@@louisreynhardt true i got approved for a R1.2m property bond but i had to pay R75k for reg and transfer costs, i was so shocked and i couldnt raise that over 3 months which costed me credit history and score... i also didnt get the house, im still hurt
Sure, I'll be looking into this. I have a course coming soon talking about the whole buying process etc. Let me know if you would be interested in this.
Hi with property get building insurance that will cover all the fixtures and the replacent of the broken stuff. Also some insurance gives payment to you for tenements that dont pay. That way it lowers the risk. Mine is costing me R400 a month. I can replace carpets cuboards, geysers, paint wall damage, doors electricity, geysers. All in a claim. We all know the cost to return a asset back to its great state costs more than a deposit.
1/2 of Gross income minimum available to get approved these days. So for a 1million rand apartment youl need approximately R35 000 a month income with not half of that used as expense. 1million apartment youl get about 8to9 grand a month. So will definitely be a cash negative investment. Not so easy getting into the market if you dont have a very stable ans decent income.
Great insight, Christoff. Thank you for sharing. A good and stable income makes investing in property much easier. It's possible without it, but most people dont have the necessary skills and knowledge to achieve this. Shortfall properties can become liabilities very quickly if you do not have adequate reserves or equity in the property.
That's not too bad, depending on the ROI you're looking at. If it's a 1 mil property with 10k a month, that's around 8 and a half or so years before your property has paid you back. You then have an asset which creates profit. Generally 5-7 years is more attractive, but if you have a number of investments 8 years is not too bad.
Best to own your primary property with atleast 10% to 20% deposit to be worthwhile. Other than that home loans are just for banks. Best to rent and be more liquid. Millionaires buy houses - Billionaires rent a houses
Thanks for sharing Ashley. Being able to put down a deposit will drastically reduce your monthly bond. I agree, rentimg can definitely be much cheaper.
Thanks for putting you content out there. One mistake on you calculation, although the first property is cash flow negative, you could argue that you are paying a part of the monthly mortgage payment down as capital. (I did not go and calculate how much). So if you could get an access bond for instance, you could reuse the capital just paid again. That being said, its the same for the other deals.
I'm sorely disappointed in property. I sold off an investment property last year with little profit, and I'm in the process of selling off my last investment property probably at a loss. Despite these properties being in really great areas, they either never appreciated or lost value. The costs are getting out of hand wrt levies, rates&taxes, load shedding, etc. However I will say that AirBNB was really good income. Bitcoin did much much better over the past ten years. I'd rather hodl Bitcoin instead.
Thanks for sharing Jay. I think that's why equity and cash flow are very important when it comes to investing in property. I'm sorry to hear about your bad experiences. Airbnb has created a lot of opportunities for homeowners.
very informative Louis....you've gained an extra follower, such eye-opening information. I am a beginner investor I relate with most of the information you dish out...great work indeed.
If you can Airbnb your investment property its worthwhile and you need to be hands on. Renting is a complete waste of time and money in these times. Both my properties are worth basically same as it was 5 to 6 years ago. Airbnb was my only saving grace until the bodycorp band it from our complex for security reasons
Airbnb has created very good opportunities for people who own property. I guess it all depends on your area or city. Some Airbnbs do very well and other not so well.
Hi Thato Thanks for watching and supporting the channel. I do offer more advanced guidance. You can check out this link BUY My Property Course here : payhip.com/LouisReynhardt
Comparable figures are the best way as well as market research and experience. An easy way is to look on property 24 or Facebook what similar flats are renting for. Sometimes, it's a bit of an expirement at first
Great question! Unfortunately, not a lot of people are willing to share their secrets( I hope this channel can help a bit) A mentor can be a friend/ paid mentor or even just a parent with the right knowledge or even a person writing a book. As long as you can learn from others, they can be seen as mentors). I had people directing me in the right direction, but no one was willing to hold my hand while I still learned. Reach out to people you know has the right knowledge. They might just be willing to help.
Yes for sure. It depends on your exact circumstances, but I would say. Property in SA is cheap with decent long term growth. It's easy to acquire financing (meaning less of your own capital) Massive tax advantages when using the right structures. Diversification Great cash flow opportunities
Escelation is how much your rent or levies will go up each year. Bond and transfer costs are cash you have to pay to register a new bond and to transfer the property to your name.
Great stuff, starting early will help you a lot. Just focus on getting credit and paying it on time. You can watch this video, its a old one, but it's still very informative ua-cam.com/video/lKmw3G9o5Ng/v-deo.htmlsi=GSsbvo5gs3CrfNEv
I would do this, ua-cam.com/video/rfbwgdwUhXM/v-deo.html If you haven't seen the video, check it out. Leave a comment there if you have any questions. Hope it helps 🙏🏻
Thanks for your comment. Just remember Western Cape s a completely different market, and you should use the right strategy to make money there. Levies, rates, and taxes are not a reason to not invest in property.
@@louisreynhardt I'm not going to get into the under R500k segment..I'm gonna buy a house with my accumulated equity growth over the years..keep a few of them and sell the rest off..its not worth it
The great thing is, it sounds like you have a plan . That's very important because it means you are learning. Look, WC is a different market to invest in. Im assuming all your properties were cash flow negative, hence your change in strategy. As long as you find something that can work for you, it's good.👊🏻
When starting out, it's much better. Takes away a lot of the stress. Just make sure you use a very good agent, and while using them, learn as much as you can.
Thanks for your videos. I've been thinking about going back into investment property again. Do you have a company or director email address I can reach you on? This might be for the minority but it would be good if you could make a video for people that have the full amount of money and put it into a access bond and see how that differs from a normal bond. Many thanks.
Thanks for your comment and for watching the video. I'll see if I can touch on the topic in future videos. Thanks for the suggestion. Sure , you can pop me an email at louisreynhardt@gmail.com 👊🏻
Exactly, and that is why the video is made. If you have learned something, then great. There is no need for negative comments. The purpose is to help beginners and new investors.
Property, like leverage, can be a doubled edged sword!!!!
Sir do you have any platform for community to share their progress on real estate
Getting in (Registration and transfer costs) and getting out (agent costs) is something that is not talked about often enough
I agree. Most beginners aren't aware of it either. Thanks for pointing it out 😁
@@louisreynhardt true i got approved for a R1.2m property bond but i had to pay R75k for reg and transfer costs, i was so shocked and i couldnt raise that over 3 months which costed me credit history and score... i also didnt get the house, im still hurt
@ulwandon so sorry to hear about this man. Dont stress to muoch and never give up. Just keep learning bud 💪🏻
@@louisreynhardt it really demotivated me but i will regain and try again
The agent should have advice that the property be 1275000 then when seller get paid by the bank then would pay the transfer cost
Can you make a video about all the paper work involved in buying/selling a property in SA? It would be super helpful
Sure, I'll be looking into this. I have a course coming soon talking about the whole buying process etc.
Let me know if you would be interested in this.
Yes this is what I've been looking for
Hi with property get building insurance that will cover all the fixtures and the replacent of the broken stuff. Also some insurance gives payment to you for tenements that dont pay.
That way it lowers the risk. Mine is costing me R400 a month.
I can replace carpets cuboards, geysers, paint wall damage, doors electricity, geysers. All in a claim.
We all know the cost to return a asset back to its great state costs more than a deposit.
1/2 of Gross income minimum available to get approved these days. So for a 1million rand apartment youl need approximately R35 000 a month income with not half of that used as expense. 1million apartment youl get about 8to9 grand a month. So will definitely be a cash negative investment. Not so easy getting into the market if you dont have a very stable ans decent income.
Great insight, Christoff. Thank you for sharing. A good and stable income makes investing in property much easier. It's possible without it, but most people dont have the necessary skills and knowledge to achieve this.
Shortfall properties can become liabilities very quickly if you do not have adequate reserves or equity in the property.
That's not too bad, depending on the ROI you're looking at. If it's a 1 mil property with 10k a month, that's around 8 and a half or so years before your property has paid you back. You then have an asset which creates profit. Generally 5-7 years is more attractive, but if you have a number of investments 8 years is not too bad.
My experience include agent fees and sars tax. Terrible 😮
Best to own your primary property with atleast 10% to 20% deposit to be worthwhile. Other than that home loans are just for banks. Best to rent and be more liquid. Millionaires buy houses - Billionaires rent a houses
Thanks for sharing Ashley. Being able to put down a deposit will drastically reduce your monthly bond. I agree, rentimg can definitely be much cheaper.
Thanks for putting you content out there. One mistake on you calculation, although the first property is cash flow negative, you could argue that you are paying a part of the monthly mortgage payment down as capital. (I did not go and calculate how much). So if you could get an access bond for instance, you could reuse the capital just paid again. That being said, its the same for the other deals.
Thanks for your comment. Do you mean capital paydown? If so, it's definitely something to consider, but this is more focussed on in IRR Calculations.
Yes exactly. Part of the monthly mortgage / bond payment is capital and the other is interest.
Thanks!
I'm sorely disappointed in property. I sold off an investment property last year with little profit, and I'm in the process of selling off my last investment property probably at a loss. Despite these properties being in really great areas, they either never appreciated or lost value. The costs are getting out of hand wrt levies, rates&taxes, load shedding, etc. However I will say that AirBNB was really good income. Bitcoin did much much better over the past ten years. I'd rather hodl Bitcoin instead.
Thanks for sharing Jay. I think that's why equity and cash flow are very important when it comes to investing in property. I'm sorry to hear about your bad experiences. Airbnb has created a lot of opportunities for homeowners.
Very informative...can you make a video about the pros and cons of buying property with cash???
Thanks for watching. Great suggestion. I will try making a video about this.
You're like the property uncle we never had. Solid advice. Keep it up. Thank you.
Thanks for the support my friend. Appreciate your comment 🙏🏻
very informative Louis....you've gained an extra follower, such eye-opening information. I am a beginner investor I relate with most of the information you dish out...great work indeed.
Thanks for your comment and for sharing your thoughts. Also, thanks for supporting the channel. All the best.
How important it is to draft contracts with each and every tenant your renting your property to??
Tjis is extremely important. I can not stress enough how vital this is. You should also make sure that you vet all your tenants before they move in .
If you can Airbnb your investment property its worthwhile and you need to be hands on. Renting is a complete waste of time and money in these times. Both my properties are worth basically same as it was 5 to 6 years ago. Airbnb was my only saving grace until the bodycorp band it from our complex for security reasons
Airbnb has created very good opportunities for people who own property. I guess it all depends on your area or city. Some Airbnbs do very well and other not so well.
great Video do you charge for advise would love have a meeting with you just recently invested in property
Hi Thato Thanks for watching and supporting the channel. I do offer more advanced guidance. You can check out this link BUY My Property Course here : payhip.com/LouisReynhardt
Just discovered your channel this morning, I like how you breakdown this processes in layman's terms.
Good job 👍
Welcoms to the channel my friend. Check out the rest of the real estate videos. There is a lot of free value. Thanks for your comment 💪🏻👏🏻
Also how does one appropriately estimate the rental amount to charge tenants
Adding profit margin you want on cost, having considered comparable rental prices in area?
Comparable figures are the best way as well as market research and experience. An easy way is to look on property 24 or Facebook what similar flats are renting for. Sometimes, it's a bit of an expirement at first
A lot of people I watch always speak about their mentors, but what techniques can you use to find someone that is willing to give you some advice.
Great question! Unfortunately, not a lot of people are willing to share their secrets( I hope this channel can help a bit)
A mentor can be a friend/ paid mentor or even just a parent with the right knowledge or even a person writing a book. As long as you can learn from others, they can be seen as mentors). I had people directing me in the right direction, but no one was willing to hold my hand while I still learned.
Reach out to people you know has the right knowledge. They might just be willing to help.
Great video Louis, I'm slowly learning something new.
Great stuff, keep on learning. Check out my real estate playlist if you want to learn more. 💪🏻
Is it worth purchasing real estate in south africa or would it be more lucrative in another country? Please give 3 reasons for your answer.
Yes for sure.
It depends on your exact circumstances, but I would say.
Property in SA is cheap with decent long term growth.
It's easy to acquire financing (meaning less of your own capital)
Massive tax advantages when using the right structures.
Diversification
Great cash flow opportunities
Thank you so much! How can I become part of your membership?
You can click on JOIN underneath my channel or videos. Or you can pop me an email at louisreynhardt@gmail.com 👊🏻
Hey sir..What does the "escalation, and Bond and transfers " denote ?
Escelation is how much your rent or levies will go up each year.
Bond and transfer costs are cash you have to pay to register a new bond and to transfer the property to your name.
Hi I’m still young and I wanted to know what’s the best way to build a good credit score
Great stuff, starting early will help you a lot. Just focus on getting credit and paying it on time.
You can watch this video, its a old one, but it's still very informative ua-cam.com/video/lKmw3G9o5Ng/v-deo.htmlsi=GSsbvo5gs3CrfNEv
Say you have 300k and you wanna get in property investments, what would you do?
I would do this, ua-cam.com/video/rfbwgdwUhXM/v-deo.html
If you haven't seen the video, check it out. Leave a comment there if you have any questions. Hope it helps 🙏🏻
Louis I am binge watching all your content. Really insightful information
Welcome to the channel my friend 💪🏻 💪🏻
Great Video, thanks for being so honest Louis! 👌
Thanks Heinrich 💪🏻
If you a middle class oke trying to get into property with 500k down by the age of 30..dont..its not worth it..esp in the WC..levies..rates..etc
Thanks for your comment. Just remember Western Cape s a completely different market, and you should use the right strategy to make money there. Levies, rates, and taxes are not a reason to not invest in property.
@@louisreynhardt I'm not going to get into the under R500k segment..I'm gonna buy a house with my accumulated equity growth over the years..keep a few of them and sell the rest off..its not worth it
The great thing is, it sounds like you have a plan . That's very important because it means you are learning.
Look, WC is a different market to invest in. Im assuming all your properties were cash flow negative, hence your change in strategy.
As long as you find something that can work for you, it's good.👊🏻
@@louisreynhardt unless you have some prospective cheap investments with great roi and are looking for investors to join your circle.... rgds
Do you use corporation? Which one? And why? Especially when you were a new b
I started with a family trust and a property trust 🙌🏻🙌🏻
@louisreynhardt why did you choose that, and if you were to start over, what would you change from your strategy?
What is your take when hiring rental agent?
When starting out, it's much better. Takes away a lot of the stress. Just make sure you use a very good agent, and while using them, learn as much as you can.
Thanks for your videos. I've been thinking about going back into investment property again. Do you have a company or director email address I can reach you on? This might be for the minority but it would be good if you could make a video for people that have the full amount of money and put it into a access bond and see how that differs from a normal bond. Many thanks.
Thanks for your comment and for watching the video. I'll see if I can touch on the topic in future videos. Thanks for the suggestion.
Sure , you can pop me an email at louisreynhardt@gmail.com 👊🏻
Thanks Louis. Will touch base shortly.
Excellent info.
Thanks my friend 👊🏻 💪🏻
Hi, have you heard of immediate momentum? If so, do you think it's legit
I have not, so I can't comment on its validity. I will suggest to go and google it and look for reviews. You should be able to see if it looks sketchy
thank you so much for the advice
My pleasure, thanks for watching 👊🏻
How can I get the excel sheet.?
Hi Kyle, You can join my cheapest membership to get access to the evaluation sheet. Thanks for watching.
@@louisreynhardthow to join your membership for the excel sheet.
@tearyb You can click on any video and click on the join tab underneath the video. Or feel free to send me an email at louisreynhardt@gmail.com
really good video with current and relevant facts
Thanks my friend appreciate your comment 🙏🏻
@louisreynhardt currently going through a development from scratch, going through planning approvals at the mo
The title of the video is deceiving, all these problems are common regardless of where you are in the world.
Exactly, and that is why the video is made. If you have learned something, then great. There is no need for negative comments. The purpose is to help beginners and new investors.
Great video
Thank you my friend 🫶🏻