Following my previous property purchase thread

Yeah I have about 9k liquid per month - bishes work on 30% of gross though so gotta stay in the 400-550 range
 
How about give us the actual suburb and then we can give real opinions on the future prospects of these appartments ;)
 
2 bedroom would be tableview - north/south road running parallel to bayside
Could also get a 2 bedroom in Durbanville - also small

Or 1 bedroom - Arum/Tritonia near beachfront
 
DrewChan said:
2 bedroom would be tableview - north/south road running parallel to bayside
Could also get a 2 bedroom in Durbanville - also small

Or 1 bedroom - Arum/Tritonia near beachfront
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and now the direct gumtree links to the apartments.
 
Are you responsible for maintaining the outside?

That can be a real pain and expensive as the sea air seems eat everything it touches(If your car is not in a garage that will be included).
 
DrewChan said:
A friend of mine said the same - surely renting you are throwing away 4k+ a month for nothing.... with a minimum of a years lease It would cost me 48k too rent -

How does that compare to the additional costs when purchasing an apartment
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What is the purchase price?

I will do a few sums based on an assumption of R600k purchase.

You will have to pay fees of approximately R25k on the purchase (Transfer costs, and Bond costs).

You will therefore need to hold the property until it has appreciated by 5% just to break even on the property.. and property is not going up by 5% PA atm, so you will probably need to hold it for 2 years at least to break even on that property. You will also need to factor in the Interest you will pay on the bond.

If you are in this for the short term, then renting is much better than buying, unless you are planning to hold onto the property and let it out.
 
ToxicBunny said:
What is the purchase price?

I will do a few sums based on an assumption of R600k purchase.

You will have to pay fees of approximately R25k on the purchase (Transfer costs, and Bond costs).

You will therefore need to hold the property until it has appreciated by 5% just to break even on the property.. and property is not going up by 5% PA atm, so you will probably need to hold it for 2 years at least to break even on that property. You will also need to factor in the Interest you will pay on the bond.

If you are in this for the short term, then renting is much better than buying, unless you are planning to hold onto the property and let it out.
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Let's not forget the inflation issues in 2 years, whereas a long-term lease can be price-fixed...
 
DJ... said:
Let's not forget the inflation issues in 2 years, whereas a long-term lease can be price-fixed...
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I was trying to keep it simplish.. :)

But yes, inflation at +- 6% has to be factored into your costs, and ROI on purchase etc etc...

Crap, I also forgot the 7% agents fee when he sells, so it would need to appreciate by 12%, so hold for maybe 4 years to break even.
 
DJ... said:
I doubt the OP has the capital for this hence my rental suggestion.
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Although I'm pretty sure every schmuck says this but will be throwing pretty hefty bonuses behind the purchase each year-
Purchase price be between 419 -480 - doesn't this waiver transfer fees?

Additionally think you guys got the wrong idea re: short term-

The idea will be to eventually give it to my mother but in the mean time live in it - and if it will see a profit after 3/4 years rent it out
 
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DrewChan said:
Although I'm pretty sure every schmuck says this but will be throwing pretty hefty bonuses behind the purchase each year-
Purchase price be between 419 -480 - doesn't this waiver transfer fees?
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It waives the Transfer duty, not the fees.

The R25k I posted is give or take what you will have to pay lawyers etc...
 
ToxicBunny said:
I was trying to keep it simplish.. :)

But yes, inflation at +- 6% has to be factored into your costs, and ROI on purchase etc etc...

Crap, I also forgot the 7% agents fee when he sells, so it would need to appreciate by 12%, so hold for maybe 4 years to break even.
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You're also forgetting CGT on sale...:D
 
DJ... said:
You're also forgetting CGT on sale...:D
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Why would he be paying CGT ?

1. Will the sale of my primary home be subject to CGT?

The first R1.5 million of gain or loss on disposal of a primary residence must be disregarded. This concession, known as the primary residence exclusion, means that most individuals will not be subject to CGT on the sale of their homes.

Thus if the primary residence is sold for a capital gain of R2 million, the first R1.5 million is excluded and the remaining R500 000 is subject to CGT.

You are also entitled to disregard any capital gain if the proceeds do not exceed R2 million. In such event you do not need to determine the base cost of the residence. This rule is not available under certain circumstances, for example, when you have not ordinarily resided in the residence throughout the period since 1 October 2001 or you have used part of it for trade purposes.
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