@@louisreynhardt so it’s specifically coaching in looking for if you have such programmes and not investing with you as such. Eg I want to know hurdles I can expect and possible costs when buying to renovate and multiple let. Basically I need someone who’ll guide me at a fee of course
@@louisreynhardt I would like to recommend this for my wife, I always thought she's very good when it comes to selling and paying attention to customers needs. If you see how she's passionate, you'll like her persona. This courses will be good for her
@anjozeeman6267 thanks for sharing your opinion. If you dont factor in the deposit and Transfer cost, im right on par with my budgeting. The cash flow more than allows these costs.
Please show us all the financials when it comes to the renovations and tell us about how you ensure to save money when it comes to renovating. Love your videos its very clear, concise and educational!
I have a similar house in North West, a 10 bed and 10 bath house with a big yard. I’m looking at buying a second house and do the same. This thing works. Thanks for your videos Rey
You do business the way I do business. I'd rather buy land and build flats with R1m that will make 20k than a town flat that will generate 8k a month. My friend I like the way you do business
Hi, Clinton, this is Louis. Great video! I can't wait to see the final results. I specifically would like to see how you deal with the plumbing (water pressure with so much demand) and the electricity demand. I love all your videos!
Thanks for watching my friend. Appreciate the support. We will add a larger geyser and apply prepaid meters for the water and electricity. The plumbing will have to be serviced more often, but its part of the game
Do the students all share in the prepaid electricity equally or does each room have a seperate meter? Will they share bathrooms and the kitchens? How will you manage water expenses? Per person equally or including as part of rent?
In total you will have 4 different tenants renting from this property. My experience is they all want their own privacy. Do not mix old couples with young students. You do not mention parking for all these tenants. Ensure they all have their own separate entrance. Maybe consider a small braai area for every tenant with a separating wall between them. How are you going to handle the utility bill? Carpets and tenants do not work, need to replace with something else. The plumbing definitely needs to be replaced - old and rusty pipes. Best is to do away with galvanised pipes. Most important will your cash flow be positive or negative after paying the bond, utility bill and insurance? Renovation cost is going to be high because bathrooms and kitchens eat the money.
Spot on! your questions and suggestions are exactly how i would approach it. Worst thing is to turn property into a congested compound with too many tenants on top of each other and every month its complaints about noise parking visitors etc…i would say given the land space i would aim for two tenants each with separate entrance. Could be two families they tend to stay longer esp if area schools are good… as suggested some green space decent landscaping and could still fetch R25,000 or so for Bloemfontein and what u paid and renovated for thats a good return. Quality over quantity is the mantra! Best wishes you are doing a great job
Great content always, looking forward to financial breakdown, especially the rezoning. Did take your course, still struggling to find good deals, it's either the market value is low or the place is expensive when I run the numbers. Would appreciate it if I can get a chance to pitch to you my plan and advice me as such on what am I doing wrong. Keep up the good work
Different municipalities no doubt have different rules. I am curious though if you need to get the property rezoned when increasing the number of rooms as you have. Also I assume off street parking a must? Regards
A freehold title in Bloemfontein can house up to 20 people if im not mistaken. But you need special consent, or you need to rezone to be able to legally do so. Also this property has enough space for around 6 cars but most students dont own any vehicles.
There is a bit of complexity to the answer and process. You are not required to submit internal changes to the council, but the moment you add/remove windows or outside doors a new roof, change the use of a room, like the garage to a bedroom, close in a veranda to make it bedroom , add additional rooms to the existing dwelling, alterations to the outside facade of the house, then you have to submit those changes to the council for approval before you can build or they would be as-built after the fact.. As long as you are using the house as a residential dwelling and you will be living thier or renting it out to a person, a family you do not need to re-zone the property or get written consent from the council because their is primary rights that apply to you as property owner, just building plans need to be submitted for approval.. Note: when you change an existing dwelling into individual units with their own kitchens, bathrooms and entrances that is no longer a dwelling unit and that puts you of the residential zonig.. You can convert a existing dwelling into a student accommodation, but you can only use max 5 bedrooms with a shared/communal space with a kitchen, lounge or dinning room.. If the rooms are double bedroom size, that are 14sqm or bigger then you can house 2 student per room, meaning you can have 10 students living on property, with 1 parking bay per 2 students.. You don't have to re-zone to establish student accommodation in an existing dwelling, but you have to let the council know of the intention, you have to fall into spatial development framework of the area and you have to follow the BY-LAW on student accommodation and go through the process of establishment with the local authority(council) Now, if you want to build individual rooms/units with their own kitchens and entrances, that is when a re-zoning comes into play and that requires 3 steps, Townplanners to re-zone, Site development plan, fire plan and Building plans to be submitted for approval and the property has to be minimum of 3000sqm..
@@louisreynhardt With regards to parking, across the whole of SA, you have to provide X amount of parking regardless if the person has a car or not, it is another development control the council uses to be prevent over development of a property or we end up like the UK where you are forced to park on the street.
Bro you on another level. i would love to see the renovations, cost and maybe a breakdown on rentals and how youl do it. otherwise i love the new style of videos showing us how its done live. great mentor
Hi Louis, great buy well done. I would like to see the breakdown on the cost of renovation, please. I just bought a fixer up in Cape Town, and I feel overwhelmed by the work needed. My house is similar to that one. Sharing the costs will give me a rough amount I need to save up and ideas. Thank you.
Absolutely, I will be sharing more details as we progress. I will update you guys with the next few videos and will try my best to document everything 💪🏻💪🏻
Thanks for the video Louis, would love to see the financials of the cost of the refurb on your next one... thanks again for the content please keep it up! :)
thanks for the video, would love to see all the renovations costs, and break down of the income & expenses, and will you have some one managing the students as well?
And I would also like your advice! I bought a house in Kempton Park 2019 for around R1,1m with the intention to stay there but due to Covid my small hustles closed down but also my wife was traveling from KP to Centurion for work. We then decided to rent out the house and go back to Centurion. Now we're in between selling the house and continuing renting it out. What would be your advice? Also bare in mind that I'm so much interested in property development business hence I like and watch your shows so much
To change a single residential property to a multi let or student accommodation, do you need to reregister to property from Res 1 to Res 3 or something else?
You will have to check with your Muncipality, but you will have to get special consent from your Muncipality or Re zone depending on the amount of people you want to house
Not sure if your property is affected but curious to find out if you’d buy a similar property with a sewer servitude of around 1,8 m on the boundary wall
Building is the problem. It’s a 4bedroom 2 bath with 2 cottages which are quite sizable and will generate a good income, however I do still have a large area near the sewer servitude that I’d like to us for building, worried it might not be viable
@@louisreynhardt ok. So what you saying is when building walls inside the house. No need to adjust the building plan? Example. Closing rooms with walls?
Hey Louis great video. May I ask why are the advantages and disadvantages of owning your property under a trust as compared to a CC or PTY LTD even Co-Operative. Thanks
There is a huge need for young professionals to house share. In this instance some specific need must be met. Student accommodation with all sorts of added fees puts your property at the bottom of the selection pile.
Thanks for the share. My biggest concern is how to handle the tax on the income. When it comes to paye, and tou have to answer the question, do you receive any rental income....
How are you going to get to R45kp/m? 5 students at R9k p/m or 9 students at R5k per month? We have a zoning by-law where I live that says "no more than 5 unrelated people are allowed to stay on the erf." I'm assuming that's not an issue with this places zoning? Are you adding more bathrooms? 2.5 bathrooms is a lot to split between 9 people.
Great questions, I will be answering them in my coming video series. There will be an extra full bathroom added so that based on the requirements, it will work. Also, an extra geyser for the additional capacity. Thanks for watching 💪🏻
Is the Zoning in place, are the plans in place, do you have a Spluna certificate? If that is not in place the insurance will not pay out if there are a fire 🔥
Hey Louis ! Louis here.. I just got a question regarding zoning. Is there a limit to how many rooms you would use to rent because of zoning laws? Or do you just do your thing and then update the zoning on your property after renovations? Thanks! I love te videos!
Great question Louis 😂, not really a limit to the rooms specifically ( obviously the house itself can only accommodate a certain number of students), but the zoning is important because you have restrictions from the Muncipality. In this case, we will do special consent in the meantime and eventually re Zone if we house more than the allowed students. Unfortunately, it takes very long to do anything with the Muncipality
Absolutely , you just need to know the demand in your area. This is something I cover in depth in my course. Let me know if you would like to find out more. Or just check out my property playlist on YT
Hi you look just like a guy I used to work with his name was Renier I'm sure he is your brother .he was a great guy and taught me a lot .we worked for waterproofing company in Capetown
Thanks Louis! Look forward to the next install on this one, specifically the calcs on finances: the property is bonded as you said, what are the monthly repayments on this, plus other monthly expenses (maintenance. etc) = what is your NET income pm from this specific project? Cheers!
Love your practical videos! So helpful and informative. Video suggestion, please could you do a video for SA expats who want to have property investments in SA. Thanks in advance
Love the video! Are there laws regarding the maximum amount of people that may live on a premises in neighborhoods like unversitas? Or could you house as many people as what the the property can accommodate comfortably? Thanks!
Great question, There are laws in place, and they are there for a reason. They are also a bit different in every city, but in order for me to do this, I need to get special consent from the Muncipality to turn it into a Commune. This also ends up costing around R50k
Yes there is, you can convert a existing dwelling into a student accommodation, but you can only use max 5 bedrooms with a shared/communal space with a kitchen, lounge or dinning room.. If the rooms are double bedroom size, that are 14sqm or bigger then you can house 2 student per room, meaning you can have 10 students living on property, with 1 parking bay per 2 students..
How did you purchase your first property? Under your name? Or? The bank won't accept my application under the -Startup company with no financials unless its commercial. Any advise.
@@louisreynhardt maybe I'm not explaining it to them correctly, coz Standbank won't let it happen unless it's Commercial property, nd still talking about they need two years financials. I really don't want it in my name. And really struggling with that.
What are bylaws you have to adhere to, to ensure the student house is legal, for example is rezoning required, is there a limit on the amount of kitchens allowed, do you have to submit plans for internal renovations etc. Also how do you plan to get rid of non paying tenants?
There is a bit of complexity to the answer and process. You are not required to submit internal changes to the council, but the moment you add/remove windows or outside doors a new roof, change the use of a room, like the garage to a bedroom, close in a veranda to make it bedroom , add additional rooms to the existing dwelling, alterations to the outside facade of the house, then you have to submit those changes to the council for approval before you can build or they would be as-built after the fact.. As long as you are using the house as a residential dwelling and you will be living thier or renting it out to a person, a family you do not need to re-zone the property or get written consent from the council because their is primary rights that apply to you as property owner, just building plans need to be submitted for approval.. Note: when you change an existing dwelling into individual units with their own kitchens, bathrooms and entrances that is no longer a dwelling unit and that puts you of the residential zonig.. You can convert a existing dwelling into a student accommodation, but you can only use max 5 bedrooms with a shared/communal space with a kitchen, lounge or dinning room.. If the rooms are double bedroom size, that are 14sqm or bigger then you can house 2 student per room, meaning you can have 10 students living on property, with 1 parking bay per 2 students.. You don't have to re-zone to establish student accommodation in an existing dwelling, but you have to let the council know of the intention, you have to fall into spatial development framework of the area and you have to follow the BY-LAW on student accommodation and go through the process of establishment with the local authority(council) Now, if you want to build individual rooms/units with their own kitchens and entrances, that is when a re-zoning comes into play and that requires 3 steps, Townplanners to re-zone, Site development plan, fire plan and Building plans to be submitted for approval and the property has to be minimum of 3000sqm..
Considering what Louis is trying to accomplish, he will thus need to 1)Submit the changes to the council for the change of the garage. This will probably take some time for approval. What is the risk is you build first and then submit the changes? 2) The garage will also have a kitchenette, is this considered to be a full kitchen thus requires rezoning? 3) Louis shows 3 bedrooms and then wants to convert the living room into another 3 bedrooms, the garage will also have 3 bedrooms thus theoretically a total of 9 tenants,maybe 10 depending on what is possible with the double bedroom. 4) You stated there is allowance for max 5 bedrooms, thus will Louis have to rezone or is there ways around it?
@@Mister_JB_yep Again, there is tiers of complexity to this kind of thing, this is just basic feedback, it also long winded 🤣.. 1. Depending on the council, you can get approved plans within 14 working days to a few months for approval.. (take a guess who the 14 day council is :D ) SANS 10400 covers approval times, plans under 500sqm should take 30 working days and plans over 501sqm plus should take 60 working days, so councils do have a buffer for approvals, but you are at the mercy of the staff so it can take longer.. Building first and then submitting later is called an as-built, it not the right way, but the councils do allow you to make right and submit those changes after the fact to make it legal, whether you are within the rights and scheme of the council that is another question.. The other cost that does come up, because the council was not on site to inspect the changes from the approved plans, they tend to ask for an engineer to sign off and take responsibility for the as-built changes/ structure.. You can not use the internal changes as a loophole to convert the house into individual rooms with own entrances, a church, business etc. internal changes is more like breaking a wall down to have an open plan layout, make bedroom bigger, move a internal door, add a internal door, build new rooms things like that within the footprint of the existing dwelling and keeping the same use.. 2. You can have a kitchenette over and above the kitchen in a house, it depends on the layout of it, how big it is, how it looks inside the house, you can have it in the entertainment veranda/braai area , prep, private Chiefs kitchen, traditional kitchen, upstairs down stairs you might have to motivate it to why you want it because the town planners and building inspectors are trained to ask those questions will look at it like you want to convert it into another house or flat, again complexity.. The rezoning also depends on what the scheme or the zoning certificate of the property says, so you could have 1 dwelling per ERF or you could have 1 dwelling per 1000sqm, you can have 1 dwelling and then 2nd dwelling of X amount of square meters without rezoning, you may have to do a request with the council, consent use or written consent application or employees accommodation, no kitchen though, then the dude has to clean the house or the garden 😁 .. But the moment you go and divide the house up into individual rooms with their own entrances you are now deviating from the scheme and are now building dwelling units which you do not have the rights. 3. There is 2 tiers to this question. Firstly, You can also have a single bedroom for 1 student at minimum of 6sqm (but the student accom. by-law would like a room of 8sqm) for that room.. This will also answer 4.. The 5 bedrooms applies to establishing of a student accommodation in an existing residential dwelling, where by you can house 10 students in 5 double bedrooms (14sqm per room) or 10 students in 10 single bedrooms (8sqm per room), but for you to use an existing dwelling there is a few aspects that you have to meet, All rooms must still be within the house and have access into the house, you have to provide a dedicated kitchen where the students can cook (no cooking allowed in the rooms), also have to provide common area for the students to hang out/study, like a lounge, dining room or entertainment area, and that has to be 2sqm per student, so 20sqm room.. Also need to provide 2 full bathrooms for 10 students as only 5 students are allowed to use 1 bathroom.. You also have to have a contract and be registered with the university as an accommodation provider - For this you just have to approach the council inform them, submit the consent use/rezoning and plans for approval. Single student flats/ dwelling units, this requires a re-zoning right off the bat as you are now increasing the units on the property from 1 dwelling to basically 10 dwelling units even though you have used the houses footprint, you have now made individual units with their own access points, bathroom and kitchens,, however the double and single bedroom's square meters still applies as well.. There is also a communal residential commune, where you have individual room but still have a shared common area, bathrooms and kitchens. This is not an accurate representation of the whole process and what needs to happen, one would need to get all the information and what the owner requirements are, the amount of students, rooms and what he would like out of the process at the end of the day, you will also need the zoning certificate and copy of title deeds and then to do your due diligence with the council..
how do you manage your student rentails? are there specific management agencies that you recommend? I know some landlords struggle with bursars, nsfas and scholaraships that dont pay or pay lump sums sporadically.
I use a company that manages students only. Your cash flow for these properties needs to be really good because, unfortunately, there are delays with payment. It's also different in different areas.
Hi Louis, you mentioned that this property is in one of your trusts. I'm looking at buying a property and was wondering if I should buy it through a trust or through my business. I don't pay myself enough salary to buy a property in my personal capacity. As far as I understand, a trust is quite expensive and when selling a property that is business-owned, you lose out on the profit because of capital gains tax. Looking forward to your feedback.
Hi, I understand that this student commune will bring you 45k in monthly but can you also share the monthly expenses? As in, how do you navigate around the electricity and water that you provide for the students. Internet access, cleaning/maintenance of the property and so on. Thank you
Great suggestion, i will share all these details in the coming series as we progress. Ill try to be as transparent as possible. Thanks for the support.
Hey Louise, congrats! on the new purchase. Im new around here, If you don't mind kindly walk me through your calculations on how you ended up with the 45K pm Gross figure. Thanks!🙏
I dont do Partnership at the moment because I prefer owning 100% of the investments. But maybe in the future I will consider this . Thanks for watching 💪🏻
Hey guys... it's Louis 😂, I'd like to buy your book do you have any book written yet, oh I'd like to see how know how you find your houses like websites to scout
Thanks man, I dont have a book but I do have a online course that people really like. It should answers most of your questions Check out this link : payhip.com/LouisReynhardt
I have a question sir, this is a 3 bedroom house which will accommodate 3 students/people and you say it will generate 45k per month...are these students really going to rent a basic property for 15k per month?
There is a elephant in the room that needs to be adressed.You are aware that if a person rents out a room/property to a person who does not have the correct paperwork to be in the country this can lead to a hefty fine.Prospective tennants needs to be vetted.
Absolutely, I will not be renting out illegally. We follow all the steps and procedures and abide by all the regulations to legally and safely house students.
Advise on the breakdown of how you get to the R45k income. What is the expenses also? If its a student house, is income only for 9 months of the year? How/where do you get the students/renters?
For Serious Investors only : payhip.com/LouisReynhardt
@@louisreynhardt so it’s specifically coaching in looking for if you have such programmes and not investing with you as such. Eg I want to know hurdles I can expect and possible costs when buying to renovate and multiple let. Basically I need someone who’ll guide me at a fee of course
@@louisreynhardt I would like to recommend this for my wife, I always thought she's very good when it comes to selling and paying attention to customers needs. If you see how she's passionate, you'll like her persona. This courses will be good for her
You already over spent on that project.
You need way more then passion. To make success of student
accommodation. I am doing it Cape Town. I am builder and project manager.
@anjozeeman6267 thanks for sharing your opinion. If you dont factor in the deposit and Transfer cost, im right on par with my budgeting. The cash flow more than allows these costs.
"what's up louis, it's guys here..."🤣🤣🤣🤣
Whatzupppp 😂🤣🤣
i also heard that hahaha
This should become your normal greeting, sir.
Perfect branding opportunity
If you know then you know haha.
@@kurtcampher4716 It is his normal greeting
I did the same on one of my property.
And I make around the same amount.
Congratulations on your new purchase
Well done, thanks for sharing 👊🏻 💪🏻💪🏻
Can you give info on rezoning of the property and the rules and paperwork needed from the munisipaliteits and tax consequences please
@@louisreynhardt Which part of JHB South did you buy your property?
@believe7088 you'll probably have to buy a course for that info unfortunately....
Please show us all the financials when it comes to the renovations and tell us about how you ensure to save money when it comes to renovating. Love your videos its very clear, concise and educational!
Great Idea!
I will share all the details in another video when I get to that part. Thanks for supporting the channel 💪🏻
Loving your channel Louis
Bro, you are so real and your content says so. I appreciate the tips
Means a lot my friend. Thanks for watching 💪🏻💪🏻
I have a similar house in North West, a 10 bed and 10 bath house with a big yard.
I’m looking at buying a second house and do the same. This thing works. Thanks for your videos Rey
Well done, thanks for sharing. Good luck with securing the next one 💪🏻💪🏻
You do business the way I do business. I'd rather buy land and build flats with R1m that will make 20k than a town flat that will generate 8k a month. My friend I like the way you do business
Well done. Thanks for sharing. Appreciate the support my friend 💪🏻💪🏻
Can't wait to see part 2... Bro you're HIM indeed 🐐📍🇿🇦
Excited to share the progress. Thanks for watching 💪🏻💪🏻
Hi, Clinton, this is Louis. Great video! I can't wait to see the final results. I specifically would like to see how you deal with the plumbing (water pressure with so much demand) and the electricity demand. I love all your videos!
Thanks for watching my friend. Appreciate the support. We will add a larger geyser and apply prepaid meters for the water and electricity. The plumbing will have to be serviced more often, but its part of the game
Do the students all share in the prepaid electricity equally or does each room have a seperate meter? Will they share bathrooms and the kitchens? How will you manage water expenses? Per person equally or including as part of rent?
In total you will have 4 different tenants renting from this property. My experience is they all want their own privacy. Do not mix old couples with young students. You do not mention parking for all these tenants. Ensure they all have their own separate entrance. Maybe consider a small braai area for every tenant with a separating wall between them. How are you going to handle the utility bill? Carpets and tenants do not work, need to replace with something else. The plumbing definitely needs to be replaced - old and rusty pipes. Best is to do away with galvanised pipes. Most important will your cash flow be positive or negative after paying the bond, utility bill and insurance? Renovation cost is going to be high because bathrooms and kitchens eat the money.
Thanks for taking the time to share your experience and adding value to the comments. Keep it up 💪🏻
Spot on! your questions and suggestions are exactly how i would approach it. Worst thing is to turn property into a congested compound with too many tenants on top of each other and every month its complaints about noise parking visitors etc…i would say given the land space i would aim for two tenants each with separate entrance. Could be two families they tend to stay longer esp if area schools are good… as suggested some green space decent landscaping and could still fetch R25,000 or so for Bloemfontein and what u paid and renovated for thats a good return. Quality over quantity is the mantra! Best wishes you are doing a great job
im working on the same business model here in Botswana🇧🇼. As much as it doesn't sound logical. its a working business model.
This is brilliant Louis.. looking forward to seeing the renovations😊
Thanks for watching. Looking forward to share it 💪🏻💪🏻
two to three years ill god willing jump into something similar thanx for sharing the start of this properties journey.
Good luck my friend. Thanks for watching 💪🏻💪🏻
I'd love to see part two with renovations and a breakdown of how much it cost...i love property investing.
Absolutely, as the project goes on I will update you guys. I will be investing a lot of time and money yo document the journey for my followers 💯 💪🏻💪🏻
You've mastered this sh*t! 🔥
Always learning my friend. Thanks for watching 💪🏻
@@louisreynhardt I'm definitely gonna join your mentorship some day. Still getting a few things together, you're a huge inspiration.
You inspire me a lot ey! I hope to meet you one day! Keep up the great work!
Thanks , appreciate the positive feedback. Looking forward to it🙏🏻 💪🏻💪🏻
It’s a perfect opening …so unique ..keep it like that
Thanks for the positive feedback 🙏🏻 😀
Awesome video. Worth the watch. Big thumbs up.
Thanks for the support 🙏🏻 🙌🏻
Interesting stuff! 🙌👏👏👏Think Im gonna need that course. I have to get started💪
Please could you show the layout of your floor plan after the renovation. And will you be marketing your accommodation via the nsfas scheme?
Sure, Ill share that in the next videos. This will be a NSFAS house 💪🏻
Great content always, looking forward to financial breakdown, especially the rezoning. Did take your course, still struggling to find good deals, it's either the market value is low or the place is expensive when I run the numbers. Would appreciate it if I can get a chance to pitch to you my plan and advice me as such on what am I doing wrong. Keep up the good work
Excited to see the progression on this! Can you please also share how you calculated your gross yield?
I LOVE THAT "WHAT'S UP LOUIS, IT'S GUYS HERE"😂😂
Appreciate the support 🙏🏻 🙌🏻 💯
Different municipalities no doubt have different rules. I am curious though if you need to get the property rezoned when increasing the number of rooms as you have. Also I assume off street parking a must? Regards
A freehold title in Bloemfontein can house up to 20 people if im not mistaken. But you need special consent, or you need to rezone to be able to legally do so. Also this property has enough space for around 6 cars but most students dont own any vehicles.
There is a bit of complexity to the answer and process.
You are not required to submit internal changes to the council, but the moment you add/remove windows or outside doors a new roof, change the use of a room, like the garage to a bedroom, close in a veranda to make it bedroom , add additional rooms to the existing dwelling, alterations to the outside facade of the house, then you have to submit those changes to the council for approval before you can build or they would be as-built after the fact..
As long as you are using the house as a residential dwelling and you will be living thier or renting it out to a person, a family you do not need to re-zone the property or get written consent from the council because their is primary rights that apply to you as property owner, just building plans need to be submitted for approval..
Note: when you change an existing dwelling into individual units with their own kitchens, bathrooms and entrances that is no longer a dwelling unit and that puts you of the residential zonig..
You can convert a existing dwelling into a student accommodation, but you can only use max 5 bedrooms with a shared/communal space with a kitchen, lounge or dinning room..
If the rooms are double bedroom size, that are 14sqm or bigger then you can house 2 student per room, meaning you can have 10 students living on property, with 1 parking bay per 2 students..
You don't have to re-zone to establish student accommodation in an existing dwelling, but you have to let the council know of the intention, you have to fall into spatial development framework of the area and you have to follow the BY-LAW on student accommodation and go through the process of establishment with the local authority(council)
Now, if you want to build individual rooms/units with their own kitchens and entrances, that is when a re-zoning comes into play and that requires 3 steps, Townplanners to re-zone, Site development plan, fire plan and Building plans to be submitted for approval and the property has to be minimum of 3000sqm..
@@louisreynhardt With regards to parking, across the whole of SA, you have to provide X amount of parking regardless if the person has a car or not, it is another development control the council uses to be prevent over development of a property or we end up like the UK where you are forced to park on the street.
@@Cent51very good advice and thanks for sharing. Are you an architect?
Hi Louis, I'm a big fan of your work. keep it up...great staff..💯
Thanks a lot. Appreciate the support 💪🏻💪🏻
Great video Louis thanks for sharing this😊 Look forward to the transformation
Thank you so much for watching 💪🏻💪🏻
Very good content best advice " allways have an exit plan "
1000% thanks for watching 💪🏻
Great video 🙌🏾🙌🏾. Truly an inspiration 🥹
Thanks for the support my friend 🙏🏻
Bro you on another level. i would love to see the renovations, cost and maybe a breakdown on rentals and how youl do it. otherwise i love the new style of videos showing us how its done live. great mentor
Thanks my friend. Appreciate the support. Will do this in the next few videos about this property. Will vreate a mini series with all the details.
Can’t wait to see updates!
Looking forward to sharing it 💪🏻💪🏻
Can you explain what the discount equity is used for and why u need a discount
You dont need it. Its just beneficial. It means you are buying something for cheaper than its worth.
To get a property for that amount in Univesitas is a bargain. Well done 🎉
Thanks , it took a while, but persistence is key 🔑
Shout out bro very informative
Thanks for watching 🙌🏻🙌🏻
would be nice to see a video of all the renovations done.
Coming up . Thanks for watching 💪🏻
Hi Louis, great buy well done. I would like to see the breakdown on the cost of renovation, please. I just bought a fixer up in Cape Town, and I feel overwhelmed by the work needed. My house is similar to that one. Sharing the costs will give me a rough amount I need to save up and ideas. Thank you.
Absolutely, I will be sharing more details as we progress. I will update you guys with the next few videos and will try my best to document everything 💪🏻💪🏻
Thanks for the video Louis, would love to see the financials of the cost of the refurb on your next one... thanks again for the content please keep it up! :)
Thanks for watching. Absolutely, I will be sharing more of the details in the coming series of this property.
How do you circumvent the zoning laws and by laws?
You have to rezone with the Muncipality and pay them unfortunately
thanks for the video, would love to see all the renovations costs, and break down of the income & expenses, and will you have some one managing the students as well?
Absolutely, I will make a video about this and explain more about the details an knitty gritty stuff. And yes I use a managing company 💪🏻
I like your videos Bro! We learning here.
Thank you, appreciate the comment 🙏🏻
And I would also like your advice! I bought a house in Kempton Park 2019 for around R1,1m with the intention to stay there but due to Covid my small hustles closed down but also my wife was traveling from KP to Centurion for work. We then decided to rent out the house and go back to Centurion. Now we're in between selling the house and continuing renting it out. What would be your advice? Also bare in mind that I'm so much interested in property development business hence I like and watch your shows so much
Please explain how you were able to buy the property at a discount...
I will share more on this in upcoming videos, but simply put, find distressed buyers and make low offers
To change a single residential property to a multi let or student accommodation, do you need to reregister to property from Res 1 to Res 3 or something else?
You will have to check with your Muncipality, but you will have to get special consent from your Muncipality or Re zone depending on the amount of people you want to house
Not sure if your property is affected but curious to find out if you’d buy a similar property with a sewer servitude of around 1,8 m on the boundary wall
It's not the case with mine. What is your biggest concern ?
Building is the problem. It’s a 4bedroom 2 bath with 2 cottages which are quite sizable and will generate a good income, however I do still have a large area near the sewer servitude that I’d like to us for building, worried it might not be viable
What does need work is your concealed carry skills. At least its a CZ, so that's something
Good eye, in public its a different story.
The changes you are making on the property. Do they have to be om your building plan
No, they will al be done jnside the house so we wont be building or expanding at all.
@@louisreynhardt ok. So what you saying is when building walls inside the house. No need to adjust the building plan? Example. Closing rooms with walls?
@benjaminbarnett1458 you will have to consult and confirm with your town planner but as far as I know its not necesarry
@@louisreynhardt Thanks!
Hey Louis great video. May I ask why are the advantages and disadvantages of owning your property under a trust as compared to a CC or PTY LTD even Co-Operative. Thanks
Great question
I think to make it easier , check out this video I made
ruclips.net/video/Ggym4H_CL7Y/видео.htmlsi=yyorjas2c_BtKRVm
@@louisreynhardt Thanks much appreciated.
How many students would stay there at the same time? Curious how much rent each must pay.
There is a huge need for young professionals to house share. In this instance some specific need must be met. Student accommodation with all sorts of added fees puts your property at the bottom of the selection pile.
Absolutely, what area are you in and where do you see this opportunity? Thanks for sharing
Thanks for the share. My biggest concern is how to handle the tax on the income. When it comes to paye, and tou have to answer the question, do you receive any rental income....
You dont have to stress too much about taxes. If you pay taxes, you know you are making money
Wow I didn’t know that a garage can be converted into a room thanks for that 😮😮.
Absolutely 💪🏻 💯
How are you going to get to R45kp/m? 5 students at R9k p/m or 9 students at R5k per month? We have a zoning by-law where I live that says "no more than 5 unrelated people are allowed to stay on the erf." I'm assuming that's not an issue with this places zoning?
Are you adding more bathrooms? 2.5 bathrooms is a lot to split between 9 people.
Great questions, I will be answering them in my coming video series.
There will be an extra full bathroom added so that based on the requirements, it will work. Also, an extra geyser for the additional capacity. Thanks for watching 💪🏻
Hey Louis any advice on how to find tenents for properties I heard that real estate agents can help with this is that true.
Depends on your strategy, agents can help with rentals just make sure they sre worth the commission. Always vet your tenants properly
Is the Zoning in place, are the plans in place, do you have a Spluna certificate? If that is not in place the insurance will not pay out if there are a fire 🔥
Yes and yes. All these needs to be in place before running it as a comune. Thanks for sharing.
im busy with similar project but im not sure how am i going to get to 45k pm any guidance?
Awesome, thanks for sharing.
The only way is to increase your rent per tenant or increase the tenant amounts.
Hey Louis ! Louis here.. I just got a question regarding zoning. Is there a limit to how many rooms you would use to rent because of zoning laws? Or do you just do your thing and then update the zoning on your property after renovations? Thanks! I love te videos!
Great question Louis 😂, not really a limit to the rooms specifically ( obviously the house itself can only accommodate a certain number of students), but the zoning is important because you have restrictions from the Muncipality. In this case, we will do special consent in the meantime and eventually re Zone if we house more than the allowed students. Unfortunately, it takes very long to do anything with the Muncipality
Louis can i find something similar in Pretoria. I suck at finding property and this is the type of property i want. I don't like apartments
Absolutely , you just need to know the demand in your area. This is something I cover in depth in my course. Let me know if you would like to find out more. Or just check out my property playlist on YT
Great video👍🏾 How to check the property value?
Thanks for watching. You can check out this video.
I use TPN ruclips.net/video/2tKzdo25ngw/видео.html
@@louisreynhardt Thanks, buddy!
Hi you look just like a guy I used to work with his name was Renier I'm sure he is your brother .he was a great guy and taught me a lot .we worked for waterproofing company in Capetown
Thanks for sharing and comparing me to a nice guy 💪🏻well done for being opened minded and willing to learn.
Louis the website showing the average cost of properties in different suburbs what is it called sir ? Please share
I use TPN 💪🏻
You can also consider Lightstone or property 24
What about zoning? Multi entrances? Is this legal?
Zoning is needed, 1 entrance is fine
There are different laws in different areas. Its important to know your area.
Ishhh.....the rental contract is now law.....the owners get it difficult with renters always right??
Its always been a legaly binding contract. Placing the right tenants is offcourse very important. Most beginners make these mistakes ye.
Great video Boss…please share the numbers and the property transformation
Will do ! Thanks for watching 💪🏻
How do you secure tenants? Everything you explained depend on filling it with decent tenants
Tenant vetting is the most important part. Being diligent and very specific is the best way to avoid unnecessary issues.
Thanks Louis! Look forward to the next install on this one, specifically the calcs on finances: the property is bonded as you said, what are the monthly repayments on this, plus other monthly expenses (maintenance. etc) = what is your NET income pm from this specific project? Cheers!
Thanks for watching and for sharing your suggestions. I will be posting an update about this property soon 💪🏻
Hi Louis do tenants do pay separately for water and electricity or is included in the rent?
Its included in their rent so eveyrone has a limited amount usage
@louisreynhardt So you put in 1 prepaid meter with an amount, and if that limit is reached, then it is between the tenants to sort it out?
Love your practical videos! So helpful and informative. Video suggestion, please could you do a video for SA expats who want to have property investments in SA. Thanks in advance
Thanks so much for watching. Great video idea. Ill look into it. Thanks again. 💪🏻
Love the video! Are there laws regarding the maximum amount of people that may live on a premises in neighborhoods like unversitas? Or could you house as many people as what the the property can accommodate comfortably?
Thanks!
Great question,
There are laws in place, and they are there for a reason. They are also a bit different in every city, but in order for me to do this, I need to get special consent from the Muncipality to turn it into a Commune. This also ends up costing around R50k
Yes there is, you can convert a existing dwelling into a student accommodation, but you can only use max 5 bedrooms with a shared/communal space with a kitchen, lounge or dinning room..
If the rooms are double bedroom size, that are 14sqm or bigger then you can house 2 student per room, meaning you can have 10 students living on property, with 1 parking bay per 2 students..
How much is the course?
You can check out the pricing here, theres a cew different options. payhip.com/LouisReynhardt
Howzit. What’s the process for getting students the come and rent? Do you do it through the university?
Yes I do. I will also elaborate a bit more in the next few videos about this property.
@@louisreynhardt Thanks.
How do you get to 45k? From 3-5 bedrooms?
Thats where the knowledge comes in. Will ne sharing the details in the next video 💪🏻💪🏻
@@louisreynhardt thanks
How did you purchase your first property? Under your name? Or? The bank won't accept my application under the -Startup company with no financials unless its commercial. Any advise.
Sure, the short answer is to sign surety for the Company and be liable for the debt.
@@louisreynhardt maybe I'm not explaining it to them correctly, coz Standbank won't let it happen unless it's Commercial property, nd still talking about they need two years financials. I really don't want it in my name. And really struggling with that.
@@benjaminbarnett1458 my advice would be to work with a Bond Originator instead.
@@louisreynhardtthanks
Great video
Thanks so much for watching 💪🏻💪🏻
What are bylaws you have to adhere to, to ensure the student house is legal, for example is rezoning required, is there a limit on the amount of kitchens allowed, do you have to submit plans for internal renovations etc.
Also how do you plan to get rid of non paying tenants?
There is a bit of complexity to the answer and process.
You are not required to submit internal changes to the council, but the moment you add/remove windows or outside doors a new roof, change the use of a room, like the garage to a bedroom, close in a veranda to make it bedroom , add additional rooms to the existing dwelling, alterations to the outside facade of the house, then you have to submit those changes to the council for approval before you can build or they would be as-built after the fact..
As long as you are using the house as a residential dwelling and you will be living thier or renting it out to a person, a family you do not need to re-zone the property or get written consent from the council because their is primary rights that apply to you as property owner, just building plans need to be submitted for approval..
Note: when you change an existing dwelling into individual units with their own kitchens, bathrooms and entrances that is no longer a dwelling unit and that puts you of the residential zonig..
You can convert a existing dwelling into a student accommodation, but you can only use max 5 bedrooms with a shared/communal space with a kitchen, lounge or dinning room..
If the rooms are double bedroom size, that are 14sqm or bigger then you can house 2 student per room, meaning you can have 10 students living on property, with 1 parking bay per 2 students..
You don't have to re-zone to establish student accommodation in an existing dwelling, but you have to let the council know of the intention, you have to fall into spatial development framework of the area and you have to follow the BY-LAW on student accommodation and go through the process of establishment with the local authority(council)
Now, if you want to build individual rooms/units with their own kitchens and entrances, that is when a re-zoning comes into play and that requires 3 steps, Townplanners to re-zone, Site development plan, fire plan and Building plans to be submitted for approval and the property has to be minimum of 3000sqm..
Thank you for the comprehensive answer!
I couldn't have answered it better. Thanks for sharing and adding real value to the comments.
Considering what Louis is trying to accomplish, he will thus need to
1)Submit the changes to the council for the change of the garage. This will probably take some time for approval. What is the risk is you build first and then submit the changes?
2) The garage will also have a kitchenette, is this considered to be a full kitchen thus requires rezoning?
3) Louis shows 3 bedrooms and then wants to convert the living room into another 3 bedrooms, the garage will also have 3 bedrooms thus theoretically a total of 9 tenants,maybe 10 depending on what is possible with the double bedroom.
4) You stated there is allowance for max 5 bedrooms, thus will Louis have to rezone or is there ways around it?
@@Mister_JB_yep Again, there is tiers of complexity to this kind of thing, this is just basic feedback, it also long winded 🤣..
1. Depending on the council, you can get approved plans within 14 working days to a few months for approval.. (take a guess who the 14 day council is :D )
SANS 10400 covers approval times, plans under 500sqm should take 30 working days and plans over 501sqm plus should take 60 working days, so councils do have a buffer for approvals, but you are at the mercy of the staff so it can take longer..
Building first and then submitting later is called an as-built, it not the right way, but the councils do allow you to make right and submit those changes after the fact to make it legal, whether you are within the rights and scheme of the council that is another question..
The other cost that does come up, because the council was not on site to inspect the changes from the approved plans, they tend to ask for an engineer to sign off and take responsibility for the as-built changes/ structure..
You can not use the internal changes as a loophole to convert the house into individual rooms with own entrances, a church, business etc. internal changes is more like breaking a wall down to have an open plan layout, make bedroom bigger, move a internal door, add a internal door, build new rooms things like that within the footprint of the existing dwelling and keeping the same use..
2. You can have a kitchenette over and above the kitchen in a house, it depends on the layout of it, how big it is, how it looks inside the house, you can have it in the entertainment veranda/braai area , prep, private Chiefs kitchen, traditional kitchen, upstairs down stairs you might have to motivate it to why you want it because the town planners and building inspectors are trained to ask those questions will look at it like you want to convert it into another house or flat, again complexity..
The rezoning also depends on what the scheme or the zoning certificate of the property says, so you could have 1 dwelling per ERF or you could have 1 dwelling per 1000sqm, you can have 1 dwelling and then 2nd dwelling of X amount of square meters without rezoning, you may have to do a request with the council, consent use or written consent application or employees accommodation, no kitchen though, then the dude has to clean the house or the garden 😁 ..
But the moment you go and divide the house up into individual rooms with their own entrances you are now deviating from the scheme and are now building dwelling units which you do not have the rights.
3. There is 2 tiers to this question. Firstly, You can also have a single bedroom for 1 student at minimum of 6sqm (but the student accom. by-law would like a room of 8sqm) for that room..
This will also answer 4..
The 5 bedrooms applies to establishing of a student accommodation in an existing residential dwelling, where by you can house 10 students in 5 double bedrooms (14sqm per room) or 10 students in 10 single bedrooms (8sqm per room), but for you to use an existing dwelling there is a few aspects that you have to meet, All rooms must still be within the house and have access into the house, you have to provide a dedicated kitchen where the students can cook (no cooking allowed in the rooms), also have to provide common area for the students to hang out/study, like a lounge, dining room or entertainment area, and that has to be 2sqm per student, so 20sqm room..
Also need to provide 2 full bathrooms for 10 students as only 5 students are allowed to use 1 bathroom..
You also have to have a contract and be registered with the university as an accommodation provider -
For this you just have to approach the council inform them, submit the consent use/rezoning and plans for approval.
Single student flats/ dwelling units, this requires a re-zoning right off the bat as you are now increasing the units on the property from 1 dwelling to basically 10 dwelling units even though you have used the houses footprint, you have now made individual units with their own access points, bathroom and kitchens,, however the double and single bedroom's square meters still applies as well..
There is also a communal residential commune, where you have individual room but still have a shared common area, bathrooms and kitchens.
This is not an accurate representation of the whole process and what needs to happen, one would need to get all the information and what the owner requirements are, the amount of students, rooms and what he would like out of the process at the end of the day, you will also need the zoning certificate and copy of title deeds and then to do your due diligence with the council..
how do you manage your student rentails? are there specific management agencies that you recommend? I know some landlords struggle with bursars, nsfas and scholaraships that dont pay or pay lump sums sporadically.
I use a company that manages students only. Your cash flow for these properties needs to be really good because, unfortunately, there are delays with payment. It's also different in different areas.
Hi Louis, you mentioned that this property is in one of your trusts. I'm looking at buying a property and was wondering if I should buy it through a trust or through my business. I don't pay myself enough salary to buy a property in my personal capacity. As far as I understand, a trust is quite expensive and when selling a property that is business-owned, you lose out on the profit because of capital gains tax. Looking forward to your feedback.
did the same with one of our properties ,#househack..welldone buddy.
Awesome. Thanks for sharing and for supporting the channel 💪🏻
Do you do any coaching?
Yes I do, you can check out this link 💪🏻💪🏻
For Serious Investors only : payhip.com/LouisReynhardt
Hi, I understand that this student commune will bring you 45k in monthly but can you also share the monthly expenses? As in, how do you navigate around the electricity and water that you provide for the students. Internet access, cleaning/maintenance of the property and so on. Thank you
Great suggestion, i will share all these details in the coming series as we progress. Ill try to be as transparent as possible. Thanks for the support.
Cape Town Prop is so expensive to the rest of RSA
Its crazy how inflated it is 🤯
How about the zoning
Very important question, i will be covering this in the upcoming videos 💪🏻
😂😂😂😂Fire your cameraman, he heard you call us Louis and just set there and enjoyed the ride
🤣🤣🤣🤣
What’s up Guys, thanks for sharing! Are we rolling OWB or IWB there? 😆
Thanks man.
IWB, normally you wont notice it but I had to focus on the video and not the carry 😅😂
@@louisreynhardt haha makes sense. That’s why I roll appendix, no unintended exposure.👌🏻
Hey Louise, congrats! on the new purchase. Im new around here, If you don't mind kindly walk me through your calculations on how you ended up with the 45K pm Gross figure. Thanks!🙏
Welcome to the channel my friend. I will be sharing these details in the upcoming series where I will keep you guys updated with the progress.
How did you get a trust without 45% tax in South Africa??
Please teach
The tax bracket is still 45% . Theres just ways to legally reduce your taxes.
How much is the bond 🔥🔥🔥🔥🔥
All the details coming up. Thanks for watching 💪🏻💪🏻
Do you do NSFAS?
Yes, I do and Privates
The best intro ever 😂😅
Thanks 🤣💪🏻💪🏻
Is there a way i can coinvest with you?
I dont do Partnership at the moment because I prefer owning 100% of the investments. But maybe in the future I will consider this . Thanks for watching 💪🏻
That greeting though, 🤣🤣🤣
🤣🤣🤣💪🏻
Hi can someone please explain how he will generate 45k p/m from a 6 bed??
Short answer multi let, ill be making a video about this specifically. 💪🏻
@@louisreynhardt thanks plz do
So we’re going to ignore the intro??😂
😂😂
Property at a discount? 😅Where do u find those dude?
🤣Not as easy as it might seem. But it comes down to making a lot of low offers and getting rejected 99% of the time but eventually the 1% accepts.
What’s up Louis it’s guys here ❤❤❤❤❤❤😂😂😂😂😂😂
💪🏻💪🏻💪🏻
"What's up Louis it's guys here" 😂😂😂😂
😂💪🏻💪🏻
@@louisreynhardt legendary.
How much are you charging per room?
Will be revealing the details in some of the next videos 🙌🏻💪🏻💪🏻
What effect will the crackdown on NSFAS funding for students have on this rental market?
We will have to see. Thats why exit strategies are important. Great question
Hey guys... it's Louis 😂, I'd like to buy your book do you have any book written yet, oh I'd like to see how know how you find your houses like websites to scout
Thanks man, I dont have a book but I do have a online course that people really like. It should answers most of your questions
Check out this link : payhip.com/LouisReynhardt
I have a question sir, this is a 3 bedroom house which will accommodate 3 students/people and you say it will generate 45k per month...are these students really going to rent a basic property for 15k per month?
Hey Guys, I don't know if you read the comments, but it's Louis here and I had a Question
... :D
😂😂Ask away my friend 💪🏻💪🏻
There is a elephant in the room that needs to be adressed.You are aware that if a person rents out a room/property to a person who does not have the correct paperwork to be in the country this can lead to a hefty fine.Prospective tennants needs to be vetted.
Absolutely, I will not be renting out illegally. We follow all the steps and procedures and abide by all the regulations to legally and safely house students.
I just realised when it comes to speaking English, A Boer and a Black man = same whatsapp group 😂
Hahaha this is so accurate. Im very Afrikaans, but im trying
Whatsup Louis its guys here 😂
😅💪🏻💪🏻💪🏻
Advise on the breakdown of how you get to the R45k income.
What is the expenses also?
If its a student house, is income only for 9 months of the year?
How/where do you get the students/renters?
Absolutely, great points. I will be sharing more details in the next frw videos about this property so make sure to check it out 💪🏻💪🏻