Housing investments

[Pitbull]

@OP, If you buy the right property it can be worth your while. I bought a house for R465k in my area, spending about R10-R15k fixing little things and will get around R4500 rent plus tenant pays the rates and water account. thats about a 11% return. then I can spend another R30k doing the outbuilding up which is about 70sq and I can get another R3k for that. so for an investment of R510k which if i work out correctly is about 18% return p.a. if you go with a company that guarantees payment of rental, rent master charges 5,5 percent so its about R5k a year for that so my return drops to just under 17% which is really not bad. My advice is try and buy a mmuch cheaper property than R1mil as you are probably going to get a higher return on a cheaper house.

Will try and look around a bit. I transferred the funds into my credit card for now. So getting a little bit of a return on that for now.

For Allan Gray, go direct to them. DO NOT go through a consultant or Broker, you will Pay.


All the information is on AG site and you can do everything online.

The only time that I have contact with AG people is at their annual feedback seminars, which coincidently is this evening in Pretoria.

Solid advice, will speak to this guy first then feedback.

 

[Pitbull]

You are quite the clever one, spending 150k on a car that goes nowhere and a 100k on a house for investment purposes, makes sense.

Still sour are we. Not everyone can be equal Saturnz. You have the HAVEs and the HAVE NOTs.

Maybe I need to tell you how it works:
If you have X amount of time and keep putting money (Z) into something you end up spending Y. So (X) x (Z) = (Y)
X being disposable income (Something I'm sure you don't have) it's money you/I use as entertainment funds or savings. Spending around R 4 - 6k a month (X) over a period of about 24 months - 2 years (Z) will give you (Y) R 150k give or take. And I sold that car back in 2008 for R 70k. At no point was it ever an investment. It was money I had to spent. I never asked you or anyone for a cent did I?

So when you're a laaitjie of 22 around there, your priorities are different. Most use X for buying flashy cars, some use it to entertain hookers and what not. At that stage in my life spent my disposable income on a car I loved and gave me lots and lots of pleasure.

I'm at a point in my life now where I'm slightly more mature and get my Speed and kicks from my bike. So as of late I have been putting my X money in a savings Pocket on my FNB account. This amount has now grown to such an extent that I feel I can invest it and make it work for itself.

Now let the adults talk...

 

[TJ99]

@OP, If you buy the right property it can be worth your while. I bought a house for R465k in my area, spending about R10-R15k fixing little things and will get around R4500 rent plus tenant pays the rates and water account. thats about a 11% return. then I can spend another R30k doing the outbuilding up which is about 70sq and I can get another R3k for that. so for an investment of R510k which if i work out correctly is about 18% return p.a

Until SARS finds out you haven't paid any tax on that in which case, prepare your anus.

 

[phiber]

I think to invest in property you should try to:

1) Make sure you can comfortably cover the entire bond, levies and maintenance on your own salary
2) Buy a brand new unit from the developer early in the complex phase (bigger discounts for the first few units)
3) Realise it is a long term source of inflation hedged rental income for your retirement and not a short term <7 year profit generator
4) Write off as many expenses from your taxable income and don't buy it cash.
5) Not be your only investment. Have others like shares, unit trusts and ETF's.

Disagree on point 2, older properties are often 20% cheaper than a new place - and any maintenance is tax deductible if you are renting.

 

[mountainboy]

I've done very well with property over the last 3 years but it took serious research and lots of work

New primary home bought in 2012 for R1mil (great area, old house). Today there are no houses in that area under R2MIL and our agent valued the house last week at R1,65 MIL (just had the roof painted and new garage doors installed, nothing else) In addition, rental estimate is R12k pm, our bond is currently R6500. We currently having an architect draw some plans for renovations and I reckon we will double what we put in for this reno

Previous primary home in Bothasig has bond of R4800 and rental is R7200 (small house with easy maintenance). Prices in Bothasig has just became stupid for what you get in my opinion but hey , it means my property is valued at R950k (purchased for R690k) and a very low interest rate. I keep the bond at it's max and withdraw anything I can as interest is tax deductible (I'm at 40% tax bracket)

Other Investment properties:
2013 - Bought 2 flats from an Insolvent estate via auction for R360k and R450k, with market value at R550k and R650k respectively. Rental at R4800 and R5300 pm, with bonds of R2900 and R3400. This was a riskier purchase as the block was not looking at it's best but the area looked solid with lots of houses and not just blocks. Just received a letter from managing agent that full renovation of the this block (only 13 units) will begin in 2 weeks time. Pretty chuffed with timing of the purchase

2012 - ABSA repo house purchased for R1MIL, market value R1,6MIL. Bond of R7100, rental of R7200 but still have pay rates and taxes and also spent R40K fixing up the place before rental. This is house is in Knysna, Heuwelkruin, so market not too hot but I'm patient and TBH, we have not decided if we'll flip in 5 yrs, rent (long term), holiday rental (possibility). Garden route prices have slowly crept up, and Heuwelkruin is a great area in Knysna.

2013 - Distressed sale - 2 bed flat in De Tiger (The Islands) purchased for R450K, current value R680k. Bond R3900, rental R4800 with a rental demand that is just insane for this area

All investment properties bought in a trust. I have a very jacked up accountant and have not paid any income tax on anything thus far. Conduit principles, flow through, interest free loans between myself and trust etc are all legal mechanisms he uses to ensure the bottom line is never positive.

I've not purchased any properties this year since the bargains are very scarce but I'm well chuffed with the last 3 years and do believe that Cape Town property is solid as do not foresee demand letting up soon and visiting other provinces, I can see that the Western Cape is governed so much better

That said, not all my investments are in property. As I'm in the high tax bracket, anything to reduce my tax is explored to the max, with lots of funds going into retirement structures and some into the JSE. Want to increase my exposure in the market, I'm currently looking at ETF's

 

[saturnz]

Still sour are we. Not everyone can be equal Saturnz. You have the HAVEs and the HAVE NOTs.

Maybe I need to tell you how it works:
If you have X amount of time and keep putting money (Z) into something you end up spending Y. So (X) x (Z) = (Y)
X being disposable income (Something I'm sure you don't have) it's money you/I use as entertainment funds or savings. Spending around R 4 - 6k a month (X) over a period of about 24 months - 2 years (Z) will give you (Y) R 150k give or take. And I sold that car back in 2008 for R 70k. At no point was it ever an investment. It was money I had to spent. I never asked you or anyone for a cent did I?

So when you're a laaitjie of 22 around there, your priorities are different. Most use X for buying flashy cars, some use it to entertain hookers and what not. At that stage in my life spent my disposable income on a car I loved and gave me lots and lots of pleasure.

I'm at a point in my life now where I'm slightly more mature and get my Speed and kicks from my bike. So as of late I have been putting my X money in a savings Pocket on my FNB account. This amount has now grown to such an extent that I feel I can invest it and make it work for itself.

Now let the adults talk...

*yawn*


sorry I didn't actually read that

 

[Not_original]

Will try and look around a bit. I transferred the funds into my credit card for now. So getting a little bit of a return on that for now.



Solid advice, will speak to this guy first then feedback.

Interest on a positive cc is normally very little sometimes even zero