MY R400 000 PROPERTY STRATEGY | SOUTH AFRICA

MY R400 000 PROPERTY STRATEGY | SOUTH AFRICA

(If you can spend Hundreds of rands per month on Netflix/ DSTV you might aswell spend it on something usefull like Seeking Alpha)

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DISCLAIMER: I`m not a financial advisor and hence the content of these videos are for educational and entertainment purposes only. Investing is a risk related practice and should be approached carefully.

[louisreynhardt]

If I could start over, this is what I would do.

[coenietorlage]

When you do renovations you should also include the time spent renovating. You won’t get rental income during that period. This is assuming that you will find a tenant immediately.

Overall great videos!! Very informative. Thank you for taking the time to make them. It’s great getting this kind of info from an SA perspective.

[RoomMush]

This is FANTASTIC info ! As a Principle of an estate agency in Cape Town if I may add a further tip.

1.) Properties with good ROI sell FAST. In order to get them faster and beat cash buyers get prequalified with a bond originator (It is free to do this)!
2.) If no properties are under R300k, sort the properties oldest to newest and search up to R400k on p24. If a property has been on the market for a long time there is a higher possibility the seller is closer to his/her "gatvol" point. Meaning they just want the property off their hands. This is also where great opportunity can come ! You can submit a realistic asking or even slightly bellow and if you followed step 1 then you have a higher chance of the seller accepting.
3.) Once you prequalified make friends with as many agents as possible and tell them you prequalified. If an agent can sell a property with out listing it they will (Less work to be done for them). You will make their job easy and they love that.

[timo]

Ive been looking for a video like this for ages!! Thanks

[JozieIsMe]

It would be great if you can do a bit more detailed version which takes into account Repairs & Maintenance and Management costs (admin costs of dealing with tenants)

[zadekeys]

My 2c....

1. Don't buy if you can't pay it off in 10-12y. Especially in SA

8k pm x 12months X 10y =R 960k
12y = R1, 1 52, 000.

1.1 Owning property = owning the problems, this drains more cashflow....

1.2 Rent 2 properties and re-rebt them out... This lowers risk, capital etc.

2. Get 1 bedroom extra for Airbnb or have a seperate section on the property where you can build and rent out something nice.

[jeanclaudekipinde]

I do property sourcing and student accommodation management and R400 000 can really be achieved looking in the right areas. Also sourced a property for a client for R650 000 with renovations of R30 000 and the monthly turnover on it now is R36 000 with a bond repayment of R5100 (owner put R200 000 in cash)

[thando_t]

Mlungu ❤my man thank you for not gate keeping 🤝

[wokeplug]

very insightful, glad I found your channel. <3

[theinvestorsden]

Hi Louis

This is a really excellent video and this was very informative. Thank you very much

[wandilehlatshwayo]

the only issue im picking up with the video is the prime interest rate used to calculate your bond. Realistically a newcomer to investing will be charged prime plus. This means the return will be lower than 30%, but still a good strategy. Great video. thanks

[ballpoolking]

Great video. Louis, could you make a video on renovation costs, how much should you put into fixing up a fixer upper?

[noluthandongcola]

Great video, this is exactly what I was planning on doing. Let me follow your channel 🙂

[Dwijii_]

Hey Louis, great video. I am a principal based in KZN but I also create property education videos. Can I have permission to utilise some of your videos as clips in a video I am creating and then give your credit and tag your channel as well? All positive things I see from this video and the exact same stance I have on investing as well as tell my clients.

[jeangalbraith]

You can't buy a kak huis for R900 000 in Cape Town

[marcobrienen]

What criteria do you consider when looking for places? What areas (locations) do you consider? Is a coastal vacation rental more profitable than student lodging? Do you lease out management of such properties or do you consider their proximity to yourself?

[Oder.my.steps.]

Am a college student finishing this year 2024, I am studying 📖 civil engineering and am very interested in property, you video has just helped me understand more on how this will go, I still have a lot to learn though 😂

[dailydoseofdaniels]

The prices of houses in the Western Cape is ridiculous. I can't speak on any other province. It honestly feels like you will never be able to buy a house even on a good salary 🤦

[Zion]

Your margins are razor thin. Any move in interest rates will wipe out your margin. Also any defaults on rentals will wipe out that margin. Now assuming you have 20 such properties, rates go up and suddenly you underwater big time and you are on the hook for those bond payments.
The risk reward here is questionable especially given tenant rights in SA.
Lastly, if you need to liquidate a property it’s a super slow process in SA so that’s another factor.

In my view, investing your money in equities is lower risk ( depending on the equities you buy), liquid, and just less hassle (no tenants, dealing with maintenance issues, etc).

[nivesh]

This is what many investors did, but instead they looked for property that allowed Airbnb or short term rentals and they over saturated the Airbnb and short term rental market.. They made millions and now the market is destroyed in most areas.. renting has become the best option again at the moment, unless listings start dropping. Great example of a perfect rental unit. Students are the best especially since most get paid by government or other agencies, so you won't have to worry about getting paid.