Buy to let investment

[marco79]

He's not lying, I stay in Blue Downs as well. There's quite a few developments taking place in Blue Downs and Kuilsriver/Blackheath. A friend of mine moved into a complex (opposite the courts there) and paid around 390k for a two bedroom place - I kid you not)

Out of curiosity, where do you stay?

I have to drive past one of these places daily, I'll see if I can get the developer's details and price for you.

R390k for a 2 bedroom house. The flats are going at R329k to R349k. Please find out from your friend, if he's living there, if it would be worth buying in that specific complex.ie Belladonna

I used to stay in Tuscany Glen for a about 5 years but a year ago I bought a house in Rosedale, Eerste River.

 

[DJ...]

I'd say tread very carefully. If something sounds too good to be true, it usually is.

If these developments really were cash-positive on transfer, they'd have been taken up by a consortium already...

 

[azbob]

Is this a, I don't know how to say this without sounding offensive, really low class area?

 

[phoneJunky]

The agents are lying to you SOMEHOW...

R329k development, will have a bond (at prime over 25years) of R2760 per month.

I have yet to come across property where the rate of the bond is lower than the rent from month 1.

Well here in Gauteng I also see developments for R450K that is being rented out for R4K. A similar house than mine that I bought 2 years ago are being rented out for R1500 more than my monthly repayment in my area.

I just think not many people can afford a deposit.

 

[Alton Turner Blackwood]

Is this a, I don't know how to say this without sounding offensive, really low class area?

There are two RDP developed suburbs not too far from where we're referring to. Mfuleni and Wesbank, I think that influences the price.

Also Eerste River / Blue Downs are traditional "coloured" areas <-- and we don't like paying

 

[azbob]

I've seen a lot of cheap property in the Tableview/Parklands area. I hear there might be some RDP developments there too. Anyone know about this?

 

[Alton Turner Blackwood]

Aha! Me gots a linky fo ya'll

http://perhaps.co.za/a/show/belladonna-estate/466669

 

[ToxicBunny]

Jees those places are ridiculously tiny....

 

[marco79]

http://www.belladonnaestate.co.za/index.htm

 

[xrapidx]

Lower cost places generally do have very close bond to rent ratio's....

 

[xrapidx]

Jees those places are ridiculously tiny....

I know someone staying in a 32m2 flat... :wtf:

 

[DJ...]

I know someone staying in a 32m2 flat... :wtf:

Putting a shower in your garage doesn't make it a flat...

 

[xrapidx]

Putting a shower in your garage doesn't make it a flat...

I think a garage is 36m2

 

[marco79]

I think we are getting off topic here. I would like to know whether it would be a good idea to have a buy-to-let property as an investment? I am planning to put R3000 per month into some sort of investment and was thinking to put this into property.

If I can rent it out to cover a portion of the bond then all the better. I will pay the shortfall of the rent to the bond, insurance, levies, agents commission, rates, etc and invest the difference of the R3000 into a unit trust.

It will not be this specific development and thus I said I will do some research in this regard. This development is close to home so I can drive through it over weekends and see if there are any current baddies lurking around before I make my decision to buy.

The other development in mind is in Brackenfell. Rent for similar apartments in this area are reaching Between R3500 & R4000 per month.

http://capetown-westerncape.gumtree...ging-from-R329-900-R420000-W0QQAdIdZ393979900

http://www.cpgroup.co.za/node/17

http://www.seproperties.co.za/residential_property104.html

 

[phoneJunky]

I think we are getting off topic here. I would like to know whether it would be a good idea to have a buy-to-let property as an investment? I am planning to put R3000 per month into some sort of investment and was thinking to put this into property.

If I can rent it out to cover a portion of the bond then all the better. I will pay the shortfall of the rent to the bond, insurance, levies, agents commission, rates, etc and invest the difference of the R3000 into a unit trust.

It will not be this specific development and thus I said I will do some research in this regard. This development is close to home so I can drive through it over weekends and see if there are any current baddies lurking around before I make my decision to buy.

The other development in mind is in Brackenfell. Rent for similar apartments in this area are reaching Between R3500 & R4000 per month.

http://capetown-westerncape.gumtree...ging-from-R329-900-R420000-W0QQAdIdZ393979900

http://www.cpgroup.co.za/node/17

http://www.seproperties.co.za/residential_property104.html

I think it is a good investment. You will probably have to pay in about R1000-R1500 a month the first year. After year 3 you should be able to break even. The bond is one the, the property rates/levi another. If you can rent it out yourself it would be better. Agents take 6% per month for just getting the person there. Rather advertise on privateproperty or something like that.

 

[blunomore]

I know someone staying in a 32m2 flat... :wtf:

Bachelor's flat, I presume ?

One room, bathroom and kitchen?

 

[patrick]

Property is a great investment, but at those pricing levels your tenants won't be the most reliable around. It might turn out to be reasonably high risk in terms of getting tenants to pay on time.

 

[xrapidx]

Bachelor's flat, I presume ?

One room, bathroom and kitchen?

Nah... two bedroom :wtf: apparently the second bedroom is the size of a closet, i.e. - you won't get a twin bed in there.

I'll try find the floor plan

 

[blunomore]

Nah... two bedroom :wtf: apparently the second bedroom is the size of a closet, i.e. - you won't get a twin bed in there.

I'll try find the floor plan

Wow, that is seriously small.

We live in a very old apartment block (30+ years) but the apartments are very spacious ... some are bigger than townhouses. That's the upside to living in an old building. Downside is of course constant maintenance.

 

[marco79]

Wow, that is seriously small.

We live in a very old apartment block (30+ years) but the apartments are very spacious ... some are bigger than townhouses. That's the upside to living in an old building. Downside is of course constant maintenance.

The house we bought last year was built in 1979. When we were looking at new places in our price range, we couldn't even fit our bedroom set into the main bedroom. The headboard was even too wide.