I appreciate you saying if you're not paying tax you're not making money and making it clear that you want to pay the LEAST amount possible but there's always going to be tax to be paid if making money. As an accountant I'm so bored of hearing people wanting to pay zero tax but want to make millions in profit because it pushes people to fraud🤦🏽♂️
I break out in hives listening to this. People get sucked deeper and deeper into The System, bound up in so much red tape that they die from financial as well as existential suffocation. 1. Setting up a trust : upfront and ongoing costs from lawyers and accountants as well as bank costs, plus the time spent submitting to SARS, not to mention requiring endless monitoring by yourself. 2. Setting up a company/legal entity to own the real estate : see point 1. above. 3. Money and years of your life constantly flowing outwards as the system (government departments, SARS, accountants/auditors, attorneys, financial consultants, insurance companies, builders, banks (fees and interest) etc. extract their share of the little profit you make. 4. Refusing to become entangled in all the above by living modestly and thereby retaining time to spend with your loved ones and out in nature - priceless. #isfalsesecurityworthtradingyourfreedomfor?
An individual can claim the interest on a bond as a tax-deductible expense if the property is generating rental income. Additionally, individuals can claim deductions for repairs, maintenance, levies, property rates, and taxes, provided these expenses are directly related to the rental property. While I am not advocating for investment properties to be held in private capacity instead of through a business or trust, it’s important to note that many of the associated tax benefits can still be claimed as an individual.
I appreciate you taking the time to provide this information. I'm a Zimbabwean living in Namibia and moving to South Africa for studies next year. I'm just a student, so I dont have the capital to invest, but I have the time to learn all I can in preparation for when I have the capital. Thank you for the great content.
You can reduce your tax with stocks, for example if you day trade US common stocks, (meaning you hold stock for 5 minutes or less), the pc you using, Wi-Fi, software cost for charting, live data from the exchange, news data, your house as a office. To name the few: it’s always safe to say, I don’t know if that can be done.
Hey! Thank you for posting! If possible, i had sent you an email a week ago about acquiring the spreadsheet to determine if a house is a good investment 🎉
Thanks for reaching out. Appologies for the delayed response. I have been hectic busy the last few weeks. Ill jump into my email this week again and forward you the spreadsheets 🙌🏻
Thanks for the video. If I have equity on a property, with an existing bond that is being repaid, how do I refinance if there is still a bond to be repaid? Surely a second bond doesn’t make sense? How does it work?
Yes it has to involve property to benefit from all the tax beneifts. But the same principles can Apply to other businesses aswell. There is just a fine line
I have a run down property in Stellenbosch that has business rights, right next to big estate and in a huge growth zone. Currently an old house on it running as business but, Development granted for: 900sqm 70% coverage 3 storeys That's a potential GLA of +/- 1500sqm if developed at nothing under R150/sqm in Stellenbosch. Ideal spot for restaurants/gym/offices/residential/laundry/drive-through/hair-salon/doctors rooms etc. Etc. Come Louis reach out and let's develop this boet you can even film the process.
Thanks for sharing, sounds like a good opportunity. I would eventually attempt developing but at this stage I prefer buying existing properties. You can pop me an email at louisreynhardt@gmail.com with some more details if you want to. Thanks for watching 👊🏻
@@thamingobeni7075you just learn man, you always can create an entity tat purchases the property from you. This will cancel your bond in your name and place it in the entities name, potentially you can even borrow for higher and be sitting with cash. Although you do need to weigh up transfer fees/bond fees etc. But generally may work out better in the long run
i Have a fixed deposit investment of witch the interest is paid to me monthly but want to open another fixed deposit investment at another bank, will the interest of the second investment be classified as a second income and attract higher tax and capital gains tax or is it better to have all your eggs in one basket?
It will still form part of your taxable income either way. If it exceeds the tax threshold of the interest you can receive, that will increase your income tax. A option to consider is to invest that money into a TFSA which will be tax free
We regularly advise our clients on property ownership structures. In particular, we recommend using a close corporation (CC) rather than a private company, especially when considering succession planning and ensuring a smooth transfer of ownership to the next of kin.
How I pay no taxes in South Africa is to NOT own any property in SA anymore 😂. Not a good idea to own part of a ship that the ANC criminal cartel has been steering onto the rocks for 30 years. US property investment I made years ago grew 600% in R value in 18 years, 😂while the SA one decreased 10% in real terms and actually 50% when you factor inflation in over comparable time period…
I appreciate you saying if you're not paying tax you're not making money and making it clear that you want to pay the LEAST amount possible but there's always going to be tax to be paid if making money. As an accountant I'm so bored of hearing people wanting to pay zero tax but want to make millions in profit because it pushes people to fraud🤦🏽♂️
Thanks for your comment and for pointing that out. I totally agree. First make money, then focus on reducing taxes.
That's what he said? What did I miss?
I break out in hives listening to this.
People get sucked deeper and deeper into The System, bound up in so much red tape that they die from financial as well as existential suffocation.
1. Setting up a trust : upfront and ongoing costs from lawyers and accountants as well as bank costs, plus the time spent submitting to SARS, not to mention requiring endless monitoring by yourself.
2. Setting up a company/legal entity to own the real estate : see point 1. above.
3. Money and years of your life constantly flowing outwards as the system (government departments, SARS, accountants/auditors, attorneys, financial consultants, insurance companies, builders, banks (fees and interest) etc. extract their share of the little profit you make.
4. Refusing to become entangled in all the above by living modestly and thereby retaining time to spend with your loved ones and out in nature - priceless. #isfalsesecurityworthtradingyourfreedomfor?
Enjoying the videos. Thank you for the opportunity to learn more about the property game.
Definitely saving this video for the future
The more obsessed we are on not paying tax, the more the government obsesses on how they are going to tax us to death😂😂
Exactly 🤣
An individual can claim the interest on a bond as a tax-deductible expense if the property is generating rental income. Additionally, individuals can claim deductions for repairs, maintenance, levies, property rates, and taxes, provided these expenses are directly related to the rental property. While I am not advocating for investment properties to be held in private capacity instead of through a business or trust, it’s important to note that many of the associated tax benefits can still be claimed as an individual.
Thank you for this, love it
Only a pleasure. Enjoyed making this video.
I appreciate you taking the time to provide this information. I'm a Zimbabwean living in Namibia and moving to South Africa for studies next year. I'm just a student, so I dont have the capital to invest, but I have the time to learn all I can in preparation for when I have the capital. Thank you for the great content.
Thanks so much for watching. Im glad that this information is beneficial. Keep on learning and invest in yourself. All the best
Thanks, great video
Thanks for watching 👊🏻 💪🏻
Quite informative! Thanks 👍🏾
Thanks for watching 👊🏻 💪🏻
Very informative 👏
Thanks for watching 👊🏻
You can reduce your tax with stocks, for example if you day trade US common stocks, (meaning you hold stock for 5 minutes or less), the pc you using, Wi-Fi, software cost for charting, live data from the exchange, news data, your house as a office. To name the few: it’s always safe to say, I don’t know if that can be done.
We don't want to pay tax as cyril and co. are stashing our contributions in their couches !
💯
Hey! Thank you for posting! If possible, i had sent you an email a week ago about acquiring the spreadsheet to determine if a house is a good investment 🎉
Thanks for reaching out. Appologies for the delayed response. I have been hectic busy the last few weeks. Ill jump into my email this week again and forward you the spreadsheets 🙌🏻
@ Completely understandable, no stress at all! Thanks for getting back to me. Have a great week! ✨
Thanks for the video. If I have equity on a property, with an existing bond that is being repaid, how do I refinance if there is still a bond to be repaid? Surely a second bond doesn’t make sense? How does it work?
You can check out this video I made about refinancing.
ua-cam.com/video/kyCRtQQaiTA/v-deo.htmlsi=FPwAH08vFGygtwJL
Finally a new video. Great stuff Guys
Thanks for showing up and watching. Ive been hectic busy so had to skip a few weeks
Who then will own the company that holds the properties?
how do you get the book in the background its not online
You can follow this link of Jaco's website : prosperityenterprises.co.za/prosperity-through-property-book/
Does it have to be as a rental business or can this be done as a married couple?
Yes it has to involve property to benefit from all the tax beneifts. But the same principles can Apply to other businesses aswell. There is just a fine line
I have a run down property in Stellenbosch that has business rights, right next to big estate and in a huge growth zone. Currently an old house on it running as business but,
Development granted for:
900sqm
70% coverage
3 storeys
That's a potential GLA of +/- 1500sqm if developed at nothing under R150/sqm in Stellenbosch. Ideal spot for restaurants/gym/offices/residential/laundry/drive-through/hair-salon/doctors rooms etc. Etc.
Come Louis reach out and let's develop this boet you can even film the process.
Lol
Sell the deal
Well done
Good platform to approach😊
Thanks for sharing, sounds like a good opportunity. I would eventually attempt developing but at this stage I prefer buying existing properties. You can pop me an email at louisreynhardt@gmail.com with some more details if you want to. Thanks for watching 👊🏻
So when you guys talk about the bank interest does one need to take a bond in the entitys name or your personal name? Great show otherwise
This will still be in the entities name so that it can be used as a tax deduction.
I've messed up then because the bond is in my name 😢
@@thamingobeni7075you just learn man, you always can create an entity tat purchases the property from you. This will cancel your bond in your name and place it in the entities name, potentially you can even borrow for higher and be sitting with cash. Although you do need to weigh up transfer fees/bond fees etc. But generally may work out better in the long run
If you don't break even yet from your rental property, do you still have to pay tax?
@thusomaila3229 you wont pay tax if you dont make money on your bottom line. But you still need to submit your taxes to be above board with SARS.
i Have a fixed deposit investment of witch the interest is paid to me monthly but want to open another fixed deposit investment at another bank, will the interest of the second investment be classified as a second income and attract higher tax and capital gains tax or is it better to have all your eggs in one basket?
It will still form part of your taxable income either way. If it exceeds the tax threshold of the interest you can receive, that will increase your income tax. A option to consider is to invest that money into a TFSA which will be tax free
@@louisreynhardt Thank you.
We regularly advise our clients on property ownership structures. In particular, we recommend using a close corporation (CC) rather than a private company, especially when considering succession planning and ensuring a smooth transfer of ownership to the next of kin.
You can't set up CC's in South Africa for the past 20 years.
Yip, tried and only option is pty Ltd not for profit ones
Does a trust work in the same way
You can no longer set them up but there are companies that sell previously registered ones
@@s.mtambo6712 you’ll need to purchase one, as they were discontinued for this specific reason.
How I pay no taxes in South Africa is to NOT own any property in SA anymore 😂. Not a good idea to own part of a ship that the ANC criminal cartel has been steering onto the rocks for 30 years. US property investment I made years ago grew 600% in R value in 18 years, 😂while the SA one decreased 10% in real terms and actually 50% when you factor inflation in over comparable time period…
Lekker Louis, laat weet my as jy Trellidor’s, shutters of blinds kort in jou eiendomme. Glo ons kan iets uitwerk jy weet😊
@@jacovanwyk46 hi Jaco,
Stuur vir my 'n epos na Louisreynhardt@gmail.com. soek tans blinds vir so paar plekke.
Groete