Property and moving forward financially

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DrewChan

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What does one do who does not earn quite enough to buy an apartment in a decent area,

I earn enough to buy something small in a lesser area, however decent apartments cost R900k and up, and I do not earn the needed 30 odd thousand in order to purchase one.

Do I drop my standards and search in a lesser area, do I save and wait till my salary goes up suffieicently?


I can currently put away around 7k a month into a savings account (after rent and expenses)


Anyone willing to offer some advice
 
Why don't you invest in shares, unit trusts or ETFs?

Investing in property is not the only way and depending on circumstances, might not even be the optimal way.

If you are in to property specifically, you can invest in that sector of the market (though diversification is always a good idea).

You'll need to do some research and learning, but any form of investing is going to take discipline and patience. Time is your friend and even better if you start young.

Take a look at DBX ETFs (offshore investing), SATRIX, Coronation, Allan Gray and if you feel you can make good purchasing decisions, EasyEquities.

Like I said, much research and education is needed to pick the right options.
 
Well this question wasn't poised at investing directly but also have stability and a place to stay without renting. However you have given good advice, thanks for taking the time :)
 
DrewChan said:
What does one do who does not earn quite enough to buy an apartment in a decent area,

I earn enough to buy something small in a lesser area, however decent apartments cost R900k and up, and I do not earn the needed 30 odd thousand in order to purchase one.

Do I drop my standards and search in a lesser area, do I save and wait till my salary goes up suffieicently?


I can currently put away around 7k a month into a savings account (after rent and expenses)


Anyone willing to offer some advice
Click to expand...

My 2c - Buy something cheaper, move into the place and pump as much of your extra cash in as possible to pay it off quickly.

Just remember that home ownership comes with many extra costs that you don't usually see as a tenant. Things like rates, levies and life insurance (a requirement for the value of the bond) etc.
 
TehStranger said:
My 2c - Buy something cheaper, move into the place and pump as much of your extra cash in as possible to pay it off quickly.

Just remember that home ownership comes with many extra costs that you don't usually see as a tenant. Things like rates, levies and life insurance (a requirement for the value of the bond) etc.
Click to expand...
+1. Buy the best that you can afford in a nice area and pay as much as possible.
 
Its Cape Town, small in a decent area is 800k plus, can't afford.... Well can afford, bank doesn't allow bonds above 30%
 
You have to live in the house you buy. Don't buy in an area you don't like just because it's affordable. Rather rent and save up for a deposit until you can afford to buy where you will be comfortable.
 
If you buy it as a rental unit you can include the rental income in your allowable puchace figure calculation. This may give you enough to buy a nice place rent it out for a year or two while your salary increases and when you can afford it you move in there yourself.

Personally I originally bought a tiny 1 bedroom place that I rented out while staying with my parents and payed as much as I could in addition to the rental. After a few years I sold that and bought a piece of land and then owner built a house.

There are many ways to go about it the important bit is that you have a plan and you are actively working towards it.
 
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