Mila
Honorary Master
http://fin24.com/articles/default/d...1518-2386-2401_2580984&IsColumnistStory=False
Same reason for land demands. Everyone wants.
Same reason for land demands. Everyone wants.
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SA 'obsessed' about property
- Thread starter Mila
- Start date
Gawain
Expert Member
Sad but true but as stated leave farm land alone and sacrifice a football stadium or 2 and give the people a piece of land and the means to build a house.
Low income/no income + house payments = disaster and sends ripples through the whole economy
Low income/no income + house payments = disaster and sends ripples through the whole economy
davemc
Executive Member
What a bullsheet article.
In other countries, there is no land left, every little bit has been bought up and you have no choice but to rent.
In other countries, there is no land left, every little bit has been bought up and you have no choice but to rent.
genetic
Honorary Master
I can understand that everyone wants a house. Paying off a bond is better than renting a house. Your money is going into an investment rather than into oblivion.
A house is not really an investment if you intend to live in it but it's still better than buying a car.
genetic
Honorary Master
Not an investment? Why not? Besides property value, you can generate rental income.
Mila
Honorary Master
I do not see how he got to renting is cheaper and its a bad thing.. was that not how it was suppose to work?
I think it might be that buying and getting a house is too easy here. And the asset is not taken away quick enough if you default. My neighbours has not been paying the house or the waterand electrisity for 13 months. But nothing is done cause the amount the owner owes will never be recovered from selling it again. He owns the house for 15 months. So how the hell did the bank sell him the house
The bank queried his application when he was buying it but still they sold him the house. here The guavament owns the land and if they don't they try to take it from farmers. And give more to more people. And that makes people want things. I also want a piece of land with a house. why can 60% of the country get it free and not me?
Australia does not have a land problem I think 95% is still open and the USA have nothing to complain about. I have not heard about this "I want a house problem in angola, namibia or botswana. They also seems to have enough left..
Our market is fut. The prizes for houses is stupid and people try to rent it out for the same amount as they bought it for, so it's the same price to buy as to rent.
( that is what we got when we were looking at renting the last few months)
If it was not about " I want a house and a piece of ground" why are the gauvament not building big blocks of flats like in Moz and make it ...If you earn more than x you get booted out or you can start renting from them then when you earn more you can go into the property market?
and building low cost housing and renting it out? that would make a nice income for them too.
So when you are off the grant you can rent from them and they can make more money to build more houses to rent to more people.... and more flats of course.
What happend to renting your first apartment. It's to expensive. You can just as well buy it. And buying a house was so easy up until two years ago. Even now banks are encouraged to help PD people and The Sex Wale made grants available for those people to buy. Why buy not rent what is wrong with renting? Here poor people are encouraged to buy. I wonder if this is to make then pay more when they default and the banks score or just bad ecconomics? I say bad ecconomics.
The brits have a problem I have to say... but I gave them the solution. Nobody will mind if they take Zim back...:twisted: I promise ...
Unless you sub-let, which is against the rules of many body corps, it is difficult to get rental income while you live in the place.
I have long felt the idea of a housing shortage to be a misnomer. My gardener received an rdp house in jhb. During holidays he tells me how he is going home, to his family home on a farm in Limpopo. In essence he has 2 homes..whilst i have 1.
When 1 relocates for work purposes, what entitles you to be given a house at your destination merely because you choose not to stay on in your family home?
When 1 relocates for work purposes, what entitles you to be given a house at your destination merely because you choose not to stay on in your family home?
Mila
Honorary Master
People tend to stuff up houses these days. We looked at several places that were "investment" properties and since our squatter law and things like that people are selling these.
If you did not buy a house several years ago and can rent it out for a good price and have decent renters it's a high risk game. Now you also have the second property taxes. and and and. Nope not such a good idea lately. Yes if you buy up stuffed properties fix it and sell it for R 50 000 profit and move on but keeping it is not such a good idea.
If you buy a house now and rent it out for what you should be paying on the bond people could rather buy a house. Banks are granting 100% loans again.
I sometimes wonder what people do that are 18 and entering the market for rent spaces.
Mila
Honorary Master
Playing with the lions balls now. I asked the same thing and was called selfish. and a racist.
And when he gets married ( how many times over) if his wife has an RDP house they keep those too. (A co worker has 3 wifes and 5 houses) the one in Venda he received money for to build just after 1994. and a RDP house here in JHb.
I asked him (after the one in venda was cleaned out by affirmative shoppers) why does he not sell they house and buy a bigger one here. He just said cause he got them all for free why would he now want to buy something? He told me how easy it was to get on a list for another house compliments of the id vending machines around the country. He said that if they do not take the houses the guavament builds them for foreigners with the same contacts in any case.
diabolus
Executive Member
Ok, this article seems to say one thing and then goes into a whole different tangent. What people is this article talking about? People that buy property-to-rent [i.e. not living in it themselves] vs. property-to-live-in-and-retire-with ?
That's totally different types of people. It's never ever bad to buy property-to-live-in , since by the time you retire you hopefully don't need to pay rent OR mortgage and can actually survive on your pension. If you buy a house to live in, you don't freaking care about the "return on investment" in 5-years, you care about 30 years!
Now property-to-rent , that's a totally different kind of game, and yes in that area i believe there's alot of obsession going on with everyone and their dog owning some little flat somewhere which they rent out.
So dunno, the article seem to be a little misleading. Just because people overseas don't own their houses doesn't mean it's a good thing, it just means they're gonna live in a hole and struggle when they retire. If you don't ACTIVELY re-invest you money [as in SAVINGS] you are wasting your time and since it's alot more difficult to do this [requiring ALOT of financial savvy/research/discipline] than simply buying a house , i would kinda think it's a no brainer to just get the house.
That's totally different types of people. It's never ever bad to buy property-to-live-in , since by the time you retire you hopefully don't need to pay rent OR mortgage and can actually survive on your pension. If you buy a house to live in, you don't freaking care about the "return on investment" in 5-years, you care about 30 years!
Now property-to-rent , that's a totally different kind of game, and yes in that area i believe there's alot of obsession going on with everyone and their dog owning some little flat somewhere which they rent out.
So dunno, the article seem to be a little misleading. Just because people overseas don't own their houses doesn't mean it's a good thing, it just means they're gonna live in a hole and struggle when they retire. If you don't ACTIVELY re-invest you money [as in SAVINGS] you are wasting your time and since it's alot more difficult to do this [requiring ALOT of financial savvy/research/discipline] than simply buying a house , i would kinda think it's a no brainer to just get the house.
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I'd call the fact that when you sell your house, even after living in it, and you get back 10 times what you spent on it, an investment, surely?
10 times? Does that include the interest on the bond, maintenance, rates & taxes and whatever other fees goes into it.
ToxicBunny
Oi! Leave me out of this...
Are you factoring in inflation into the difference between purchase and selling price...
And all the money you've spent on maintaining the house?
Usually a home to live in is NOT an investment, its a liability... BUT it its a more financially sound liability (if that makes sense) than renting... at least in the long term.
And all the money you've spent on maintaining the house?
Usually a home to live in is NOT an investment, its a liability... BUT it its a more financially sound liability (if that makes sense) than renting... at least in the long term.
Thx, forgot about that one.
Mila
Honorary Master
:wtf:
Transfer and attorneys fees. Add 10 % to your purchase price. So at the current rate of growth you will only see a break even on you investment after 10 years about. (Prime is +/- 9% minus 3% growth plus 10% you had to pay on your extras).. That does not include moving there, water and electrisity. Then lets not start on levies
+10
Only if you have it for 15 - 10 years. Or if you were dammm lucky.
And remember capital gains if you make 10 what you bought it for SARS will be smiling all the way.
:wtf:
Transfer and attorneys fees. Add 10 % to your purchase price. So at the current rate of growth you will only see a break even on you investment after 10 years about. (Prime is +/- 9% minus 3% growth plus 10% you had to pay on your extras).. That does not include moving there, water and electrisity. Then lets not start on levies
+10
Only if you have it for 15 - 10 years. Or if you were dammm lucky.
And remember capital gains if you make 10 what you bought it for SARS will be smiling all the way.
If you buy to let then the tenant pays off your bond (or part thereof). How is having someone servicing your debt a bad thing? The best part is that you will most probably sell it at a profit later.
However buying a house to live in is different. You pay the bond and in case you sell at a profit you still have to find somewhere to live and that means spending your profits on your next purchase.
Mila
Honorary Master
Yes but why would I pay your debt if I can buy a place of my own? We looked into renting until finding the right property to buy but you do not save anything. So the atvantage of renting is nothing. If you can afford a R6000 rental agreement you can afford buying a R600 000 house and you are not paying of someone elses bond? I see ABSA is granting 110% again. Most people do a credit check on renters. And most places asks up to 3 months or deposit in advance.. It's crazy I tell you
Yes there are still people who bought way back and is renting out at a reasonable price. But not that much.
With Property taxes screwing you on your second property SARS seeing rent as a extra income. And even if you still do it and it's worthwhile, Renters stuff up places these days. To find decent renters are like looking for chicken teeth. You are not allowed to evict people without them having a new place to stay... Very sticky laws regarding this these days.
BF lost R74 000 on legal fees on the house we sold now due to these laws. And when the renters left the broke every tile in the house ( hammer
). Laws protecting people like these make letting a risky game.
a
Whatever you do you must never let your place to foreign nationals...especially from Africa. Those guys get trash your place real bad. The worst part is that they then bugger off out of the country and you are left to repair the damage. In that case buying to let becomes a very risky business. But my experience has taught me to let only to people I know personally, like relatives. I don't get the market related rate but at least my place is in safe hands.
Yes but why would I pay your debt if I can buy a place of my own? We looked into renting until finding the right property to buy but you do not save anything. So the atvantage of renting is nothing. If you can afford a R6000 rental agreement you can afford buying a R600 000 house and you are not paying of someone elses bond? I see ABSA is granting 110% again. Most people do a credit check on renters. And most places asks up to 3 months or deposit in advance.. It's crazy I tell you
Yes there are still people who bought way back and is renting out at a reasonable price. But not that much.
With Property taxes screwing you on your second property SARS seeing rent as a extra income. And even if you still do it and it's worthwhile, Renters stuff up places these days. To find decent renters are like looking for chicken teeth. You are not allowed to evict people without them having a new place to stay... Very sticky laws regarding this these days.
BF lost R74 000 on legal fees on the house we sold now due to these laws. And when the renters left the broke every tile in the house ( hammer
Laws protecting people like these make letting a risky game.
Whatever you do you must never let your place to foreign nationals...especially from Africa. Those guys get trash your place real bad. The worst part is that they then bugger off out of the country and you are left to repair the damage. In that case buying to let becomes a very risky business. But my experience has taught me to let only to people I know personally, like relatives. I don't get the market related rate but at least my place is in safe hands.