I AM THINKING OF SELLING MY RENTAL PROPERTIES - HEAR ME OUT GUYS!! | THE IMPORTANCE OF CASH FLOW
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- čas přidán 23. 07. 2024
- Yes, I am thinking of selling both of my rental properties - in this video I share the importance of cash flow in property investing - if the property doesn't give you a positive cash flow then it just doesn't make sense.
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Good teaching skills. I can't believe all of this information is for free. You speak so clearly and you don't use complicated jargon which makes it easier for all of us to understand. Thank you for the videos.
Really appreciate this comment. Thank you so much 🧡 haha CZcams is filled with so much free valuable content it’s amazing! I’ve learned so much from watching similar CZcams channels!
I'm thinking we're perhaps too focused on the cash flows that we may neglect the non-financial aspects of owning a rental property. I think the Waterfall property is good security. It's a booming area, there's definitely no uncertainty when it comes to natural appreciation there. Also consider the growth potential of rent in the area. Your positive cash flow is likely to increase overtime. I've always looked at property long term, that you may not necessarily make the desired cash flows now but there's potential for it and it is probable
I agree, hence I am hesitant to sell this one just yet. But there’s also a possibility of interest rates going up as well as my other expenses on the property going up over time but it’s worth it to do a future cash flow analysis on the property. Thanks for engaging!!
Property is indeed long term, you might not see your fruits overnight but I would like to diversify my property portfolio and look into something that will yield a positive cash flow from day one - this will help esp if you are trying to grow your portfolio.
Firstly. I appreciate the transparency. Secondly - positive cashflow is king 😅. I need to drill this in my head
The number one rule of property investing!!! If you can get this right then you far ahead of the pack. Thanks for watching 🧡
And this pandetomic has taught us that there's nothing that is a guarantee. You're absolutely right, this was definitely serious talk, and some of the things you said I already knew and the other part, I learnt a lesson from you. I have an airBnB on my one property and it is giving me positive investment income and I'm planning another AirBnB. Thank you for this video.
Thanks for watching!!! Nothing is guaranteed at all - I haven’t looked into the Airbnb route but that’s definitely something I would like to research and explore. If it’s yielding a positive cash flow then that’s a great start!!
Cash flow is ideal when the plan is to scale up. But selling now will be a mistake for you because you have already paid for transfer costs. Unless the place has appreciated drastically, you'd be loosing money. I'd rather put more money into the bonds to make my monthly repayments lower. Use the R800 to put into the negative cash flow property
Thanks for the advice. Still holding on as this is a long term investment for me:)
I feel as though you should keep the Waterfall property and then take us on a journey on how you can actually increase the positive cash flow of that property. I’d love to see that! Of course if this is possible. Great video, we definitely needed this serious talk and as always, I learnt a great deal!
It’s def possible to increase the cash flow over the years - waterfall is a booming area and the rental income is likely to increase as the demand is very high. I should do an analysis on this def. thanks sis 😁
I agree with Yonela to keep Waterfall, my reason would be that, the plus minus R800 that u make from it, is money u can use to “invest” or save that money. As difficult as it will be, try not to use that money for day to day expenses so you can later see the fruits of having an investment property. Also keep it if you will later need the property for yourself to live in it or for your kids, after you have made money from it.
Lol also the option of selling and getting the R200k, I see good plans that can be used with that money, still within property. All the best😅
i disagree with the natural appreciation part. as long as the inflation rate is positive, then the price of the property is guaranteed to go up with inflation
She has indicated that its not a guarantee which means it can or can not. Given where we are with Covid19, some houses have appreciated yes but people are not financially ready or in a position to buy so technically as a property investor buyer you in a difficult situation.
Goodluck with your new investment.
I think it's a good decision. It makes sense.
Thank you for sharing all this with us .
thank you so much for watching Khuukhen
Makes so much sense!! Definitely learnt a thing or two.
Definitely something to think about. Thanks for watching 🧡
Assets vs Liabilities.... Hmmm deep stuff right here!!!!!!. I hear you; this makes sense Hun. I love how open, genuine and factual you are here. 🤗
Thanks for watching. If it’s not making you an income we can’t call it an asset babe!
clout is expensive
It is indeed.
Yolz property is a long term
Investment. Perhaps do a long term cashflow projection and see how long it will take to become cashflow positive, because it will happen. If it takes more than at least another 3 years then may be you should let go. If you feel strongly about selling, do it one at a time. Waterfall should not be sold yet unless you are swopping it/buying it for a 2 bedroom which accommodates a young family. There are positives there. Let me pause here.
I agree Maki. Will def hold onto the waterfall property for longer. I think for my next video I will include a cash flow projection on both properties as that will help me make a much better informed decision.
Thanks for watching and engaging 🙏🏽
Cashflow is definitely everything. Especially when interest rates go up. However, my mind is racing! How will you go about finding these distressed sellers that will sell significantly below market value? And how do you compete with cash buyers in that space? It seems to me that people who make large cash flow from their investment properties buy low cost housing and they turn them into flats or housing for multiple tenants. Like student digs,etc. which requires a lot more management.
I’m having so many thoughts🤣 you are so right though, we can’t rely on natural appreciation anymore. Not with property prices being like a million right now.
Haha it’s def not easy to compete in this space - most of these properties are in middle class areas in Johannesburg South and you are certainly right that a multi let property is one that is likely to give you a positive cash flow - this is the journey I’m on now and those are the types of properties I’m looking to invest in. It can def be a nightmare to manage and also comes with added risk but I wouldn’t advise you manage such a property yourself.
Thanks for watching Siviwe, really appreciate it 🙏🏽
Please keep these videos coming. This was helpful in so many ways! ❤️
There’s definitely more content coming! 😉
I’ve actually never thought of getting an investment property but after listening to all your videos, I might actually get myself one.. Great lessons learned here.. 🙌🏾🙌🏾🙌🏾
Also feel you should consider keeping the waterfall property..
Thanks for watching friend - property investment is long term so the earlier you start the better!!! A positive cash flow property in the right location/area is the best combination. I will hold onto the waterfall one for a while but the other one needs to go!!!!
I feel you sis. I'm exactly where your at now. Liabilities must go. Here's to positive yields all the way.
Yes babe. only things that yield positive growth need to stay :)
very insightful! 🤗 thank you
You are most welcome! Thank you so much for watching 😊🙏🏽
Unicorn is featured in the video 😉... we see you unicorn 🦄
Hahaha unicorn compliments me well don’t you think 😂 thanks for watching friend
cash flow vs capital growth. The property might not be positive cashflow but growing in terms of capital growth. It like you are buying an asset worth millions for only R300 so for me it doesn't meter whether you make money now and also most of the properties with positive cashflow requires a lot of down payment. Don't sell.
That is true - however to get the most ROI out of your investment you would want both. a positive cashflow plus growth in terms of capital growth.
Property talk with Yolz stan account! ❤
My number 1 supporter! Thanks for watching!!
Its 2024 please update us on this
Insightful video once again😻.
When you do the video on your 2 properties, their expenses and their maintenance costs please also go in further detail regarding maintenance costs. What those are like actual examples of them, are these monthly costs as in every month costs, how can I calculate them accurately prior to buying or when looking to buy an investment property and how to best ensure that I don’t overspend when maintaining an investment property monthly ?.
Thanks for watching - my latest video is on how I calculate cash flow on one of my rental properties and I go into all the expenses one has to consider, please do check it out :)
"Natural appreciation of a property isn't definite"😕🙉 #profound
Looking at past trends property tends to increase in value but yep - nothing is guaranteed. Thanks for watching 🧡
Trust me Yolz you not alone , i have one of my properties that eating from my pocket at the moment. We bought that house thinking its gonna generate income for us but we were wrong . I think it was a rushed emotional decision . The property has been empty for about 5 months and its really stressing me out . I think the next best decision will be to sell it and mayb buy something @a different location or mayb turn it into a bnb . Really confused
Honestly Gugu if something is taking money away from you then you need to consider such options - but whatever you decide to do make sure you do enough research , that’s the most important step - most of the time we find ourselves in such situations because we made a rushed decision and didn’t take the time to understand and research before making a decision. Good luck with everything 🙏🏽
Honestly Gugu if something is taking money away from you then you need to consider such options - but whatever you decide to do make sure you do enough research , that’s the most important step - most of the time we find ourselves in such situations because we made a rushed decision and didn’t take the time to understand and research before making a decision. Good luck with everything 🙏🏽
Thank you so much ! There's defs a lot to think about !
Thanks for watching babe!! I just need us to be aware and make wiser decisions on this property purchasing journey
Hahaha “as we learn from your mistakes”.. ❤️
Haha when you know better you do better 😉
Hi Yolz are the 2 properties you own free standing or sectional title?
Hey Brendon - both of them are sectional title - one bedrooms.
Just because the property is not making money now does not make it 'not an investment', it could make money in the future, depending on the location and type. We all know property appreciates in value. Any investment has its own unique risks. You say "You need to invest in a positive cash flow property. You property needs to make you money from the day buy the property, if it does not make you money then it is not a property investment". I understand where you are coming from but property investment takes time and patience, it has been proven many times that it is not an overnight investment where you buy and get positive cash flow the following months, this happens rarely and is most likely when you buy the property cash. In some instances it could take years before you see positive cash flow and people need to be patient while monitoring the property market. I do not believe property investment is a liability based on it not generating income at a present moment. You invest in property based on feasibility study and the potential the property has. World War III is as an example is a stretch but I do understand the point you are trying to convey. The property market has proven to be a more secure and safer method of investment because of the less likelihood of the market crashing, compared to other investments. Even now with Covid-19 there has not been a much drop in prices, only interest rate dropped significantly.
Since you are thinking of selling both of your investments, and yes they are investments even though you are not making money on one. Investing is about looking in the future rewards, return on investment. You might not be making money now but you could project as property appreciates most of the time.
I suggest you do not sell any of your current property investments but rather speak to a bank manager and show proof that you are getting rental income from both properties and the tenants have secured your investments by deposit fees. You can still buy the new property while you still have these two as they will see that they are rented. Also consider the money (transfer costs) you paid when you were selling these properties before you count your profit.
I definitely agree with everything that you have said - but knowing what you know now and if you had the chance to buy an investment property now would you not rather look for something that is cash positive from the get go? For example look for a deal from a distressed buyer, negotiator the price and optimise your rental income while minimising the expenses. In my opinion that is the smart way to invest in property now. Also if you are cash flow positive that is additional income coming in which will increase your affordability with the bank to get more finance. I think in essence this video was just a wake up call to start thinking and approaching property investing in a different way. You can still make the money long term while reaping the benefits now as well :) thanks for watching and always engaging really appreciate it 🙂
@@PropertyTalkWithYolz Oh very good point and insightful. Ndibhidwe nje xa usithi if you are not getting cash flow kwangoko then it is not an investment. Which you have clarified. I appreciate your positive response and please do not stop! You are doing an amazing job. I love it here!
Ndizibonela i unicorn mna
🤣🤣🤣, behave
Unicorn has become the Property Talk with Yolz mascot , we love it 🤣
Haha Tshepo 🤣
I want to know how you get to qualify for multiple properties, as this also affects your affordability, how do I inform the bank that the properties I'm acquiring are for investment purposes and not owner occupied
Hi Tiyani, the first property that you buy Will always be based more on your affordability because there is no track record of rental income that you are receiving, however when you are applying for funding for your next property you have to prove to the bank that you are receiving rental income on your current property ( through bank statements) or they will ask for a signed lease agreement to prove that you have a tenant who is paying rent. This additional rental income will then add to your overall income to increase your affordability for future investments.Thank you so much for watching!! 🙏🏽💜
@@PropertyTalkWithYolz Awesomeness, this just clarified everything, Thanks so much, God bless you 🙏🏾😊, keep up the good work
Ndingafa yiR300 profit 😭😭😭
Hahaha Push ibiyi R300 bendingenayo sisi 🤣🤣🤣
True ke phof 🤭
Your definition of an asset is incorrect, an asset is everything you own that has value, what you are referring to is an investment property.
true - this definition is in the context of property investment as that is what my channel focuses on.