Home Ownership

You need to be paying 150% of the required monthly instalment to make it at all feasible.

So if you dump the rental cash into the bond for that kind of property value you should be paying it off in about 7-10 years without needing to put any extra money of your own into it.
 
SauRoNZA said:
You need to be paying 150% of the required monthly instalment to make it at all feasible.

So if you dump the rental cash into the bond for that kind of property value you should be paying it off in about 7-10 years without needing to put any extra money of your own into it.
Click to expand...

Lost you somewhere.
 
Think he meant that if your bond is R4000, if you pay R6000 it should take your terms down to 7-10 years
 
SauRoNZA said:
You need to be paying 150% of the required monthly instalment to make it at all feasible.

So if you dump the rental cash into the bond for that kind of property value you should be paying it off in about 7-10 years without needing to put any extra money of your own into it.
Click to expand...

Have definitely lost you on this one...
 
Pho3nix said:
Think he meant that if your bond is R4000, if you pay R6000 it should take your terms down to 7-10 years
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When I did calculations, I had to pay double the mortgage payments in order to reduce the term to 7 years, so not sure how 150% can also reduce to 7 years.
 
efitol said:
When I did calculations, I had to pay double the mortgage payments in order to reduce the term to 7 years, so not sure how 150% can also reduce to 7 years.
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Note, he did say 7 TO 10. Lumpsums from bonuses will obviously help shorten the 10 to closer to 7..
 
That's odd, I was just thinking about this.

Currently, between the SO and I, we're paying R6k on rent for a nice unit in a complex. I will be paying off the car at some stage, so this will free up an extra 2k a month from my side.

I actually wanted to buy a place for around 550k to 600k - then, rent it out for maybe 6 to 7 years - then, sell it and buy a bigger property for the SO and I to stay in.

I think that would be a better investment?

Otherwise a new car - which I will always make a huge loss on!

Is it fees able to do it like this?

Maybe we stay in the until ourselves for the first few years - then rent out after that?
 
Tander said:
That's odd, I was just thinking about this.
Currently, between the SO and I, we're paying R6k on rent for a nice unit in a complex. I will be paying off the car at some stage, so this will free up an extra 2k a month from my side.
I actually wanted to buy a place for around 550k to 600k - then, rent it out for maybe 6 to 7 years - then, sell it and buy a bigger property for the SO and I to stay in.
Click to expand...

Let me get this straight?
So you'll have R2000 per month to purchase a R550K to R600K property?
Or are you going to live in your car and combine the R6000 rent with the extra R2000 to purchase property?

Maybe we stay in the until ourselves for the first few years - then rent out after that?
Click to expand...

That makes more sense. You'll need somewhere to stay if you stop renting.
The buy-to-let scenario is not without pitfalls:
1. You hope to get a nice tenant who pays on time and in full and doesn't destroy the property. This is usually the deal breaker.
2. Your investment is not very liquid. It can take months to sell so you better not need cash in a hurry.
 
Paul_S said:
Let me get this straight?
So you'll have R2000 per month to purchase a R550K to R600K property?
Or are you going to live in your car and combine the R6000 rent with the extra R2000 to purchase property?
Click to expand...


Sorry, i wasn't clear.

In the buy-to-let scenario a place that costs 500k or so might have a bond of R4k a month. However, then there are the fees and so fourth, so in total, we are looking at R6k a month. I would charge the tenant between R4000 and R4500 a month to stay at the property, then I will use the money that I am not paying on the car anymore, to cover the additional expenses.

However, as I stated in the last part - I think for me, personally, staying in the place for a few years, then renting it + selling it later may be a better option.
 
Can you guys please show me these properties that are between 500 - 600k? It must be tiny tiny apartments?
 
Tander said:
Sorry, i wasn't clear.

In the buy-to-let scenario a place that costs 500k or so might have a bond of R4k a month. However, then there are the fees and so fourth, so in total, we are looking at R6k a month. I would charge the tenant between R4000 and R4500 a month to stay at the property, then I will use the money that I am not paying on the car anymore, to cover the additional expenses.

However, as I stated in the last part - I think for me, personally, staying in the place for a few years, then renting it + selling it later may be a better option.
Click to expand...

The other thing that staying in a place will give you is an insight into how it functions as a livable space, and then it can give you ideas how to improve the property to make you investment worth more.
 
Fafa said:
Can you guys please show me these properties that are between 500 - 600k? It must be tiny tiny apartments?
Click to expand...

Depends where you buy.

I am contemplating buying a townhouse in a part of town that is acceptable but not great.. I should be able to source something in the R550k range with 2bedrooms and a garden.. be able to rent it out for R5k and be most ok on the cash flow side.
 
ToxicBunny said:
The other thing that staying in a place will give you is an insight into how it functions as a livable space, and then it can give you ideas how to improve the property to make you investment worth more.
Click to expand...

You make a good point there.

I think once the car is paid off, I will definitely look into buying a property.
 
ToxicBunny said:
The other thing that staying in a place will give you is an insight into how it functions as a livable space, and then it can give you ideas how to improve the property to make you investment worth more.
Click to expand...

Good point, wasn't planning on living in the place but will def consider it now
 
ToxicBunny said:
Depends where you buy.

I am contemplating buying a townhouse in a part of town that is acceptable but not great.. I should be able to source something in the R550k range with 2bedrooms and a garden.. be able to rent it out for R5k and be most ok on the cash flow side.
Click to expand...

Wanna share which parts of town these are ? :)
 
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