Sell or rent out apartment

[GrootVoet]

Do your calculation. I have a flat bought it for 200k in 2001, can sell it now for 850k. I rebonded it a couple of years ago and now owe the bank 250k. So if I sell my profit will be ~ 600k, minus CGT which will be ~ 100k which leave me with ~ 250k in my pocket. At them moment the bond and levy is covered by the rental, will hang on for while longer.

The biggest thing with renting is to make sure you have a good tenant.

 

[TStringList]

Do your calculation. I have a flat bought it for 200k in 2001, can sell it now for 850k. I rebonded it a couple of years ago and now owe the bank 250k. So if I sell my profit will be ~ 600k, minus CGT which will be ~ 100k which leave me with ~ 250k in my pocket. At them moment the bond and levy is covered by the rental, will hang on for while longer.

The biggest thing with renting is to make sure you have a good tenant.

That's the thing right - to find a good tenant.

Okay say it leaves me with 150k in pocket. What are the fees involved when selling?

 

[GrootVoet]

That's the thing right - to find a good tenant.

Okay say it leaves me with 150k in pocket. What are the fees involved when selling?

Estate agent commission. Normally between 3% and 5% of selling price.

 

[BBSA]

That's the thing right - to find a good tenant.

Okay say it leaves me with 150k in pocket. What are the fees involved when selling?

U can appoint an agent to help help you to find a good tenant.

Usually the buyer pays the agent and transfer
fees, so you don't really have any fees.

You will however have to pay your bank to cancel the bond.

 

[Mike Hoxbig]

Usually the buyer pays the agent and transfer
fees, so you don't really have any fees.

Seller pays agent fees. Also electrical compliance certificate...

 

[jambai]

Where is the flat ? The municipality that it is in is the biggest risk as you got no control over their bad service delivery

 

[BBSA]

Seller pays agent fees. Also electrical compliance certificate...

I have sold more than 15 properties, and never paid any agent fees. I tell the agent what I want and the agent add their fees.

Yes, the the cost of the coc is for the seller.

 

[saturnz]

if the flat is not in Cape Town I would sell it

 

[deweyzeph]

if the flat is not in Cape Town I would sell it

Pretty much this. Although also depends on where in Cape Town, but generally in Cape Town property prices only go up.

 

[deweyzeph]

That's the thing right - to find a good tenant.

Okay say it leaves me with 150k in pocket. What are the fees involved when selling?

Don't forget capital gains tax on the profit you make from selling. SARS also wants their share.

 

[BBSA]

Don't forget capital gains tax on the profit you make from selling. SARS also wants their share.

Depends if it was his primary residence or not.

 

[Mike Hoxbig]

I have sold more than 15 properties, and never paid any agent fees. I tell the agent what I want and the agent add their fees.

Yes, the the cost of the coc is for the seller.

What you tell them "you want", and the commission they add, forms part of the purchase price.

You as the seller enter into a mandate with the agent and negotiate the commission. The purchaser is not party to this agreement.

Don't mislead people into thinking that the purchaser pays agent fees...

All your questions about estate agents' commissions answered

The services of an estate agent are invaluable, but what does it cost? We answer questions you may have about the estate agent commission fees.

www.ooba.co.za

 

[The Trutherizer]

I always had the ambition to rent out my first apartment. But, as things stand, chancer renters (because the laws favour such behavior), sky high levies and commission (because the laws stipulate a personally untenable number of ins and outs), and of course the laws just becoming worse and worse for property owners over time - It is clear that this is a pipe dream.
I'm rather selling and investing.

More's the pity. The current young generation typically leans towards renting for life, but the government has basically overcomplicated the matter to the extent where renting out is such a high risk that no normal person has the means to just casually do it. And do it profitably compared to just selling. The property prices are artificially inflated, because buy and sell is the preferred means of profiting from property now. And high property prices + high rental risk means the cost to rent is unnecessarily high.

It's really like the ANC wants young and poorer people to forever feel like a better life is out of their reach.

 

[BBSA]

What you tell them "you want", and the commission they add, forms part of the purchase price.

You as the seller enter into a mandate with the agent and negotiate the commission. The purchaser is not party to this agreement.

Don't mislead people into thinking that the purchaser pays agent fees...

All your questions about estate agents' commissions answered

The services of an estate agent are invaluable, but what does it cost? We answer questions you may have about the estate agent commission fees.

www.ooba.co.za

If I want one million for my property I get that in my pocket then I did not pay any fees. I don't care how much the agent add to my asking price.

 

[xodosman123]

Passive income.

 

[Mike Hoxbig]

If I want one million for my property I get that in my pocket then I did not pay any fees. I don't care how much the agent add to my asking price.

You're now changing your tune. This is what you originally said

Usually the buyer pays the agent and transfer
fees, so you don't really have any fees.

Which is a far cry from what you're now saying.

But whatever, people are free to listen to your dangerous advice. When they find themselves fscked, they can pin the blame on BBSA from MyBB who's sold over 15 properties...

 

[airborne]

You're now changing your tune. This is what you originally said

Which is a far cry from what you're now saying.

But whatever, people are free to listen to your dangerous advice. When they find themselves fscked, they can pin the blame on BBSA from MyBB who's sold over 15 properties...

If I want one million for my property I get that in my pocket then I did not pay any fees. I don't care how much the agent add to my asking price.

I think a duel to the death would be appropriate.

 

[BBSA]

You're now changing your tune. This is what you originally said

Which is a far cry from what you're now saying.

But whatever, people are free to listen to your dangerous advice. When they find themselves fscked, they can pin the blame on BBSA from MyBB who's sold over 15 properties...

As I said, as long as the sellers gets his asking price, they agent fees is irrelevant for the seller.

 

[TStringList]

The flat is in Jhb North.

So the seller is liable for agent fees but it can be factored into the asking price.

Yes the rental laws do not inspire much confidence for the landlord right now. Of course, it depends on the quality of tenant but that is a bit of a hit and miss.

Going to put some feelers out there to see if I can get my asking price. Will still consider rental if nothing pans out.

 

[Splinter]

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.

I am gobsmacked.

Something that makes sense from Thor - in a very crude but creative way.