Pros and Cons of Buying Property with Cash | Here's why its important
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- čas přidán 8. 01. 2023
- IF YOU ARE CONSIDERING BUYING PROPERTY CASH - Here are the Pro's and Con's
Here’s a direct link to the videos mentioned in this video :
Refinance : • Refinancing a Property...
Roi : • Property Return on Inv...
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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.
Having cash or not I will still finance all my investment properties, what would you do ?
I thought it was good to put more cash or buy in cash.
I agree - I think it just makes so much sense to finance investment properties. The cash can be used to pay off the house I live in.
Louis I think I need your advice. My partner and I just combined our finances this month and I don't have a house yet. He has a 30 year bond. I want to invest in property and have at least 100 units at least. Do you think is wise to do that in my name or in a trust?
@@nomafmaroga6827 The wise thing to do would be to buy within a seperate entity. I saw your message about the one on one sessions. Send me email and we can go from there. It will definitely not be possible to buy 100 properties in your own name.
Cash
Very educational and accurate video, thanks for publishing this content on YT without a fee, the world needs more South Africans like you! 🌍
Thanks for the positive feedback and for supporting the channel. Im glad that you find my content valuable 🙏🏻🙏🏻
I'm addicted to your videos..😊
Thanks my friend. Appreciate the positive feedback 🙏🏻🙏🏻
Keep it Up Man, We following ❤
Thanks my guy. Welcome to the channel 🙌🏻💪🏻
Great video, very clear. I’m based in UK, but much of this is still applicable here. In the current climate, IMO, with high interest rates it’s more attractive to use cash and have little or no mortgage. Also some of the tax benefits of getting a buy-to-let property with a mortgage have been taken away in UK. Others might disagree, but I’ve done the maths and unless the property value is low / rental income is high enough, the ROI doesn’t justify taking a mortgage. Thanks.
Thank you for sharing. I hope that someone can learn from the info shared. Remember, the more money is invested, the lower your cash on cash return will be. Hence, people use mortgages. I do, however, agree that high interest rate environments make it difficult to get good returns. But it's definitely not impossible. You just need to know what type of properties to look for. There are still a lot of tax benefits for buying property with a loan in South Africa, but that alone should not determine your investment style.
thank you louis, i think i dislike the fact that if i buy a property cash, selling it is not that freely easy
I agree, it has its advantages but still has some disadvantages too. Thank you for sharing. At the end of the day, you should do what works for you. Hope the channel can help in some way 🙏🏻
Great game sir, very well put!!
Thanks so much 💪🏻 🙏🏻
Very informative, thank you so much! Ps: you don't need to talk in slow motion lol
😄 Yhank you very much. Sorry, I was concentrating
I love your videos!
If I refinance my current property and use the funds to buy another property do I still get the tax deductions if I’m not taking out a new bond to buy the new property?
Thanks for watching.
Yes, because a refinance is a loan, you still have the tax advantages. Consult with your accountant to confirm this for your specific property and structure.
How do I speed up the audio?
Hi. Im low income but do have money to buy a small home in order to rent out. This will not take away from my daily expanse. I was thinking that once I’ll rent it out this will possibly help me end my hard low income job. This will basically be an income once the home amount will be paid off of course. I would extremely appreciate your advice/thoughts since it’s my first experience.
Hi there, thank you for your comment. Congratulations on taking the time to educate yourself. Although it might seem like a good idea to buy property cash, sometimes using the banks money can help you even more. Theres a lot of things to consider before deciding which strategy to follow. Always work on improving your credit score and focus on increasing your skills so you can increase your income.
If you want to, you can join my lowest membership level so we can book a 15-minute Zoom session. From there, I can help out a lot more.
Hope this helps in some way.
Hello there, Louis. Thank you once more for another fantastic video. I'd like to ask a question that is slightly unrelated to this video. Please forgive me; I simply saw an opportunity and decided to ask. I purchased shares after watching your videos over time. I bought these and realized that they were making money, so I tried to take only the profit from these shares that were making money. I've noticed that every time I do this, I lose my principal, which defeats the purpose of simply trimming the profits. Could you direct me accordingly here because I am definitely doing something wrong?
Hi Sean,
Thank you for your comment. I will gladly help. Maybe you can share some numbers as examples just to clarify some things.
What are the profits that you take, d
For example, 5% or 20% ?
It might be because of the fees that are involved when selling. Are you using limit orders or Market orders?
@@louisreynhardt I usually aim for 5% and over in profits nothing below that. I only use limit orders on my GB account. The fees involved are not so much to really ofset my principal when calculating the amount taken.
@@louisreynhardt I appreciate your help.
It might look like it's using only your principal, but it doesn't really matter as long you make the profit If you invest R1000 and take 5% profit, at R1050 your balance should still be R1000?
If you want to, you can send me a screenshot of the exact transaction and email me at louisreynhardt@gmail.com.
If you want to focus on trading and taking profits early, you might want to look at Gt247 instead. Its Easy Equities trading platform.
@@louisreynhardt I will get you that screen shot the moment conditions allow, in fact i might even do it even with the slightest of growth. Honestly these type of platform is new to me I am used to Equate Plus which allows you to purchase shares and when the time come you get your dividends without you looking into it much.
I feel like I could sleep at night paying cash. 😂
True that. 👍 buying cash will definitely give you peace of mind.
Cash is king
Just for clarity
Your vidoe has 4 parts
1 Buying property with cash pro & con
2 Buying property with bond pro & con
3 buying investment property with cash pro & con
4 buying investment property with loan pro & con
Is this right by saying??
Yes thats Corect 💯
If I bought a house in my name, can I set up a trust(or holdings company? I guess) then buy that same house from myself again?
i.e Let's say I had homeloan of 750k, the house is in my name, can I the create a trust/holdings and then put in a offer to buy that same house from myself for 1mil? If so, how would it work then, can I just dump the 1 mil given to me by the holdings into paying off the loan the bank gave the holdings?
In Short , Yes.
You can sell your property to your new trust or holdings company. There will however be cost involved such as bond registration and transfer fees because it will form part of a new transaction.
You will also have to prove to the bank ( If you are using a loan) that you can afford the loan in the new entity.
It is best to consult with a Attorney to guide you n the process and most important the cost involved.
Hope this helps.