Buying a house....

itsme2 said:
I'm saying that to own a property that doesn't make you a return is a liability. Now perhaps you bought years ago, and the sting has gone, but overall, look at how much interest you'll have paid over your 20 years. Add to this maintain costs and all of the fees, bond costs etc. No look at how much that would have made you with 20 years of investment.
And yes, low risk properties are a great idea. Flats in the right places etc.
Of course do whatever. I'm just saying that it's not always the right answer to purchase assets, and that often assets are not always in the favour of the supposed owner.
Click to expand...

Its also not always the right answer to rent...

Its hugely complicated and nuanced and the answer depends on hundreds of factors.
 
Chinmaya said:
whenever you go through someone that applies for loan on your behalf they get a upfront payment on your behalf as they applied for u and longer the term better for them as every month a small % of monet goes into them.

Why the hell somoene will want to apply for loan on your behalf? Charity? Fools must understand the motives. If your bank would have give you 9, through these they will charge you 9.25 and the excess goes to them.

Prove me wrong if anyone here is in this business. Nothing is free in SA
Click to expand...

Well given that the contract is between you and the bank, not this third party... you are wrong. They don't get a cut each month, they get a "finders" fee of sorts as a once off payment on successful application.
 
itsme2 said:
I'm saying that to own a property that doesn't make you a return is a liability. Now perhaps you bought years ago, and the sting has gone, but overall, look at how much interest you'll have paid over your 20 years. Add to this maintain costs and all of the fees, bond costs etc. No look at how much that would have made you with 20 years of investment.
And yes, low risk properties are a great idea. Flats in the right places etc.
Of course do whatever. I'm just saying that it's not always the right answer to purchase assets, and that often assets are not always in the favour of the supposed owner.
Click to expand...

I see where you are going but your argument is flawed in a number of ways, not to mention very general in it's assumptions. Renting, in purely financial terms would never work for the house that we have at the moment, it would cost more in the long term to rent than to own.
 
itsme2 said:
I think it's a foolish decision to buy property as your primary residence. You'll get a lot more by renting. Rather buy to rent if you really feel the need.
Click to expand...
So buy-to-rent is good? (Implying that renting is more expensive than buying otherwise you would never make a profit in a buy-to-rent arrangement)
However just buying is bad?

Seems to me like your points are contradictory...
 
Jehosefat said:
So buy-to-rent is good? (Implying that renting is more expensive than buying otherwise you would never make a profit in a buy-to-rent arrangement)
However just buying is bad?

Seems to me like your points are contradictory...
Click to expand...
back to economics class for you. Read what I said
 
Other than monetary considerations, I hate having a land lord. Buying solves that.
 
itsme2 said:
I'm not here to make your decisions for you. Make your own mind up. I'm just saying that one needs to be open to the fact that BANKS SELL DEBT. Banks say that you NEED a house. A physical property is a way better bet for a bank than a business prospect. Ever tried to open a new business on a bank's dime? Good luck.
Click to expand...

I think you miss the point how you can use a bank towards your advantage to own property !
 
ScottulusMaximus said:
OH NO!

If only @itsme2 had posted 2 months ago he could have saved me from making a HORRIBLE mistake! What ever am I going to do now...

Oh wait I know! Pay off the bond in 5 years and then live basically for free, I think I'll do that.
Click to expand...

NO! that is wrong... renting is cheaper... always...
 
A tenant paying rent will soon start making the calculations and find out that over 20 years rental of R10 000 per month that escalates every year with 10% will cost around R5 491 435 in rental paid during that period of time.- so yeah If you renting for 10K now the property you are in is not worth more than 2.5 bar.
 
itsme2 said:
I think it's a foolish decision to buy property as your primary residence. You'll get a lot more by renting. Rather buy to rent if you really feel the need. SA economy is too unstable, and property rights are not honoured nor are protected. There are plenty of worksheets showing the actual cost of buying vs renting, and if you do the maths yourself, you'll see that the better choice is to rent. You'll get more for your money, you'll be flexible, and you can still save and invest, but rather in offshore markets. Think about it this way (since you mentioned marriage), who tells you that diamonds are forever? Who tells you that you NEED to own a home?
Click to expand...

That’s all well and good and correct until you realise a house as a residence is a lifestyle choice similar to somebody driving a 5 series BMW instead of a Picanto.
 
Scooby_Doo said:
This.

Buying a house is not an investment if you live in it.
Click to expand...

100%... its a lifestyle choice, and if played correctly can work to a persons benefit financially in the long run, but it should never be seen as an investment.
 
Purchase allows you to speculate on property, and hedge against property increases. Buying with a bond is an inflation hedge. It also frequently offers different property type choices, and/or the ability to customize the property. It has high fees, and is illiquid. Depending on where in lives there may also be tax implications.

Similarly, there are trade offs for rental, buy (outright) to rent, and buy (with debt) to rent.

Due to market efficiency there will never be an outright winner for one versus the other, it depends entirely on your situation and the quality of your research.
 
Mike Hoxbig said:
Irrespective of your prepaid or postpaid, you still need an account with them for rates & taxes.

I just asked the transferring attorney to assist with it. They put me in touch with someone who claimed my refund from the previous place, and opened an account for the new place. Cost about R900 IIRC. Worked out cheaper and more convenient than taking a day off work to go and sit at the municipality myself.

Even after that, I still had issues to get my statements emailed to me. Had to register for eServices on the CoJ site and set my preferred option to email, and eventually I'm getting emailed statements about a year later...
Click to expand...
I went in on a Tuesday at 9am, walked out at 9.20am lawyers wanted to charge me R2000 to do that. It took me 20 minutes had the rest of day to myself.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X