Landlord Tips & Tricks

zerocool2009 said:
Why would it confuse you to lose money ?

If you make a loss, the losses are subtracted from your overall income, as it all in my personal name.

So if I make a lose, I have less to pay in, and my losses bring my overall profits down.

The point I am trying to make : I try to make my tax bracket as small (lower) as possible.
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The goal is to make an accounting loss not a real lose. You increase your accounting expenses and lower your accounting revenue but still try maximize actual revenue.

Also you factor in the refund from SARS when calculating the true cost of something.

Anyway would need proper figures to engage further but unless I am missing something sounds like you are just purposefully losing actual (not accounting) money to get a bigger refund. Why not just allow your tenant's to stay for free in that case your tax bracket still be lower.
 
zerocool2009 said:
Why not, as SARS see it as a loss. The result, I am in a lower tax bracket.

I must say, my way of thinking is working like a charm. All I want i happy tenants (that's the bottom line)
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The more tax you pay, the more money you get. You obsession with making a loss so you pay SARS less is actually making you less money.
 
airborne said:
Stop feeding the troll..
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No @zerocool2009 isn't trolling. I believe his wisdom on many things in the past (OTP thread is one for instance). I'm just trying to understand the logic of this. Of course a poorly treated tenant will result in them moving, and those months unrented take years to recover the lost growth from. But this doesn't need to be a race to the bottom. Great service and mutual respect trumps most 'savings'. One could easily do a 5 year contract, and play by the rules and keep their deposit safe and growing too.
 
Is point 1.12 normal? Its an annual increase towards the current deposit.
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The_Mowgs said:
Is point 1.12 normal? Its an annual increase towards the current deposit.
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Well I suppose if they are going to increase the rent then the deposit needs to increase because its normally linked to the rental.
But damn that's an aggressive yearly increase, 5yrs compounded at the same rate(8%) annually that will be a R22k rental in 5yrs.
 
Thanks guys, I haven't rented in 17 years so it just seemed weird to increase the deposit amount yearly.
 
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