Rentals have not kept up with propery value escalations. There in a depressed market due for a recalibration is identified. Still scope. Great video all and all.
A crash is due, though. If renters can't afford valuations, then there is a problem (artificial value assessment) within the estate agency and bank valuation fields. Possibly further constraining the growth potential in the property market.
Respect to you man, you're the first man to use facts and real numbers without trying to sweeten the investment in my 3 years of watching property experts talk on CZcams. Thank you.
Would you recommend investing your 25% of your purchase price that covers the shortfall or rather pay it as a deposit on the property that would lower the monthly repayments? Also what strategy do you recommend for someone with 100% of purchase price in cash value that is looking to build a multi unit investment property portfolio? Should you consider purchasing 100% of the first property and use the re-finance option to acquire additional property and continue to re-finance until there is a small cashflow surplus? You should be able to afford about 3 properties with bonds on two of the three properties at a rental rate of 7-8% or am I missing something?
Why would you put cash aside to service mostly interest? By rather putting it down on your bond, wouldnt you be paying off capital rather than interest this way? Doesn't make sense to me sir.
After factoring in vacancy, maintenance and future property updating contingency fees over and above the obvious costs(bond, insurance, rates, management etc ) then physical property does not make sense in this country. The CAGR of the asset value over time is not even keeping up with inflation(if you bought in the last 15 years). With poorly run municipalities and town planning strategies, this affects the asset values worse over time.
awesome information and advice, thank you very much, love you videos, happy to see locals giving us some advice. Please make a video re private investment ownership vs a trust please.
Thank you for this great information, so helpful. As a couple who lives and works abroad and just bought our first property back in SA with 60% deposit and 40% home loan (This property is now a rental bringing in R4K more than the monthly bond installment) would it be wise to buy a second property cash and have this as a second rental or should we not use our funds?
Question. We built our house cash 17 years ago so owe nothing on it except monthly expenses. Is it possible to lend on our current property to buy another property or isn't that advised?
Marijke you can lend against the existing property or simply register a bond against the new property your intend purchasing. If the additional property you intend purchasing is an investment property it would be best to take out the loan against the new property rather than your primary residence as this has a direct tax benefit (interest expense on investment properties is tax deductible). In both scenarios the application will be assessed based on affordability and your ability to repay the loan irrespective of which property the finance is applied on. There may even be circumstances where you register bonds over both E.g If the bank only offers max 90% loan on investment/existing property, the remaining 10% can be loaned against existing property. Hope this helps. Get in touch if you need more assistance.
@@propertycornerZA thanks so much! Makes total sense. Do you perhaps have a video or plan one for the future on starting a rental income business and doing it in your own name versus putting the property in a business?
Hi, I am planning on paying off my two loan accounts, one being primary home and another is an investment property. I want to buy another family home, much bigger in size and value. What are the benefits, if any, of mentioning these two paid off houses to the bank when applying for a new home loan? What advices in terms of Dos and Don’t can you share? Thank you in advance
I always find houses for sale from distressed home owners but I lack the funds especially buying , example of house in Wilro Park I wanted to flip I offered the owners R1 180mln to sell for R1.9mln renovation and buying cost were gona be R300K... current one I want to flip is worth R2.2mIn , I want to offer seller R1.3mln - R1.6mln depedant on inspection......I need a partner with financial resources I will be foot soldier on the ground .. I am also willing to put financial skin into a deal. ..... partner can bring own conveyancer
Income generated from rental income is taxable. However, interest expense, agency fees, maintenance costs, property rates & taxes, insurance, etc are all deductible. Following my strategy of funding the shortfall, the property will more than likely yield a "tax loss" until at least the point of breakeven.
Hi Mr Alexander. I love your contact. I’m a property owner in Namibia. I was hoping to get your email or contact details so that I can send you an email. I have a few questions that I want to ask you . God bless
Sound and clear without hype.
Rentals have not kept up with propery value escalations. There in a depressed market due for a recalibration is identified. Still scope. Great video all and all.
A crash is due, though. If renters can't afford valuations, then there is a problem (artificial value assessment) within the estate agency and bank valuation fields. Possibly further constraining the growth potential in the property market.
Respect to you man, you're the first man to use facts and real numbers without trying to sweeten the investment in my 3 years of watching property experts talk on CZcams. Thank you.
Would you recommend investing your 25% of your purchase price that covers the shortfall or rather pay it as a deposit on the property that would lower the monthly repayments?
Also what strategy do you recommend for someone with 100% of purchase price in cash value that is looking to build a multi unit investment property portfolio? Should you consider purchasing 100% of the first property and use the re-finance option to acquire additional property and continue to re-finance until there is a small cashflow surplus? You should be able to afford about 3 properties with bonds on two of the three properties at a rental rate of 7-8% or am I missing something?
Why would you put cash aside to service mostly interest? By rather putting it down on your bond, wouldnt you be paying off capital rather than interest this way? Doesn't make sense to me sir.
Would definitely appreciate more info on how you analyse the SA RE market and the tools you use. Great info, thanks!
Lovely and informative video. Would love to see this illustrated on an excel spreadsheet.
same
Sage advice.
After factoring in vacancy, maintenance and future property updating contingency fees over and above the obvious costs(bond, insurance, rates, management etc ) then physical property does not make sense in this country. The CAGR of the asset value over time is not even keeping up with inflation(if you bought in the last 15 years). With poorly run municipalities and town planning strategies, this affects the asset values worse over time.
Do you own rental property?
@@mzwandilejanuary4222 yup
awesome information and advice, thank you very much, love you videos, happy to see locals giving us some advice. Please make a video re private investment ownership vs a trust please.
Will do! Glad you’re enjoying the content 🇿🇦
Cool, calm, collected and on-point. Thank you.
I assume this property is operated under a commercial venture not individual in order to benefit from tax.
This depends what your objective is and circumstances are. There are circumstances where each ownership structure makes sense
Thank you for this great information, so helpful. As a couple who lives and works abroad and just bought our first property back in SA with 60% deposit and 40% home loan (This property is now a rental bringing in R4K more than the monthly bond installment) would it be wise to buy a second property cash and have this as a second rental or should we not use our funds?
Hi ! We've replied to your question in a video! czcams.com/users/shortsChIDwYqOsHo
Question. We built our house cash 17 years ago so owe nothing on it except monthly expenses. Is it possible to lend on our current property to buy another property or isn't that advised?
Marijke you can lend against the existing property or simply register a bond against the new property your intend purchasing. If the additional property you intend purchasing is an investment property it would be best to take out the loan against the new property rather than your primary residence as this has a direct tax benefit (interest expense on investment properties is tax deductible).
In both scenarios the application will be assessed based on affordability and your ability to repay the loan irrespective of which property the finance is applied on.
There may even be circumstances where you register bonds over both E.g
If the bank only offers max 90% loan on investment/existing property, the remaining 10% can be loaned against existing property.
Hope this helps. Get in touch if you need more assistance.
@@propertycornerZA thanks so much! Makes total sense. Do you perhaps have a video or plan one for the future on starting a rental income business and doing it in your own name versus putting the property in a business?
Hi, I am planning on paying off my two loan accounts, one being primary home and another is an investment property. I want to buy another family home, much bigger in size and value. What are the benefits, if any, of mentioning these two paid off houses to the bank when applying for a new home loan? What advices in terms of Dos and Don’t can you share? Thank you in advance
I always find houses for sale from distressed home owners but I lack the funds especially buying , example of house in Wilro Park I wanted to flip I offered the owners R1 180mln to sell for R1.9mln renovation and buying cost were gona be R300K... current one I want to flip is worth R2.2mIn , I want to offer seller R1.3mln - R1.6mln depedant on inspection......I need a partner with financial resources I will be foot soldier on the ground .. I am also willing to put financial skin into a deal. ..... partner can bring own conveyancer
Really helpful!
Glad you enjoyed it
Great gems man...loving it 🙌
Thank you for the content!
Really good content.
Thank you!
Thank you , I’m living abroad , do you think it’s worth investing in property back in SA ?
Certainly. I have many clients from abroad investing in SA with good results.
What about taxes on your rental income?
Income generated from rental income is taxable. However, interest expense, agency fees, maintenance costs, property rates & taxes, insurance, etc are all deductible. Following my strategy of funding the shortfall, the property will more than likely yield a "tax loss" until at least the point of breakeven.
Hi Mr Alexander. I love your contact. I’m a property owner in Namibia. I was hoping to get your email or contact details so that I can send you an email. I have a few questions that I want to ask you . God bless
rowan@aspg.co.za