Investments

I bought a flat in Centurion when I started working a couple of years ago. If I sell it today I'll get about R500k out, so my opportunity cost should be calculated on that figure. At present it gives me net rental income of around R33k per year, which is a shade over 6.5%. Next year that grows to over R40k (8%). Actual property values in that suburb are growing by 8-10% at present. If I add that in it becomes (conservatively) 15% per year growth. That's not exactly bitcoin, but it's not terrible either.

Also, by the time my kids go to 'varsity I'll have a paid off flat generating about R8000 pm (in current terms) to help fund them. If I want, I could probably look to add a second flat in a year or so when the excess from the first flat becomes sufficient to cover the rental shortfall on a second flat. I know (and sort-of understand) some people are an anti buy-to-rent, but with some good thought it can work out well.
 
Speedster said:
I bought a flat in Centurion when I started working a couple of years ago. If I sell it today I'll get about R500k out, so my opportunity cost should be calculated on that figure. At present it gives me net rental income of around R33k per year, which is a shade over 6.5%. Next year that grows to over R40k (8%). Actual property values in that suburb are growing by 8-10% at present. If I add that in it becomes (conservatively) 15% per year growth. That's not exactly bitcoin, but it's not terrible either.

Also, by the time my kids go to 'varsity I'll have a paid off flat generating about R8000 pm (in current terms) to help fund them. If I want, I could probably look to add a second flat in a year or so when the excess from the first flat becomes sufficient to cover the rental shortfall on a second flat. I know (and sort-of understand) some people are an anti buy-to-rent, but with some good thought it can work out well.
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As I have said a number of times - although property rentals (excluding capital growth) may not outperform other asset derivatives, the difference comes in when one needs to live of your investments. I mean, why are we making investments if not for the future?

So, when you need to draw on your investments to live (i.e. retired), then you generally will end up depleting your capital/investment. Maybe even end up with no money left.

Whereas with an investment property, you have a steady, and increasing, income stream.
 
Speedster said:
I know (and sort-of understand) some people are an anti buy-to-rent, but with some good thought it can work out well.
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yup you can't just jump in, most of the failures are due more to errors in (or lack of ) judgement than a problem with the actual model
 
Splinter said:
As I have said a number of times - although property rentals (excluding capital growth) may not outperform other asset derivatives, the difference comes in when one needs to live of your investments. I mean, why are we making investments if not for the future?

So, when you need to draw on your investments to live (i.e. retired), then you generally will end up depleting your capital/investment. Maybe even end up with no money left.

Whereas with an investment property, you have a steady, and increasing, income stream.
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Only if you have good tenants.
 
Now if it was me, I would invest in Feeder Funds index unit trusts in overseas indexes. Once I have a nice big sum I would take it directly overseas.
 
These are the Four Seasons units I was talking about. I received in May this year, so I'm guessing they are all sold already, but maybe there are some resales.

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This serves as proof as to how affordable it is to purchase property in the CBD, and if you make a little effort you can even buy property for really cheap
 
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Pakka said:
How do you find 'tenants' for the parking bays?
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Very easily. They basically come to you.

Businesses, Residential there’s a massive shortage so it’s not hard to fill them up if priced right.
 
DrewChan said:
There are alternative motives to the property (aging family), That being said, where do I view these parking bays for sale :D

This is probably discussed all over this forum, but where else could I shove 20k per month going forward? Right now I am just plopping into an fnb savings account at 5% interest. Looking for short/medium term.
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I've made a little over 100% return over the space of 2-3 months on BitCoin earlier this year then sold (Should have held).

I bought back in on BitCoin and Ethereum last week. They are both sitting at around 30% return each already if I sold now :eek:

Just wish I had 1mil to buy with instead of my measly 15k (Which is now at almost 40k). With enough money it could be instant retirement haha.

But of course these are not considered "investments" and they're very risky.

On the JSE my Steinhoff shares are sitting at -37% :( :cry: Despite good performance etc... there's fraud allegations with their CEO. And by experience, even if these allegations are overturned it takes a very long time for the share to recover. I don't miss the money so I'm just holding for now. I've made a few small returns trading others though but sold out to help out with new furniture and house move.

Just sharing my personal endeavors if it helps, so take it for what its worth, but as above you could consider putting that money into crypto or JSE depending on your appetite for risk. At least JSE gets you growth and divi potential, but you have to buy and spread enough to offset fees/loss (Use your 20k pm to buy into different baskets). My single share above doesn't help me at all so looking to buy back in what I sold out earlier this year.

I think personally I'm going to settle on the JSE as a long term (With divi's and growth) and trade risky on crypto in the short term, so I will be splitting my savings accordingly (Ideally there should be hardly any money in my bank account above maybe a month or two salary worth). I have no intention getting into property though and I won't touch a savings account :)
 
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Bobbin said:
I've made a little over 100% return over the space of 2-3 months on BitCoin earlier this year then sold (Should have held).

I bought back in on BitCoin and Ethereum last week. They are both sitting at around 30% return each already if I sold now :eek:

Just wish I had 1mil to buy with instead of my measly 15k (Which is now at almost 40k). With enough money it could be instant retirement haha.

But of course these are not considered "investments" and they're very risky.

On the JSE my Steinhoff shares are sitting at -37% :( :cry: Despite good performance etc... there's fraud allegations with their CEO. And by experience, even if these allegations are overturned it takes a very long time for the share to recover. I don't miss the money so I'm just holding for now. I've made a few small returns trading others though but sold out to help out with new furniture and house move.

Just sharing my personal endeavors if it helps, so take it for what its worth, but as above you could consider putting that money into crypto or JSE depending on your appetite for risk. At least JSE gets you growth and divi potential, but you have to buy and spread enough to offset fees/loss (Use your 20k pm to buy into different baskets). My single share above doesn't help me at all so looking to buy back in what I sold out earlier this year.

I think personally I'm going to settle on the JSE as a long term (With divi's and growth) and trade risky on crypto in the short term, so I will be splitting my savings accordingly (Ideally there should be hardly any money in my bank account above maybe a month or two salary worth). I have no intention getting into property though and I won't touch a savings account :)
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This is almost what I am doing as well.
Monthly debit order to buy shares and I will increase that debit order annually. Bought some coins on ICO(this is a one time thing though) which I will hold long term and see what they do.

The SA Property market is in a bit of a slump(with the exception of CT) and so I do not think listed property shares will be to good in the short term. Long term it could be a good investment. If you intend to invest in Local property then I would suggest buying listed property stocks while the prop market is in a slump.

Also, looking at some forecasts for where the Rand is going in the next 3 years, I would say getting into the foreign stock market would be a good idea.

If all this doom and gloom realizes with junk and recession hitting SA then I would personally not buy in CT. The property is way over priced and in tough economic times you are going to start seeing people default on their rent. Rent increases will need to come down as the middle class are going to be hit with interest rates on debt, taxes, vat, fuel, inflation and most recently the talks of water levies.

ps. This is just my 2c
 
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just as an aside

Last Friday I advertised my bay for January 2018 at R1200pm and this morning a tenant signed the lease and paid the first month's rent and deposit.
 
SauRoNZA said:
Very easily. They basically come to you.

Businesses, Residential there’s a massive shortage so it’s not hard to fill them up if priced right.
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Thanks. Not in CT so was wondering how that would work
 
Pakka said:
Thanks. Not in CT so was wondering how that would work
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that's the beauty of storage and parking units, you can transact remotely

if you are purchasing one for the first time or have no previous experience then it may help to view a few to get a feel for them, but other than that theres no real effort involved.

I didn't even meet my tenant, we just chatted over whatsapp, I sent him the lease and then he deposited the money. My previous tenant renewed twice, and I only met him once in that 3 year period.
 
saturnz said:
just as an aside

Last Friday I advertised my bay for January 2018 at R1200pm and this morning a tenant signed the lease and paid the first month's rent and deposit.
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This is pretty awesome. Small outlay, steady income. I should think about that maybe
 
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