Property investment

D

DODGER523

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Hi all.

My wife and I are looking at investing in property. We currently only have one prop aka our home.... haha

We are looking at a property at the coast. I have registered a business((Pty) LTD) in our names.

Our idea is to purchase a property in the business name and let it out for an income. Keeping everything apart from our personal finances. ie all property expenses and incomes will go through that account.

Assuming the property deal is good, are we on the right track?

Regards
Roger
 
Do you think you'd make a good landlord? Honest question.

Asked myself that same question and found out that the answer was no. I didn't enjoy the headaches, the moral aspect nor the worrying that came with it.

That said there are some who make owning and renting property a profitable business. Are you one of those people?
 
Why the coast? If it's CT and surrounds I can understand, anywhere else seems daft.

If you have to invest in property, its probably a good idea to wait. The economy has not really recovered from Covid-19 yet, and house prices might fall some more.

Being a landlord can go either way. You either have great tenants and very little to worry about (my experience), or it's the start of a nightmare (everyone else's experience seemingly).

Personally would put my money in a million other investments.
 
If you dont stay within 50km... dont!

If you get agents, you will lose alot of your pie

Why a business? I have friends converting their trusts into their personal names.

Think also along with “sars”.

And lastly... ever been a landlord?
 
DODGER523 said:
Hi all.

My wife and I are looking at investing in property. We currently only have one prop aka our home.... haha

We are looking at a property at the coast. I have registered a business((Pty) LTD) in our names.

Our idea is to purchase a property in the business name and let it out for an income. Keeping everything apart from our personal finances. ie all property expenses and incomes will go through that account.

Assuming the property deal is good, are we on the right track?

Regards
Roger
Click to expand...
Good start point.

(you won't make money in the coast (we have those properties))

Buy flats, people are going to rent or sit in the streets they can't buy or afford a house rental.
 
I started with an investment house in 1988. There was a good tenant in place and net annual return was 9%. Since then I have acquired many more, plus flats and factory units. I share the factory units with a lawyer friend. These provide the best return

There have been good tenants and useless tenants, but no really bad ones. I really think you receive back from your tenant as much as you put in

My philosophy: Provide good value for money, a bit below market rate, no hidden extras, fix things that need doing quickly (but ignore unnecessary ones) and be an honest landlord. Tenants quickly appreciate this. Keep rent increases reasonable

Today’s market is skewed towards buyers with cash in hand. Today I went to look at a 14 unit factory park in Capricorn Park, one of Cape Town’s lesser known industrial areas. Last year this would have been offered for R40m, today’s figure is around R22m. However, only 3 of the units are let long term. Is this a worthwhile buy or not? Tricky indeed. At least the buildings are less than 5 years old and have all services including fibre and good security. I thought of offering new tenants 6 months free
 
DODGER523 said:
Yes idea was AirBnB/ holiday market.
Click to expand...
Unless the property is in an absolute prime area, you will struggle to cut even with Airbnb. There will be periods were it stands empty and you still have to pay the bond.

Full-time tenants are a hit and miss. We got some excellent ones with not a day's trouble in many years and some absolute bangers. I sold my last property recently and the tenant, on the surface a normal middle-class family, stole 2 deck chairs, an umbrella, and a huge 5m trampoline (ye)!

First, they said my moving company removed it when they moved in, and then when I threatened to go to the police it was magically found in a shed at their new place.

You have no idea what you are letting yourself in. For me, never again!
 
I stopped being employed six years ago and my primary income these days is from property.

I really have doubts whether I will seek to be employed ever again.
 
saturnz said:
I stopped being employed six years ago and my primary income these days is from property.

I really have doubts whether I will seek to be employed ever again.
Click to expand...

Nice what type of properties are you in?
 
r4nd0m said:
Do you think you'd make a good landlord? Honest question.

Asked myself that same question and found out that the answer was no. I didn't enjoy the headaches, the moral aspect nor the worrying that came with it.

That said there are some who make owning and renting property a profitable business. Are you one of those people?
Click to expand...

I ask this to anyone who tells me they are investing in a second property to rent out, why do you want to be a land lord? The number of people that say they aren't interested in being a land lord is comical. I am like you, I helped my ex wife manage her property out for a few years and the experience taught me that I am not land lord material.
 
We’ve done ok with our properties. Having a property manager has made it less of a headache, however, as mentioned, it eats a bit from the profits.
 
To be honest here, I manage all my properties myself. Friends who have agents doing their work ask me, why am I thriving so much ? In short, I want to do it. As a few mention on here, it aint for anyone, as time is money.

My motto in life related to investing, show me any investment where you get 100% back what you spend ? (as the only answer is property).

I can go so far in saying, if you are doing your SARS correctly, you can also see how SARS can help you (in the long term in showing losses).

Most people always just think BAD or "what IF this, or what if that".
 
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