Purchase a 3rd property

L

lagoaty

Member
Joined
Jul 29, 2014
Messages
28
Reaction score
1
Need adives
Im in my mid 30eold and want to purchase my 3rd property.

1 property I have an bond with an outstanding balance of R 44 000. When I applied for my bond I only used half the bond amount that was approved. The bond amount at the time (5years back was R700 000) current property valued at R 550 000

2 property I owe nothing on. (Inheritance) Valued at R1 100 000

3 property I want to purchase (still in the market) is between R1.5-R2.0mil

How,where and what will be the best way to get an bond amount of R1.5-2.0 approve?

I can easily generate rental income on it pay it off within 8-10years.

Do I apply for normal new home loan?
Apply for mortgage cover on my exiting asset where i owe nothing on?
Do both?
Wait for bank? Home loan consultant?

Please advise
 
lagoaty said:
Need adives
Im in my mid 30eold and want to purchase my 3rd property.

1 property I have an bond with an outstanding balance of R 44 000. When I applied for my bond I only used half the bond amount that was approved. The bond amount at the time (5years back was R700 000) current property valued at R 550 000

2 property I owe nothing on. (Inheritance) Valued at R1 100 000

3 property I want to purchase (still in the market) is between R1.5-R2.0mil

How,where and what will be the best way to get an bond amount of R1.5-2.0 approve?

I can easily generate rental income on it pay it off within 8-10years.

Do I apply for normal new home loan?
Apply for mortgage cover on my exiting asset where i owe nothing on?
Do both?
Wait for bank? Home loan consultant?

Please advise
Click to expand...


If you can use an existing bond, regear just!
 
Neuk_ said:
My first question, always, is to ask why you want to be a land lord?
Click to expand...
Easier money than working an 8-5 job for a boss. I do both work for a boss and do my rentals on the side. Save income and no gamble or risk.

Note my experience only.
 
I would sell property number 2, settle bond of property 1

leverage property 3

paid up properties used for rental is a waste of capital
 
In general, when considering you for a mortgage, a bank will not include your possible income from possible future tenants in their calculations. Future rental is considered merely hypothetical income, and as such that it would be reckless of them to lend you money based on dreams. They'll be looking for the usual things about affordability.

However, if you can demonstrate that you've been profitably renting for a while and you know what you're doing, that could tip an application in your favour. Prepare all the spreadsheets that show that you're level-headed and that the rentals are working within reasonable calculations, and try to get to see a bank mortgage expert, to ask for advice.
 
lagoaty said:
Easier money than working an 8-5 job for a boss. I do both work for a boss and do my rentals on the side. Save income and no gamble or risk.

Note my experience only.
Click to expand...

That is the important part and I am glad to hear it works for some, I decided a very long time ago I have zero interest in being a land lord based on personal and others experiences.
 
zerocool2009 said:
That is because if you make profits its get added to your salary bracket !

Learn the system ! (It is VERY much rewarding)
Click to expand...

Interestingly, in the US one can claim 1/27th of the purchase price of the property as capital expenditure each year, which means that it can take years before you technically show a profit. This is great if you're in a high income tax bracket, since this avoids adding rental income to your taxable income for a while.
 
The best snd honest advice I can give, if its your 2nd, 5th or 10th property, ask yourself if it stands empty, can you carry it for 12 months, 24 months worst case scenario

I always ask myself that before buying and expanding my portfolio
 
Neuk_ said:
That is the important part and I am glad to hear it works for some, I decided a very long time ago I have zero interest in being a land lord based on personal and others experiences.
Click to expand...
Being a landlord is a schlep, but property is pretty much the only investment where leverage is an option.
 
Neuk_ said:
That is the important part and I am glad to hear it works for some, I decided a very long time ago I have zero interest in being a land lord based on personal and others experiences.
Click to expand...

As the saying goes... nothing comes for free!

I read a book about investing, and especially property! Picture you are the ceo of your own firm, or the head of your own investment... thats what property investing is all about

First when you own 1, then 2, and serious... going past 5! It must be fun too! If you dont have time either, dont do it!

Its the most rewarding thing I ever started, and it pays off as in an avalanche (first a small snowball, then getting bigger and bigger with time)!

Not every story is good or great! Every person who envisions it have different experiences, may it be good or bad.

I have 3 people at my work also doing the property thing. Some own now 3 places. Its awesome to see someone looking past all the negative stuff, and take the leap and buy, fix up, source tenants and enjoy to be a landlord! (Again, this ain’t for anyone who doesn’t want to fix stuff, listen to issues, but smile to the bank). The good comes with the bad!
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X