SA 'obsessed' about property

The problem with renting in SA is this.. It's nearly as costly as taking out the darn bond yourself! Rarely do I find rentals go for less than purchase bond monthly - (10% bond excl levies).. Which with insurance comes to paying typically 1.5-2.5k extra to have a return on your annual rental. If u ask me rentals in SA make absolutely no sense.. I'd not be renting if I found something suitable but alas...
 
krycor said:
The problem with renting in SA is this.. It's nearly as costly as taking out the darn bond yourself! Rarely do I find rentals go for less than purchase bond monthly - (10% bond excl levies).. Which with insurance comes to paying typically 1.5-2.5k extra to have a return on your annual rental. If u ask me rentals in SA make absolutely no sense.. I'd not be renting if I found something suitable but alas...
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That is the problem... greed of the landlord... wants the rental to cover the bond. The game, and I got this directly out of the horse's mouth, is to own as many properties as possible, and as many shelf companies, so that tax dodging can take place.
 
Koosi said:
That is the problem... greed of the landlord... wants the rental to cover the bond. The game, and I got this directly out of the horse's mouth, is to own as many properties as possible, and as many shelf companies, so that tax dodging can take place.
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You go ahead and start a charity rental company where you cover any losses out of your own pocket and rent out places for half the price of the bond. Oh wait, you don't want to pay out of your own pocket for other people to stay somewhere cheaply, why are you so greedy?
 
winner said:
On this topic, I'm not familiar with owning any property myself so i was hoping someone will give me a good insight as to why most people prefer buying these dilapidated houses in suburbs as compared to building your own house? no 2 Most people build big nice houses for a reasonable amount in rurals. even if you factor in the cost of delivery(most of those companies are based in town) and plot, it still doesn't add up according to my calculations.
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I don't know what the reason is its cheap-to-built rurally as you claim, but building a house costs more than buying a house of the same specifications in town.
 
winner said:
On this topic, I'm not familiar with owning any property myself so i was hoping someone will give me a good insight as to why most people prefer buying these dilapidated houses in suburbs as compared to building your own house? no 2 Most people build big nice houses for a reasonable amount in rurals. even if you factor in the cost of delivery(most of those companies are based in town) and plot, it still doesn't add up according to my calculations.
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Building cost vs buying. If you compare square meter prices. Show me what you are comparing. Comparing building in town where you need approved plans vs building on AH where you are not governed is comparing apples with oranges.
 
genetic said:
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.
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I tend to agree mostly BUT if you rent for R3-4k less, a month, and invest that at around 11-13%, instead of gaining net growth of 4% on property of say R10k/month you are close to breaking even. People however mistake this as meaning I can rent and not invest the "difference" that I am saving and still break even.
 
Agents are scum, no doubt. But they don't come close to the Banks in this country....
 
supersunbird said:
What's wrong with the banks? (except poor service sometimes, or very often if its ABSA)
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As someone who speculates on property I see banks giving credit around irresponsibly, even with the NCA in place. Their due diligence is superficial and that's not because of incompetence. Its because of greed. We not in a state now where the property market is bust and go and look at the market for repossessed home. Imagine when the bubble bursts.
 
As someone who has suddenly found a large amount of people applying for Debt Review, its scary the crap the banks get up to. Had one this morning where they are fully paid as per order but trying to cancel because due to the pay date being a Sunday THEY only processed the payment the Monday. By far STANDARD Bank the worst in this regard.
 
Sapcat said:
As someone who speculates on property I see banks giving credit around irresponsibly, even with the NCA in place. Their due diligence is superficial and that's not because of incompetence. Its because of greed. We not in a state now where the property market is bust and go and look at the market for repossessed home. Imagine when the bubble bursts.
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That is when I will invest in property...no way in hell I am touching property at the moment...I look at the price tags, and go...you got to be ****ting me....for the area, and the size of the property...- sorry, will continue to dump my extra cash into an investment account...till the bubble pops...
 
yebocan said:
That is when I will invest in property...no way in hell I am touching property at the moment...I look at the price tags, and go...you got to be ****ting me....for the area, and the size of the property...- sorry, will continue to dump my extra cash into an investment account...till the bubble pops...
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IMO you are going to be waiting a long time.
I agree property prices are higher than they should be in SA, but I only think growth will slow ... really doubtful we will see any "popping bubbles"
Great that you have the discipline to invest the extra cash elsewhere
 
McSack said:
IMO you are going to be waiting a long time.
I agree property prices are higher than they should be in SA, but I only think growth will slow ... really doubtful we will see any "popping bubbles"
Great that you have the discipline to invest the extra cash elsewhere
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Definitely agree with this..

We won't see a "price correction" so much as price growth possibly slowing a bit, and even then only in certain areas... other areas will still see strong price growth as the areas undergo regeneration etc...
 
ToxicBunny said:
Definitely agree with this..

We won't see a "price correction" so much as price growth possibly slowing a bit, and even then only in certain areas... other areas will still see strong price growth as the areas undergo regeneration etc...
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Seems then leafy suburbs of Cape Town are out, for me...oh dread....the Northern Subs...no offence to all the folks that side of the Boerewors curtain :D
 
Devill said:
I tend to agree mostly BUT if you rent for R3-4k less, a month, and invest that at around 11-13%, instead of gaining net growth of 4% on property of say R10k/month you are close to breaking even. People however mistake this as meaning I can rent and not invest the "difference" that I am saving and still break even.
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Please tell me where I can get this 11-13% return you speak of.
 
Had an extra bit of cash lying around doing nothing so I investigated all options. Decided to just dump it in the mortgage repayments which brought everything down quite nicely.
 
EtienneK said:
Please tell me where I can get this 11-13% return you speak of.
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I got 14% in the last two months doing gold (which I sold yesterday). Had a bit of spare change and felt like doing something other than unit trusts and the like. Funnily enough, the gold did the best by far, out of all my investments, even though everyone advised me not to go for it. Sort of regretting not having bought more at the time, but hindsight is 20:20.
 
Messugga said:
I got 14% in the last two months doing gold (which I sold yesterday). Had a bit of spare change and felt like doing something other than unit trusts and the like. Funnily enough, the gold did the best by far, out of all my investments, even though everyone advised me not to go for it. Sort of regretting not having bought more at the time, but hindsight is 20:20.
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Not talking about day-to-day trading here, but of investing. What can I put my money in that'll give me 11+% average the next 10 years?
 
EtienneK said:
Not talking about day-to-day trading here, but of investing. What can I put my money in that'll give me 11+% average the next 10 years?
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I know, so was I. Gold has been good to a lot of people, but now is probably not the best time. Satrix40 has been historically reliable. Nobody can 100% guarantee you 11+% though.

http://www.satrix.co.za/products/satrix40.aspx
 
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