Also depends on the interest rates, 590 0000 repayment R7500, levies R2600, sewerage R600, rates R300, this is what most people found themselves in. Lucky I was able to sell and got of of this debt trap. Monlthy payment R11 000 for a R590 000 townhouse, meanwhile rentals go for R6400😭, will never buy ST again.
What many people also forget is that monthly bond repayments have to be split into 2 components; interest and capital. This means you potentially run the risk of the property running cash flow negative yet you find yourself needing to pay tax on a negative cash flowing asset as only the interest can be expensed (not the full bond repayment) along with levies, rates, repairs and maintenence e.t.c
When I bought, I worked my finances on a worst case scenario, 23% interest rate. This has worked well, as my finances could survive the interest rate hike the last 3 years. I also bought in a complex where the finances are well looked after, with a raise in levy of R150 and a R10 raise in municipal rates over 5 years.
Please make a video on the dealing the property owners not paying levies. I don't like buying apartments and townhouses for this reason. The complex is then not well maintained
It's pretty easy to deal with non-payers in a modern world. Especially if they have tenants in it. The other benefit of buildings with bad financials is that there is potential opportunities to aquire units for a below market value price.
thanks alot Louis this is your field of knowledge you shine with these investment talks. i guess its important to do your homework. so people are definately right about buying a place, got to make sure!
Just make sure that you put enough $ down (deposit) / lend less money from the bank to break even at least. No need for a shortfall. 😊 Thanks Louis. Great videos!
I will look into a video about house hacking. I think it can be a great strategy when done correctly. I dont have to much skill in development so I will stick to what I know. 💪🏻🤣
@@louisreynhardt if possible can you make a video covering that part of the topic the advantages and disadvantages of it if you know more about that topic ...
Townhouses seem to the low cost housing of lower middle class of populace ... Townhouses don't seem very attractive for upper middle class and the wealthy
@@louisreynhardt well wherever there's opportunity and Demand there's deals to be made. Thanks for your for guiding us through this newly open market space ...still lots to learn
BUY My Property Course here : payhip.com/LouisReynhardt
Also depends on the interest rates, 590 0000 repayment R7500, levies R2600, sewerage R600, rates R300, this is what most people found themselves in. Lucky I was able to sell and got of of this debt trap. Monlthy payment R11 000 for a R590 000 townhouse, meanwhile rentals go for R6400😭, will never buy ST again.
It's scary how quickly those numbers add up. Thanks for sharing and for adding value in the comments 💪🏻
That's wild over 14% if loan term is 20 years and no deposit.
What many people also forget is that monthly bond repayments have to be split into 2 components; interest and capital. This means you potentially run the risk of the property running cash flow negative yet you find yourself needing to pay tax on a negative cash flowing asset as only the interest can be expensed (not the full bond repayment) along with levies, rates, repairs and maintenence e.t.c
Absolutely, thanks for taking the time to add value in the comments 💪🏻
That CASH FLOW sign in your background is everything, if you understand this then you will be on your way to increasing your wealth.
Absolutely, glad you agree. 🙏🏻 cash flow is king 🤴
What you saying makes alot of sense definitely worth my subscribe boet.Thanks for the info
Welcome to the channel . Thanks for the support 💪🏻💪🏻
When I bought, I worked my finances on a worst case scenario, 23% interest rate. This has worked well, as my finances could survive the interest rate hike the last 3 years. I also bought in a complex where the finances are well looked after, with a raise in levy of R150 and a R10 raise in municipal rates over 5 years.
Great tip. Thanks for sharing . Using an additional amount for the margin of safety is very smart.
Very useful information, it's a pity some of use only understand it after experiencing it....
Unfortunately. Hope this channel can help. Please share with your friends to make them aware. Thanks for watching 💪🏻💪🏻
How can i get hold of repossed houses. Great advice
You can look on Property 24 for properties that are listed by banks. Once you find one, you can click on view all listings to see all their propeties
Who owns the land if you buy a townhouse
The bank if its a loan and effectively the body corporate system only gives you shared ownership
Please make a video on the dealing the property owners not paying levies.
I don't like buying apartments and townhouses for this reason. The complex is then not well maintained
It's pretty easy to deal with non-payers in a modern world. Especially if they have tenants in it. The other benefit of buildings with bad financials is that there is potential opportunities to aquire units for a below market value price.
Great suggestion. Ill look into this video topic. 👊🏻
Thanks for adding value in the comments 💪🏻
Thank you for always keeping our minds sharp, appreciate you UNC !
Anytime my friend 💪🏻💪🏻
What happened to what's "Louis I'm guys?"😅
🤣 maybe next time 💪🏻
thanks alot Louis this is your field of knowledge you shine with these investment talks. i guess its important to do your homework. so people are definately right about buying a place, got to make sure!
Absolutely market research is really important. Thanks for watching and for supporting the channel. 💪🏻
Just make sure that you put enough $ down (deposit) / lend less money from the bank to break even at least. No need for a shortfall. 😊
Thanks Louis. Great videos!
Great tip thanks for watching 💪🏻💪🏻🏠🏠
What are your views on house hacking and developing land?
Would you think about making a video on each of these topics?
I will look into a video about house hacking. I think it can be a great strategy when done correctly. I dont have to much skill in development so I will stick to what I know. 💪🏻🤣
What is your advise on build to rent properties??!
Difficult topic. I think sticking to the building budget will be your toughest challenge. I would add 20% to the budget for margin of error.
@@louisreynhardt if possible can you make a video covering that part of the topic the advantages and disadvantages of it if you know more about that topic ...
Townhouses seem to the low cost housing of lower middle class of populace ... Townhouses don't seem very attractive for upper middle class and the wealthy
Great point. I would say it's a typical middle-class investment. But it doesn't make it a good investment
@@louisreynhardt well wherever there's opportunity and Demand there's deals to be made. Thanks for your for guiding us through this newly open market space ...still lots to learn