The UGLY truth about property investing in South Africa

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Күн бұрын

The UGLY truth about property investing in South Africa
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Пікірлер: 86

@louisreynhardt 11 ай бұрын

Property, like leverage, can be a doubled edged sword!!!!

@ChristianNdu Ай бұрын

Sir do you have any platform for community to share their progress on real estate

@Etienne-rf5wt 8 ай бұрын

Can you make a video about all the paper work involved in buying/selling a property in SA? It would be super helpful

@louisreynhardt 8 ай бұрын

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.

@Fx-rw9nk 3 ай бұрын

Yes this is what I've been looking for

@deanesau9106 8 ай бұрын

Getting in (Registration and transfer costs) and getting out (agent costs) is something that is not talked about often enough

@louisreynhardt 8 ай бұрын

I agree. Most beginners aren't aware of it either. Thanks for pointing it out 😁

@ulwandon 5 ай бұрын

@@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

@louisreynhardt 5 ай бұрын

@ulwandon so sorry to hear about this man. Dont stress to muoch and never give up. Just keep learning bud 💪🏻

@ulwandon 5 ай бұрын

@@louisreynhardt it really demotivated me but i will regain and try again

@kennethlekhuleni917 5 ай бұрын

The agent should have advice that the property be 1275000 then when seller get paid by the bank then would pay the transfer cost

@ChristoffBenade-gw5jo 11 ай бұрын

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.

@louisreynhardt 11 ай бұрын

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.

@grimmm4166 5 ай бұрын

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.

@freebees2234 10 ай бұрын

My experience include agent fees and sars tax. Terrible 😮

@mrshleeful 11 ай бұрын

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

@louisreynhardt 11 ай бұрын

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.

@Jay-qu7rf 11 ай бұрын

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.

@louisreynhardt 11 ай бұрын

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.

@dylanabrahams2755 9 ай бұрын

Very informative...can you make a video about the pros and cons of buying property with cash???

@louisreynhardt 9 ай бұрын

Thanks for watching. Great suggestion. I will try making a video about this.

@stefd2600 4 ай бұрын

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.

@louisreynhardt 4 ай бұрын

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.

@stefd2600 4 ай бұрын

Yes exactly. Part of the monthly mortgage / bond payment is capital and the other is interest. Thanks!

@macdonaldmolokwane4567 7 ай бұрын

Just discovered your channel this morning, I like how you breakdown this processes in layman's terms. Good job 👍

@louisreynhardt 7 ай бұрын

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 💪🏻👏🏻

@noelnyoni3724 7 ай бұрын

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.

@louisreynhardt 7 ай бұрын

Thanks for your comment and for sharing your thoughts. Also, thanks for supporting the channel. All the best.

@bhebhemchithwa6821 8 ай бұрын

How important it is to draft contracts with each and every tenant your renting your property to??

@louisreynhardt 8 ай бұрын

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 .

@mrshleeful 11 ай бұрын

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

@louisreynhardt 11 ай бұрын

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.

@GUUDKARMA_PRODUCTIONS 8 ай бұрын

Hey sir..What does the "escalation, and Bond and transfers " denote ?

@louisreynhardt 8 ай бұрын

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.

@heinrichjansevanrensburg3828 11 ай бұрын

Great Video, thanks for being so honest Louis! 👌

@louisreynhardt 10 ай бұрын

Thanks Heinrich 💪🏻

@GUUDKARMA_PRODUCTIONS 8 ай бұрын

Also how does one appropriately estimate the rental amount to charge tenants

@GUUDKARMA_PRODUCTIONS 8 ай бұрын

Adding profit margin you want on cost, having considered comparable rental prices in area?

@louisreynhardt 8 ай бұрын

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

@bhebhemchithwa6821 8 ай бұрын

Great video Louis, I'm slowly learning something new.

@louisreynhardt 8 ай бұрын

Great stuff, keep on learning. Check out my real estate playlist if you want to learn more. 💪🏻

@Kwameking1 2 ай бұрын

Excellent info.

@louisreynhardt 2 ай бұрын

Thanks my friend 👊🏻 💪🏻

@davidmatsosepaile5148 8 ай бұрын

thank you so much for the advice

@louisreynhardt 8 ай бұрын

My pleasure, thanks for watching 👊🏻

@brianbeyers6763 6 ай бұрын

Thank you so much! How can I become part of your membership?

@louisreynhardt 6 ай бұрын

You can click on JOIN underneath my channel or videos. Or you can pop me an email at louisreynhardt@gmail.com 👊🏻

@skillpoints 9 ай бұрын

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.

@louisreynhardt 9 ай бұрын

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.

@antoniodomingues1915 10 ай бұрын

Hi I’m still young and I wanted to know what’s the best way to build a good credit score

@louisreynhardt 10 ай бұрын

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 kzfaq.info/get/bejne/orGdqpZ4ntWZfps.htmlsi=GSsbvo5gs3CrfNEv

@Mark71697 9 ай бұрын

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.

@louisreynhardt 9 ай бұрын

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

@kim-lusteenkamp4866 2 ай бұрын

Louis I am binge watching all your content. Really insightful information

@louisreynhardt 2 ай бұрын

Welcome to the channel my friend 💪🏻 💪🏻

@user-cx2lw2fs7u 10 ай бұрын

Hi, have you heard of immediate momentum? If so, do you think it's legit

@louisreynhardt 10 ай бұрын

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

@kylestohr7964 11 ай бұрын

How can I get the excel sheet.?

@louisreynhardt 11 ай бұрын

Hi Kyle, You can join my cheapest membership to get access to the evaluation sheet. Thanks for watching.

@tearyb 10 ай бұрын

@@louisreynhardthow to join your membership for the excel sheet.

@louisreynhardt 10 ай бұрын

@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

@ndiwavhomukwevho7196 8 ай бұрын

Say you have 300k and you wanna get in property investments, what would you do?

@louisreynhardt 8 ай бұрын

I would do this, kzfaq.info/get/bejne/qMySqsqV3LvMiIE.html If you haven't seen the video, check it out. Leave a comment there if you have any questions. Hope it helps 🙏🏻

@deanesau9106 8 ай бұрын

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.

@louisreynhardt 8 ай бұрын

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 👊🏻

@deanesau9106 7 ай бұрын

Thanks Louis. Will touch base shortly.

@user-yd3qe7pc5s 7 ай бұрын

What is your take when hiring rental agent?

@louisreynhardt 7 ай бұрын

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.

@luyolo79 7 ай бұрын

Do you use corporation? Which one? And why? Especially when you were a new b

@louisreynhardt 6 ай бұрын

I started with a family trust and a property trust 🙌🏻🙌🏻

@luyolo79 6 ай бұрын

@louisreynhardt why did you choose that, and if you were to start over, what would you change from your strategy?

@jldp24 8 ай бұрын

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

@louisreynhardt 8 ай бұрын

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.

@jldp24 8 ай бұрын

@@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

@louisreynhardt 8 ай бұрын

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.👊🏻

@jldp24 8 ай бұрын

@@louisreynhardt unless you have some prospective cheap investments with great roi and are looking for investors to join your circle.... rgds

@eugenematthews1981 Ай бұрын

really good video with current and relevant facts

@louisreynhardt Ай бұрын

Thanks my friend appreciate your comment 🙏🏻

@eugenematthews1981 Ай бұрын

@louisreynhardt currently going through a development from scratch, going through planning approvals at the mo

@user-ru5qf8zt2d 10 ай бұрын

Great video

@louisreynhardt 9 ай бұрын

Thank you my friend 🫶🏻

@terrencembanya3035 9 ай бұрын

The title of the video is deceiving, all these problems are common regardless of where you are in the world.

@louisreynhardt 9 ай бұрын

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.