' every month for emergencies? (eg. geyser/pipe bursts)
Thank you,
A good rule of thumb is to have 10% of the value of the property in savings, or you can save 10% of the bond amount for monthly repairs.
Great video as always buddy 👊
Thanks my friend. Appreciate the support 🙏🏻 🙌🏻
Great. Thanks.
💪🏻💪🏻💪🏻
Thank you very much for the valuable information. Please can you share your spreadsheet with me.
Pleasure my friend. You can pop me an email at louisreynhardt@gmail.com 👊🏻
Someone I know bought a new development apartment during Covid times. She's had to get a flatmate now because she can no longer afford it. And above that, there are so many problems with the apartment. The developers cut so many corners when building the apartments. She's had to call them multiple times to fix things.
Thanks for sharing. Sounds like they had a really bad experience.
As my personal experience buy a place after you verify body corporate financial bcz Trustees are cheating or eating people's pocket. Personal my place has 1.4 Owe to COj. When i brought i thought its my place later i realised i have to pay back old due also,
So final my opinion is before u decided to buy a place
Verify finacial
Verify history of complex or place.
Verify all aspects dont depending on advertising please
Verify future returns
Verify future payments also.
But we need some luck in our life too.. even if verify all some crazy people will damage our dreams .
Be awre of them
Thanks
Great tips, it's very important to analyse the financials of any complex. Thank you for adding value to the comments. Appreciate the support. All the best
Well extrapolated, all points articulated are very fair and honest. In this circumstances this makes a bad investment.
I always aim for some equity whenever I look into property investment (and of course depending on how long I am willing to hold onto that particular investment).
Overall lovely lesson here, good simple and basic enough to understand. Keep it up 🙌🏾
Thank you very much for the positive feedback and for supporting the channel. All the best 🏆 👍
In Gauteng for an agency to rent out your property you are looking at 10% others include vat whereas others not
In most cases it is 10% when an agency is managing the property on your behalf. You can opt for placement only then you can negotiate for about 6% to 7%.
Thanks for adding this💪🏻💪🏻
Thanks for your comment. I always try to negotiate these commissions. 🙏🏻🙏🏻
Very informative 👍
Thanks for watching 💪🏻
Hi Louis. Thanks for the great content, as always. Do you mind sharing your choice of managing agent? I haven't come across commissions below 8% in my experience - most being on 10%. Or do you negotiate?
Thanks for watching. It heavily depends on the city you invest in. I would start with the big names and find a person with a personality you can deal with. And yes, always always negotiate. The worst that can happen is that they can say no. Goodluck 💪🏻
In gauteng 10% is the norm big or small agencies. The big ones it will be 10% excl vat so you are looking at 11.5% all inclusive. I was with a small agency being charged 10% and zero vat but then it was bought by a big agency and now was being charged 11.5%. 😂 i left them last month and looked for a new small agency.
You make sense , keep it up ...
Thanks my friend 👊🏻
Good insights
Thanks for watching 👊🏻
The same situation in Romania.They sell you pictures and the house is fckd up.
Same thing in Portugal.
Crazy, cant believe it. Thanks for sharing 💪🏻
Cant believe its such a universal issue 😪
Love The Video !
I am in a situation I believe a lot of young South Africans are in. We do not have the total funds for the initial start up fee. New Developments allows us to cut out that initial R30K+ that we do not have. I have had some suggestion about borrowing the R30K+ within the bond you take as well , And YES , saving is an option but not as easy as believed. I can save about R1000 every month with will take me 30 months + to get my initial start up cost but will take time.
I have a good stable job and was pre approved for the loan amount , is it best to cut the 30 months out and include the initial fee in the bond amount or is there another option ?
I believed the other option would be a new development that cuts out that cost .
Curious to hear your thoughts.
Thanks for your question. It all depends on your situation but personally I would suggest saving up for the transfer cost. I also suggest not buying a house if you cant save atleast some sort of reserve fund. The new developments can be a great way to enter the market but then you should have some sort of emergency fund. My advice would be to understand the numbers and to be patient before you make a move. Work at your own pace. Goodluck
Very informative..
Thanks for watching 💪🏻💪🏻
I've seen that too and everything there by laws are not followed, let alone engineers never seen one
That's bad business 👎🏻👎🏻
Very informative
Thank you thank you 🙏🏻
Wooow. Very informative
Thanks for watching 💪🏻💪🏻
Many new developments: double garage with a house attached
This is the best comment I've seen so far 🤣🤣🤣🤣
Hi Louis, Could you recommend some good rental managers/rental management companies in SA...
This will heavily depend on the city you invest in. I would suggest meeting with multiple agents to determine if they actually know what they are doing. Start with the biggest names first. All the best.
I would say it's not a great way to build, but a good way to reduce your taxes.
Absolutely, great way to put it. 💪🏻
Thanks for this information we just buy houses without doing research first
Unfortunately, it's true. Hope this channel can help 🙏🏻
Great video.
Thanks my friend appreciate it 🙏🏻🙏🏻
Listen to this guy. I wish I knew this before I made this very same mistake.
🙏🏻🙏🏻🙏🏻
Hi Louis. How can I have excess to the excel sheet?
You can pop me an email at louisreynhardt@gmail.com 👊🏻 👊🏻
thanks for this bro
Pleasure my friend 👊🏻 😎
A property agent friend of mine once told me if you bond such a property whilst its still under construction, your bond repayments only kicks in once the construction is complete, is that true?
Yes, that's true, but you will probably have to put down some sort of guarantee or deposit, and if im not mistsken, you have to pay the rates on the property.
You don't pay anything till the property has registered into your name should the property registered on the March for example your first bond payment is only end of April.
New builds will always have hairline cracks its normal which the developers covers in their otp
Make sure you choose your developers wisely as there is so many new developers that just build to make a turn around. There is good developers out there with great workmanship and take pride in their work and as a agent I only work on their developments as I only want to give my buyers the best experience as referrals is key to be successful.
So always do your homework before putting pen to paper
@nickwood1852 thanks for sharing and adding value in the commentsm great tips. All the best 🏆
@nickwood, kindly share any good good developers/developments in Johannesburg?
Can we have a template of that spreadsheet?
Sure, you can pop me an email at louisreynhardt@gmail.com 👊🏻
I appreciate your show,
Thanks for watching my friend 💪🏻
I'm looking to buy soon and I'm surrounded by new developments everywhere, that's where my attention was focused on as everything else is so far.
Are there any recommendations on good developments in Johannesburg? I'll be using the place as a primary residence.
Unfortunately, I dont have any recommendations, but I would suggest making sure you view many places and speak to people that already own in the area or block. Just make sure you do your research and dont rush into it.
Goodluck 💪🏻
@@louisreynhardt Hopefully people will be honest, thank you.
@pontshomaleka1042 unfortunately, in todays life, people only care about themselves. Just make sure you do your research 💪🏻💪🏻
Hey Guys 😂(Louis)
Great content as always. Just a question and perhaps a topic for another video. Is it a good idea splitting your monthly bond payments over 4 weeks, reducing the principal every week and thus paying less interest every month? This in place instead of one payment at the end of the month.
Thanks for watching. Great topic suggestion. 8 have been considering this one for a while. Personally, i dont like paying it off quicker, but yes, Bi weekly payments can reduce interest quite a bit.
@@louisreynhardtWhy do you not like paying it off quicker?
Do you have videos of changing a house into a duplex
No, unfortunately not, but you can always consider using it as a normal multi let instead.
"What's up Loui it's Guys here" 😭🤣 only reason I clicked and watched the whole video. Ended up learning more than I thought I would
Im glad to hear you can learn. Make sure to check out my coming video on Sunday. Click the notification bell to be notified. Im sure you will enjoy it
They love marketing new developments as luxury apartments/townhouses and there is absolutely nothing luxuries about them. The rooms are so small, can’t fit a king sized bed in the master bedroom and rooms are not north facing. At this point it’s clear they just want to make money not wanting to build actual functional homes
So true, they mainly sell a dream that most of the time become a nightmare for most. All though there are great developers out there, you just need to do your research. Thanks for sharing 👊🏻
Guys I Grow is way too expensive. Imagine buying a 1bed for 869k. The worst part is tht the rental income will be lower than the actual bond calculated over 30yrs not evn 20yrs😮😮😮
Thanks for sharing. Yes, on 20 years, it will have a huge shortfall
Wish could have had this info. My bond has costed me 5 times more than the initial price.
Yho even mine, I was so shocked.
Dont worry as long as you can learn going forward. Dont be too hard on yourself.
Sorry for only posting this now. As long as you can learn going forward . Keep it up 💪🏻
Louis, as you correctly state, the value of a property in a new development will first depreciate. One reason is: why would someone buy your unit when they can buy a brand new unit directly from the developer, PLUS with those perks you took advantage of i.e. no transfer costs, rental assist, etc. If you're not 100% able to stay invested in your unit in these new developments for at least 3 years, it could end up very bad for you.
Great insight. Thanks for adding that and contributing to the channel. You make a great point. I agree that in the longer term, these investments can still pay off, but you have to be patient . Thanks again for watching.
this is Insightful, how to contact you for further assistance??Thank you
Glad it helps.
You can pop me an email at louisreynhardt@gmail.com 👊🏻
So which ones should we go for?
Undervalued used properties with cash flow potential 💪🏻
Super informative! I really think these developments are to make the developers money. They are so tiny and having lived in one -as a tenant, I know first hand that they use the cheapest materials. I was the first tenant there but the drains were already getting frequently blocked, some of the things were falling apart and there were notable cracks all around the estate and it was not even three years old. Learnt a lesson without getting burnt!
Thank you for adding to the comments. Appreciate the input. Its sad to see these new properties being built with cheap material. I do, however, think there are great ones out there
Lol I love that graham Stephan’ intro 😅
🤙🏻🤙🏻🤙🏻
Does anyone know if a developer can be reported?
Depends on what you want to report.