How I find BARGAIN properties in South Africa
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- Опубликовано: 14 окт 2024
- How I find BARGAIN properties in South Africa | I Always try to buy my properties with at least 10% discount otherwise I will just walk away.
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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.
Registering the property at a higher value is something that need to be explained to everyone.
I agree, i will try to make a short video covering this. 💪🏻💪🏻
Myself do understand the explanation but never had the opportunity to actually apply it. In one instance I did a refinance of a existing property to get out equity for my new deal but ended up to re-register a existing bond because the bond value increased which was obviously more cost and not ideal as well as a time delay. Myself like to be liquid and have access to funds quickly so that I can finalise a transaction in as short as possible time.
I'm hoping that as my portfolio grow my liquidity increase and create a snowball effect.
As a 39 year old South African, with no experience or knowledge, this is gold. Thank you Meneer
Thanks so much, I am happy to hear 💪🏻💪🏻
I'm amazed you share such important information for free. You're the legend Louis
Thanks my friend appreciate it 😁💪🏻💪🏻
If I had this information 17 years ago here I would also planned my life different. Here 1 person started with 1 house like you and owns 20 houses now.
Thanks for sharing. It is interesting to hear that people follow this tried and tested method. I think short term its very hard, but long term, it will pay off
Love your content man, keep it up.💯
Thank you very much. I appreciate it. Share it with people you know will benefit. Thanks for watching 👊🏻 😎
Epic Louis. So amazing to see how your page is growing and giving great advice to others. Lekker man and keep going!
Thanks Manie, dankie vir die support en die goeie feedback 💪🏻🇿🇦💸
Happy to discover your channel for the first time today
Awesome, welcome to the channel my friend. 💪🏻💪🏻
Bro is dropping industry gems 💎
Thanks my friend 💪🏻💪🏻💪🏻
Please do a video on analyzing existing properties. When to decide to cut loses and sell. When the rental growth and property growth has been lower than projected , and or when the property shotrfall is not turning posotove after x years as u might have estimated.
Great suggestion, I will look into this. What would you title this video ? Any ideas?
Please make a video sharing all the tools you use to find properties & calculate what you would charge tenants if you’re renting it out.
Thanks for the suggestion. i would look into this. Feel free to suggest a video title for this. Thanks again
@@louisreynhardtMy pleasure. Maybe ‘How I analyse property deals like a professional property analyst’ & ‘How I know a property will cashflow’ It’s a bit of a mouthful, you could summarise it somehow.
Do you use property agencies?
Great content as usual...I hope this channel becomes really huge so that it continues to motivate you to never stop uploading ❤❤❤❤
My friend, this means a lot. Thanks so much for the positive feedback. I'm glad to hear my content can help others. Thanks for the support. All the best 💪🏻
Wow, amazing bro. These tips are great. Only discover ur channel now. Blessings to u sir
Welcome to the channel my friend 💪🏻💪🏻
Thanks for another great video. Could you make a video on business rights and zoning issues and other factors that could affect property not being used for residential purposes
Thanks for watching. Great suggestion. This is definitely a more advanced video to make, and not a lot of people will even know about this. I'll try to touch on the topic in some of my videos. Thanks for supporting the channel 💪🏻
I just found your channel today and been going through all your property videos . Thank you for this information and all you do 🙏🏾. Is the market high and low on property24 ?
New to the community and enjoying each and every video you upload!
Geeez thanks, this really makes me so happy to hear . Welcome to the channel. 😁💪🏻
I love you man. This is solid information 💪🏾. Thank you 🙏🏾
Anytime my friend. Thanks for the support 🙏🏻 🙌🏻
Thank you for the content. It's interesting because some Agents actually change their listing dates after about a month. There's a property I had my eye on for about 2 months, and the agent recently changed the listing date to early this month 😏😂.
😂😂😂someone is trying to be smart here
They normally do that so that it doesn't signal desperation. But its something agents do quite often haha 😄
@@louisreynhardt How do we mitigate this?
one tip I have might be a little dark...
speak to the neighbours should the opportunity arise, you can get a bit more insight into the sale, for example, if the seller is divorcing, they'll be even more desperate, and you can push the price down further as they will either have to sell the property if it's in community of property or whichever spouse gets to keep the house will have their affordability reevaluated for the current bond cost if the house isn't yet paid off.
Great tip. It always helps to speak to neighbors and tenants in the area. You can get some really good insight from them. Thanks for sharing 💪🏻💪🏻
Hey Louis, thanks again for another super helpful video💪
When will we be able to sign up early for the course you are releasing?🤩
Thanks so much for the positive feedback. I will be announcing the launch date soon as well as the early access details. If you want to, you can pop me an email at louisreynhardt@gmail.com so I can share the details directly with you.
All the best 💸
Best advice Louis very much appreciated.
Glad it can help my friend. Thanks for watching 💪🏻
Extremely informative content mate 🙌🏼💯
Appreciate it my friend. Thanks for watching 👊🏻 😎
Please make a vid regarding, buying in a trust vs buying in your own name and perhaps some things you've learnt about tax implications?
Thanks for the suggestion. I'll look into this 💪🏻
All the way from Botswana and loving your content.
Thanks for the support my friend appreciate it . Share it with your friend that can also benefit from the info 💪🏻
Hi Louis. Stumbled on your channel now. When you mention that you’ve bought at a discount to the market price, this works if the market value in the area is increasing. It can go wrong very quickly if the market value in the area is decreasing.
Then you can have a situation where your equity is negative after a few years.
People must be very careful WHERE they buy.
Welcome to the channel. You make a great point. But If you buy a property at a 10% discount, you are protectecting yourself from exactly this. You are buying equity and not hoping for appreciation.(Market Research is very important you are 100% right) but for the property market in general to drop with 10% suddenly is very unlikely and it will also only be in the shorter term. But again, if it happens, that's why you combine cash flow with equity to protect yourself from this because anything can happen
@@louisreynhardt Hi Louis. I don't agree that a drop of 10% or more in the value of the property is unlikely. This has happened historically many times in different areas of the country. Timing is crucial. If the area is becoming less affluent or higher crime etc. then your values can easily drop.
Here's a real life example for you and whoever else might read this:
My business partner bought a property in Sea Point at about 20% below market price in 2014. He recently sold it in 2023 for 10% less than what he paid in 2014. Again, he paid less than the market price in 2014. I know, because some of my other business friends bought in the same block and were able to resell at higher prices almost immediately, making about 30% profit.
@@louisreynhardt additionally, you mention cash flow: in a situation where interest rates rise rapidly (as happened in the 80s and again recently), there can be a situation where you can go from cash flow positive to cash flow negative VERY QUICKLY. Very important for people to understand all of these risks.
Thanks a lot for advice, much appreciated.
Plessure my friend. Thanks for watching 💪🏻😁
Louis, jy iis die beste !!
Question... if you register the property for lets say R1.2 mil and in 6 months time you want to refinance the property for lets say R1.4mil to access the R200 000 equity in the property, doesnt the refinance option costs quite a bit of money to do?
Pleasure my friend.
Great question! But no, if you register the property for the higher value in the beginning. You dont pay any money. But if you later want to refinance you will have to pay the registration cost again. So, this is a very important part of the refinance strategy. Thanks for supporting the channel 💪🏻💪🏻
I have recently come across your videos and love the content. I would love to know how your business is stuctured if you are willing to share. Meaning do you purchase as an individual, company or trust? Fica is making things difficult. I have done a few purchases on companies, tried one on a trust but the paperwork is just to frustrating. How do you manage the paperwork and all the document requirements?
Thanks for your comment, and thank you for supporting the channel.
Great question. So, I use accountants to help me with the tax filings and general management. But unfortunately, the admin part I do myself at the moment. It is a lot of work but I am self-employed so I usually make time for it. I realize that it can be difficult for someone working full time.
I Started with just trusts, meaning a Family trust and a Property trust and then just adding property trust. You can also then move to a CC And a Holding trust. But this is even more work.
Thanks for the great videos Louis. Would you be willing to share more on the pros and cons of buying with a trust rather than as an individual please. I recently bought my first property to rent out and after viewing one of your other videos realised that I overpaid- could you also maybe do a video explaining what you would do if you had this situation.
Thanks so much for the great info!
Great video! Thank you😊
Thanks for commenting. I'm glad you liked it 💪🏻
Appreciate your content and channel Louis
Thanks for the support and good feedback my friend . All the best 💪🏻
Thanks for your advices, you have great content keep up good work.
This means a lot. Thanks for watching and for supporting the channel. All the best
How do I create a property investment company, so that I can buy a property or get investment
Pop me an email at louisreynhardt@gmail.com and I cam give you some great recommendations 💪🏻💪🏻
Louis giving us big game 🙏🏽
Thanks my friend 💪🏻💪🏻
Thanks for tip 🙌🏽
Pleasure 💪🏻💪🏻
Very informative..I learnt alot...I like to meet you
Thanks my friend. Feel free to pop me an email at louisreynhardt@gmail.com
Dankie very informative good work
Thanks my friend. I appreciate the feedback 🙏🏻
Awesome content and thank you for sharing your knowledge and expertise... Just one question... When you keep re-applying for home loans for rental investment, the banks only use about 60-70% as income of your current rental property from what I heard when they do affordability assessment, would you then not run lower and lower over time on your income for affordability? Or do you substitute with deposit from equity you generate? Thanks
Great question, so if you use equity, you can get away with this. But it's important to always have cash flow and to prove to the banks that you can repay debt. If you can not cover your shortfalls, you will run out of affordability. This is also where structures come in, so theres a couple of important moving parts to this.
OK thanks for the feedback, this makes sense, so you cannot just be buying all the time, you actually need other forms of income and I suppose a continuing increasing of income to keep applying which does not make it that easy to constantly buy property.
@chezlinferguson7041 yes. Unfortunately its not that easy. But its still possible with the right structures 💪🏻
Hi Louis, your thoughts on negotiating downwards on a property that’s already reduced,does it make a negative impression or so?
It can go one of two directions. The owners/ agent might see it as a low ball, or they will accept it for what it is.
They can only say yes or no, its totally their decision. You can always start low and negotiate higher if they won't accept the offer. It's worth trying your luck. Some people get offended, but in my opinion, it's just business.
What's up Sunday its guys here😂
🤣🤣🤣
Brilliant, thank you 🙏🏾
Pleasure my friend 💪🏻
Hi Louis, this is absolutely awesome 💪great content! are you only interested in properties around Bloemfontein? please do Jozi bargain's & why is Cape Town properties so expensive?" 🙏
Thanks my friend. I'll look into a video about this. Currently, I only like Bloemfontein, but it's just because I know the area well. I dont understand JoZi and CT, so I stick to what I know.
Hi there, i know im not Louis but i think i have an idea.
It depends on which part of Cape town you're looking at. If you look at places like Camps bay , Bantry bay , Clifton, Green point, The waterfront, Newlands upper, Constantia, Sea point just to name a few places, you will pay a lot for anything on these areas simply because of the amenities surrounding them. Places that are closer to the sea will cost more for obvious reasons and those that are closer to the mountains will cost a bit more. So if you want anything affordable you should look at places like Plumstead, The city center, Observatory etc.
So to answer your question as to why are properties expensive in Cape Town it because this is the most visited city in Africa 🌍, people all around the world go to Cape town for the landscape and the natural beauty Cape town offers. There are Winelands in Constantia which surprisingly draws a lot tourists, there's also the Tables mountain and the Lion's head which also draws a lots of tourists. That alone is enough to hike up the price just to make sure that only highly civilized individuals are in those areas, think about it, Cape town is the only city in the entire country that have more Asian people who own houses 🏘 in there. Most of the politicians live in there and many Investors from overseas have properties in Cape town, the Iron man house is the most expensive property in Africa and it's located in Cape Town in that affluent neighborhood that doesn't even have streetlights. Still have more to say but my thumbs are tired of typing 😂.. hope this would give you an idea, and im open to any sort of criticism, complaints, thoughts or suggestions. Thank you 😊
@@SCELO_MYEZA. thanks alot boet
This is great, maybe Louis should consider a few "colab" vids, as the community grows your bound to have people that have location specific knowledge, and it can be done quite easily. Send questions and ask the person to make a vid responding to the questions, vid edit copy and paste, and done
Great video!
Thank you for watching 🙏🏻 💪🏻
you should recommend some books for us to read to gain your knowledge, cool vid 👍🙌💯
I made a video about this long time ago.
The best book to start with is cashflow quadtant from Rich dad poor dad. 💪🏻i spent thousands on research from courses, mentors, Books and seminars so it took some time.
Also feel free to check out my coaching if it sparks your interest
BUY My Property Course here : payhip.com/LouisReynhardt
I learned a lot today👌🏾thank you
This makes me so happy. As long as you can Learn on my channel im glad 💪🏻💪🏻
So you flip properties? How long does it take to get it sold after the whole process from buying it?
No, I never sell them. I refinance them 💪🏻usually after 6 months
Love the content great work
Thanks for watching, hope you can share it with others that can also benefit. All the best 💪🏻
Thanks for the information
Pleasure my friend 🙌🏻 😎
Hi thank you so much for your videos. I have a question not related to this video. Do you know any brokers that i can use to day trade stocks such as tesla. I live in south africa and essyequities is not helping to day trade. Also what do you think about infinox broker. Plz help
Thanks for watching, my friend. EE is more focussed on longer-term investing.
You can sign up for Brokstock. Low fees and awesome interface. You. Can use my link to sign up. Check it , out, it's for free. It also has quite a few cool tools and insights you can use. Let me know what you think
Unfortunately, I can't comment on the platforms you mentioned. I haven't used them before. Hope this helps.
app.adjust.com/16u45nv8
Hi, in 6:50 - Please explain “after 6-12 months, I would refinance the property to get access to the R400k equity” ? Thanks
This is something I cover in my course. To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration process. Don't miss out on this opportunity to get Early bird discount
Use the coupon code : EARLYBIRDCOMBO to get 10% Discount on the Mentoring option.🤑
Use the coupon code : EARLYBIRD to get 20% Discount on the Full course.🤑
Or check out this video where I explain the refinancing process a bit more.
ruclips.net/video/P64KVoWqkC4/видео.htmlsi=DsPhXeIRsegsBW3T
I'm in the process of buying my first home, and wow I feel so overwhelmed😢
Take it easy. check out my property playlist. The info will help you during your process. All the best
What to you is a bargain property. To me a bargain property is a property price below market price. The IRR must be 55% over a period of 5 years.
Great tip, if you can buy it a 10-20% discount. that's a pretty good starting point. IRR, in my opinion, should be infiinte because none of my own money will be used. As long as it can cash flow or have a large equity position.
How long should one wait to jump into another property after buying one? I jusy bought a property which was registered in last month.
Depending on your structure and your strategy, you should. Be able to buy again shortly after your property has registered. Depending on your credit score and affordability. 💪🏻
What's up Sunday it's guys here 😂😂😂😂 nice intro 😅😅😅
😁😁😁🙌🏻
when you say"rental amount devided by property price" how do you add/equate levies and forwever increasing munincipal service & taxes in the rental?
Great question, but that is a completely different calculation. You will use ROI or IRR to make those calculations.
How do you figure out if you can convert a property into a student accommodation or not? Who do you speak to?
It needs to comply with the regulations of student accommodation. This requires some specialized knowledge. Feel free to pop me an email at louisreynhardt@gmail.com 👊🏻
Thank you mu bro..
Huge pleasure my friend 🙌🏻😎
What’s the minimum amount of cash flow needed realistically to start this type of business
Difficult qestions to answer. You can do a pre aproval with a bond originator to get a ball park number
@@louisreynhardt which bond originator do you recommend
Love your content bro.
Thanks a lot my friend. Appreciate the feedback 🙏🏻
Insightful
Thank you for watching 🙏🏻
Please explain how is it that you buy the property at lets say R1m and get it registered at R1.3m?
The R1.3m will be its highest value. It still needs to be realistic and within reach to what the market is selling for. You simply buy something for cheaper than its worth and fix it up a bit to refinance it at a higher price later on. Its called forced equity
So.. How do you register a prop higher than the purchase price? The transfer (lawyers) would reg on the purchase isn't it?
Great question. This is something you have to discuss with your bank before instructions are sent to the attorneys. I will be covering this in the upcoming course 💪🏻
HI would you recommend a foreigner from Asia invest in properties in South Africa?
Absolutely, property in SA is very affordable and has a lot of opportunities. You just NEED to make sure you are aware of all the tricks and trades. You can always consider my property course or pop me a email at louisreynhardt@gmail.com 💪🏻💪🏻
To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration process.
Keep up the good work 🎉
Thanks a lot man, appreciate it 😁 🙏🏻
I was told buying a property that's been reduced means people do not want it, and could be due to maybe issues around the area, or something like that.
That can be true in some cases. But prices are mostly determined by suply and demand. Most people going through financial hardship can even sell perfect properties for cheap .
Brilliant
Thanks my friend 👊🏻 😁
How does tpn work
It's a website you can use to pay for certain services. It's a great tool to have in your arsenal. They have videos on youtube of how it works or just go on the website and browse around. You should be able to figure it out.
❤
🙏🏻🙏🏻
Just what I need
💪🏻💪🏻💪🏻
What does the total once off price mean? Do you have to pay that right away
Do you refer to the once off transfer and registration cost or the cost of the property?
whatsup sunday its guys here lol
Yeaahh buddy 🤣🤣🤣
Whatsup Sunday its guys here 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
🤣🤣🤣🤣
Buy property in South Africa?? No thanks.
You dont have to if you don't want to. 💪🏻 luckily theres always different options available. Where are you investing then?
Ek Kort Bietjie Raad Daar will email you
100% stuur sommer vir my epos aan 💪🏻💪🏻
Hello Louis, I love your content Sir and I stay in Westdene, may you please share your email as I'd like to email you. Thanks again Louis
Thanks for supporting the channel.
Sure you can pop me an email at louisreynhardt@gmail.com 👊🏻 😉
Thanks again man👍