Sell or rent out apartment

TStringList

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Oct 24, 2014
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I've got a 1 bedroom apartment which I've recently renovated. I'm not sure whether to rent it out or sell. Would be keen to hear your thoughts based on the current property and economic climate.
 

etienne_marais

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Things are not going to look up economically soon. Property value probably going to decrease. My suggestion is to sell now. Tenants are just a hassle. BUT I'm no expert.
 

3WA

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If you want to lose money and get tax breaks, rent it out.

If you want to make money, sell it, and invest the freed up money in something worthwhile.

In the same situation, when my tenant's lease is up, I'm selling, probably at a loss.
 

hyperian

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Share a spreadsheet that lists all expenses (both fixed and variable) along with expected income. Be sure to include bond amount, interest rate, insurances, levies, and an estimate of likelihood of tenants defaulting. Also estimate sale value after expenses contrasted to purchase price to approximate capital gains tax seeing as this probably isn't your primary residence. You need to be making a decision against these else you're going on feeling, which won't necessarily result in the best outcome for you
 

Flippy

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Mar 23, 2008
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Sell

Tenants and body corporates are not worth the hassle honestly.
 

s0lar

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I am renting out my investment property. I end up paying in a few hundred a month. To me the return is worth it.
 

S.Claus

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If you do a quick Google search you will see what people have experienced with renters in SA (I remember the people occupying a house in some nice area and the owner had to keep paying the bills)
 

ThatGuy_ZA

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Nov 2, 2012
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I have a property worth roughly R1.6m that I plan to sell when we emigrate. It's a 3 bedroom apartment in Cape Town that would probably get me R10k/month rent. After estate agent fees (R750), levies (R2k) and rates (R1k), I'd take home roughly R6k AND would have to worry about the **** that tenants do.

If I sell it and invest +-R1.5m offshore, I could see returns of 8% PA pretty easily (roughly R10k/month) AND I wouldn't worry about the devaluing rand.

Obviously it's not quite as clear cut as that (I'm looking at you, Mr Tax Man) but it gives you an idea of what to think about.
 

BBSA

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I have a property worth roughly R1.6m that I plan to sell when we emigrate. It's a 3 bedroom apartment in Cape Town that would probably get me R10k/month rent. After estate agent fees (R750), levies (R2k) and rates (R1k), I'd take home roughly R6k AND would have to worry about the **** that tenants do.

If I sell it and invest +-R1.5m offshore, I could see returns of 8% PA pretty easily (roughly R10k/month) AND I wouldn't worry about the devaluing rand.

Obviously it's not quite as clear cut as that (I'm looking at you, Mr Tax Man) but it gives you an idea of what to think about.
Where are you going to get 8% PA?
 

krycor

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Aug 4, 2005
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The markets did well, but we will get another bear market and you have to take that into your calculations if you are a long term investor.

People investing based on historic are in for a shocker especially if only looking at the last decade. MMT would have to be proven correct, Japanese idiots in finance and you should also bet everything in a casino because you can’t lose.

In the meantime the FED who claimed inflation was transitory has many talking about transitory being 2-3yrs.. .
 

Thor

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Jun 5, 2014
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I've got a 1 bedroom apartment which I've recently renovated. I'm not sure whether to rent it out or sell. Would be keen to hear your thoughts based on the current property and economic climate.

Here's my opinion.

People fck. Land doesn't.

You own a part of the rarest thing in the known universe; habitable land.

Don't sell.
 
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