Property investing in South Africa 1% rule

If you're starting out in real estate investing, then you need to know about the 1% rule of thumb of buying property in South Africa!

This rule is a basic math equation geared to help you quickly estimate the cash flow of potential real estate investment properties quickly!

Monthly Rent / Property Value = 1% or above

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Goodluck with #BuyingPropertyinSouthAfrica💰

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#1%rule #RealEstate #property

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Instagram 📸: @LouisReynhardt

[tien]

You may never know the value of that little money you have until you go bankrupt the bad experience I had last year really made me feel our school curriculum should have more financial literacy and education... It is never enough to have a good job, a huge salary and all the luxuries at your disposal, ... But putting some money aside and investing it wisely is never a bad idea, ... I learned to invest, no matter how small but life really taught me the hard way.... Investing gives you an edge over tomorrow.... I hope everyone learns too
God bless you in your efforts to educate others, it is always interesting to watch your contents.

[hhhhh-illp]

I've been using this rule unconsciously. Great tip!

[Asanda]

Hi Louis, thanks for the tìps and info. Im a novice with one property. I only now subscribed

[ZitaFilmz]

Baie cool ou. Jy leer my baie. keep on. :)

[jehukhomola]

Louis this is a very good tip. Thank you

[sihlemasondo]

Thank u I'm gona start using this 1% rule

[waterblomrandvaal]

Morning doing my rounds as always .Ayanda Nobatana from midvaal.

[NonnyPali]

Very handy tips, especially to me as a novice in this industry. How about writing a handbook/pocket book on tips to spot good potential real estate deals. Pdf forms are way these days.

[armandbadenhorst]

So I am knew into buying investment properties and this is my first residence I
Recently bough, t a 1 bedroom duplex in a well established neighborhood for R380000 and the market value is around with the rates, taxes, bond and leavy I am currently making a good R1200 out of the deal 😀 🙂 can't believe I found this Dimond

[Meu]

Hey, Louis.

I am looking to go into property wholesaling, and I'm confused about certain things:
1. Do I need a FFC to start, or do I just go in as a sole proprietor?
2. I have a self-drafted contract, do I need to send it in at the PPRA, do I need to pay to get the contract approved stamp or go to a property lawyer?

Your help would be appreciated.

[nadiadomingoselebedi]

Hi Louis, what do you think about fractional property investing? I saw neighbourgoods advertising this. I’ve never heard about it until now

[malcolmdunkeld]

Hi Louis, thanks for the great videos. I own a property but my new employment includes housing. How do I best decide whether is should keep my property and rent it out or sell it? I assume the 1% rule is slightly different as I have been paying off the bond for a while. Do I calculated on what I still owe on the bond?

[Akchi]

Ek wil graag in eiendomme in gaan, maar hier in Mosselbaai is dit meer soos 0.5% rule. Eiendomme is bitter duur hier.

[mzwandilemahlangu]

Hi Louis. Does this rule only apply to the purchase price or do you also have to take into account the other expenses like attorney fees and renovation fees?

[erikbritz]

*Hi Louis i want to ask can this be applied to vehicles when buying them for your business etc. reason is this might be a good way to know if a vehicle makes sense to buy at all or not*

[siphamandlathusi]

hello sir.I have one question to ask please assist. if I did you the equation and keep on giving me 1% and the number after the comma please kindly explain if this still the right decision to invest in this property

[Herr_Vorragend_HH]

What is the reason for the 1 % rule? What is the math behind that rule? I did not get it.

[RL-wedg]

Basically you’re looking for a 12% rental yield. Is this to match the bank interest rate?

[aaronlamula]

Good afternoon my brother 💪...

As a real estate beginer, what advise can you give me, starting from buttom?💪

I'm a student at North West University. I'm not interested to my course, I want to become an Rela Estate 😢

[mrdcza]

HI Louis, so essentially anything over 1% is a good deal?