How to calculate numbers on a rental investment property in South Africa
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- čas přidán 7. 06. 2020
- Learn how to analyze a rental property and make sure your next rental property investment is a cash cow! Here I use Brandon Turner from Biggerpockets's "four square" method to illustrate how I made my first R2000 passive income from a rental property.
I share with you how I determined my monthly cash flow and cash on cash return. You can easily replicate this for any rental property investment. I also give some tips on how to make your rental income actually passive and calculating your return on time instead of just return on investment.
Calculating the numbers on a rental property doesn't need to be difficult - and Brandon's method proves it.
More channels like this need to exist so that more South Africans can build wealth
thank you
Had I known this in my younger self I would have adjusted my investment goals and focused more of my attention rent-to-let properties. It's not too late, I've just discovered this channel and will be following it religiously.
Welcome aboard and do not keep us a secret.
Thank you. You remind me of my favorite teacher in high school.
Wow, thanks!
Retha is a great teacher and a cool mom 😂
Whahahaha...!!!! I wish someone would tell my kids that.... ❤️🙈😂😂😂
this was very helpful. thank you :)
Retha this is awesome, thank you.
You are so welcome
Very insightful. Thanks for sharing! 👊👍💗💗💗
Glad it was helpful! 😊
Very informative. Thank you
Thanks for watching!
This was so beautiful. Totally enjoyed it.
Glad you enjoyed it!! ❤️
Excellent / Simple to understand! Thanks so much!
You are welcome!
Very informative, thanks for sharing.
Glad it was helpful!
Thank you very informative
Glad it was helpful!
Thank you so much for this vid. Very informative 👌🤩♥️👏🙌
Glad you enjoyed it!
So informative 🔥
You are welcome
Thanks for the simple breakdown very clear and informative especially with the expenses
Thank you! Glad you enjoyed the video
This was very informative. Thank you ma’am.
You are welcome! Glad you found it informative!! 😁
Great one.
Thank you
Loved this video. Posted it to my Facebook Expert Tenant
❤️❤️ Thanks!!
Valuable information thanks Mam👌👌
Most welcome 😊
just in time when i was about to list my 1st rental property, a lot i was not aware of.. dankie..
Glad you enjoyed it... 😁
@@MyPropertyBusiness i want to be M5 member to get training an all
Very lucky to get a cashflow positive property at that purchase price. Usual rental is 8 to 9 thousand on that investment amount spent or bond amount.
Very informative video thank you
Glad it was helpful!
Very welcome
Looks great, your percentage will also be higher because of the loan paydown amount, so it's an even better investment! Thanks for this!
Totally agree!
Thank you so much for the informations, it's very helpful, as you said if you invest it by a bank you will get 7% max, the most important at the end that property it's your business that you run and look after, which is good investment.
By the way to your kids, yeah your mom she is cool and you better be proud of her :)
Thank you
Yes, exactly and thank you
Informative
thank you
This was really insightful, how would you calculate a cash on cash return if you are renting a house with a flat at the back (I sublet the flat), there would be no capital outlay.
that would be divide by 0 which gives you an infinite return 😄
Thanks for insightful video. How did you find the property and how did you know multiple strategy would work in this area. Also how did you find your agent as most agents are familiar with renting out to single tenants.
I found the property through a normal agent. They were selling as a single house, they didn't know about the multiple housing strategy.... I just saw the potential when I was there.
The property was in a busy street and I could see on TPN investors report that people are doing smaller unit rental in the neighbourhood, then spoke to some local rental agents to confirm :-)
Thank you so much again... I appreciate your video....quick question is it worth buying a property if it does not give you positive cashflow for the first time ?
Not at all in our books. Then its a liability
My ratios are negative. Should I sell my property? (it used to be my primary home and I moved out).
Hi. Do you offer attendance classes? If yes how can one get more info for attending?
Where is thr mortgage principle in all this??
Hi Retha, I am watching this video a second time as I’m ready to implement your advice. I notice that you mentioned insurance but didn’t include it in your calculation. Is there a reason for that? Also, what is your take on tenant insurance. TIA.
Hi Jabu, thanks for spotting this however I am sure you got the fundamentals of the video?... emm I am too keen on it, the property is yours and then you have a tenant paying insurance. If something happens where does / who does the insurance pay?
@@MyPropertyBusiness my understanding is that the landlord pays insurance and therefore gets paid put should the tenant be unable to pay rent.
The comparison between 160 hrs and R2260 doesn't make sense to me. If you don't mind to explain
👏🏼👏🏼🙏🙏
Hi.. hope you good? I want to start the same business but Ive been doing research before i begin. Lets say I start the same business and decide to buy 3 properties cash without taking loan from the bank and buid 12 units on each property and I manage to get tenants how much tax will I have to pay if I make over 100k will I fall under the 28% tax bracket if i registered under a company or is it 48%? Also lets say i decide to purchase another property with the profits that ive made will I be able to deduct when paying tax, can I write that off?
How much are you courses and which one would you recommend for a beginner?
Hi Nontuthuzelo
This class is normally R5997 however we are running a live class on 50% discount and you are welcome to join in.
Click on the link below and register for the up coming class.
www.m5propertyvarsity.com/property-investing-beginner-tips
Risks ?
Hi there my name is benni
I have a two bedroom house 🏡 is free state at Kroonstand ... am having problems naming the price of my rental
They’ve are playing R1400 as we speak 🗣. I think the money is goo less but because the house was not in good conditions I accept it. But now that I have improved the house .. what can I say to them to get more?
Hi What is the rent in the area and how far out are you from the current rent. I would have advised them of the improvements and price change before renovating and if they were not willing to pay the higher fee. I would have given notices. Which you can still do
Hi, how do you recover electricity i find that very interesting
We do prepaid meters in the rooms to assist with overuse. The rest of the electricity in common areas are included in the rent.
Thanks for the good video. I would like to understand more how the electricity is income or how you structure it. I see you have meters in the rooms.
Hey new subbie, May please clearify on getting R1000 back for electricity, I don't understand how that works.
You can get an aftermarket (non-municipal) electricity meter that the tenant then buys units and that money gets paid to your account directly by the metering company
Thanku for the video !Where do l get more information about property zoning in SA?
Look for the town planning videos on our channel we have done a few videos with a town planner talking about zoning and everything around town planning
Are you helped?
Hi there, how do I be come a member, I'm from Cape Town
www.m5propertyvarsity.com you can join from here
What about rental income tax? Did you budget for that?
When investing, yes one needs to include all these - however depending on your structure - tax can work for you or against you.
@@MyPropertyBusiness thanks for the feedback.
Why does the income need to be passive?
as opposed to ?
How much does it cost to build a flat in South Africa ?
there is no one answer on this, anything from R100k - R1m it depends on what you are building and the finishing
I don't understand why she excluded the R900k Bond from the Ratio. R900k is still cash borrowed from the bank to buy the property. I
why don't you have your property insured?
In case it burns down, they also cover things like Geyser bursts that could cause a fair amount of damage.
@@MyPropertyBusiness yes I know, but u did not add it as one of ur expenses
Hit like for the kids🤣
you know
My comment is quiet irrelevant.
I'd like to know how can one find funding for a rental proposal
hi Lefu, maybe ask your question in a different way...
@@MyPropertyBusiness i have drafted a investment proposal. On which platform can i find investors to present this proposal to them
I loved the video however now I'm looking to ask if you could assist me in getting started, financially.. so if you dont mind, please get in touch with me?
I have an income of 35k pm now.. and I have 4 vehicles offering ehailing services.. but I very much want to get into properties because, well.. less headaches than the cars..
Cell: 081 323 7632
Charlie.
www.m5propertyaddicts.com/GrowMyBusiness here we go, lets see you in class
Hi im 25 and been interested in property investments since high school, ive been reading books, watch videos got advice from people like Robert kyosaki, grant gardone and Patrick bet davids. But i would like your input on something since you are south African, is ther a way i can contact you
reach out to us on here and we will help where we can... bit.ly/Be-my-Mentor
Hi. How do i contact you
Hello@tauraijack.com