Purchase a 3rd property

[saturnz]

I don't know what you people do, but I at most spend an hour a month applying my mind to my properties.

 

[cguy]

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!

One can always hire a property manager. It costs of course, but the math can still work. I spend close to zero time managing it.

 

[lagoaty]

Ok, my first question, why so expensive to rent out?

Your risk is higher at past R1.5kk

Holiday homes generate more income than monthly rent i know of the risk.

 

[lagoaty]

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

Why?

 

[zerocool2009]

Why?

My personal reason was, I want to rent for free from the bank (lol).

Your main priority would be to live in something paid off

 

[Gozado]

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

@Iagoaty asked why @saturnz recommended this:

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

My personal reason was, I want to rent for free from the bank (lol).

Your main priority would be to live in something paid off

But Iagoaty already has that situation, as he can choose to live in property 2, which is already completely paid up.

@saturnz and @zerocool2009, could you explain your thinking a bit more, please, specifically given that he already has a property on which he owes nothing?

 

[saturnz]

But Iagoaty already has that situation, as he can choose to live in property 2, which is already completely paid up.

which property he chooses is rather immaterial the point

-no debt for place of residence
-debt for place to let

 

[Gozado]

Mmmm... I must be missing something that you can see, which gave you reason to give him the advice you did.