Is 2024 a good time to buy property in South Africa
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- Опубликовано: 11 июн 2024
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Is 2024 a good time to buy property in South Africa
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Do you think now is a good time to buy or not ?
I'm an idiot so I'm just gonna buy something and hope for the best...
@@raptorman5279seriously if this is your plan, have a four leaf clover, and hope it gets you an education
@@joanpearl7184 My dog ate the clover... Yolo
It may well be if the political situation finally becomes a bit more rational. I have seen some stats showing very low growth in property and rental prices in Gauteng since 2018, so it may well be undervalued vs. the Western Cape for instance. Hence larger potential for above CPIX growth for the first ~5 years if SA gets out of its funk. Also some people would probably re-immigrate to Gauteng if things stabilise because of work as well as property affordability.
Thank you for changing your ring and for stopping playing with your ring. It became so distracting that my ADHD OCD mind couldn’t handle it anymore 😵💫 It was such a distraction that I could not focus on a single word you said. I needed to see the detail of your signet ring. Now that you have a grey rubber band and are not fiddling with it, I can focus on your message. ☺️
I am in the process of buying an apartment now with my brother since it is the first property we are using everything we Kan to lower the payments and costs including the FLISP program it took me a couple of years of research to get to this point and I am very exited. we will be renting it out for now to keep costs down.
Thanks so much for sharing. Im glad that you can make use of the Flisp subsidy. I sallute you and your brother. Well done for pursuing property 💪🏻💪🏻
I was buying property, in 1990, unfortunately it was monopoly properties and it hasn't appreciated as much as real property
🤣🤣🤣 The struggles
🤕😭
Currently the Levies are holding me back to buy in CPT.. Rent income wont cover the levies
I call levies the deal killer because it makes such a huge difference when you run the numbers.
That's most if not all properties in Cape Town. 99% of the time the rent won't cover the bond, levies or even rates and taxes. It's a long game but the rewards are great.
Don't be discourage. Speaking from experience.
I am in a process of both selling and buying, ❤
Awesome , all the best 💪🏻💪🏻
I’m in the US and considering buying property in South Africa. One advantage I have is the power of the US dollar over the Rand. But again, am I going to be lucrative through ROI, renting out my property or properties. I’ve never been in South Africa so don’t know the ins and outs of how to run it over there.
Thanks for your comment. You certainly have a massive advantage with your buying power of the dollar.
Check out my coaching program if you want to learn how to be a successful investor in South Africa
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Great content
Thanks for watching 💪🏻💪🏻
How’s is going buddy? Yes!! 👍🏿
Lekker brother 💪🏻💪🏻🏆
Hi Louis, hope all is well! Love your videos. Where can I sign up for a one on one meeting?
Thanks my friend. Appreciate the feedback. You can pop me an email at louisreynhardt@gmail.com 💪🏻
@@louisreynhardt Thank you. Email sent.👍🏽
Love your content...1💚✌🏾😇👑🇿🇦
Thanks my friend appreciate the positive feedback 🙏🏻 🙌🏻
Great video I just want to find out if classes cars good investment
Thanks. Do you mean classic cars ?
@@louisreynhardt yes
Hi. Is it better to have two paid off sectional titles of let's say 500K each than buying one property costing 1mil? And also what's the best way to move up from have two paid off sec titles of 500K each? Considering rates, taxes, levies and so on.
Great questions. It really depends on your age, risk apetite, money available, and end goals. I would say using leverage has many advantages if you buy the right property. Most people will be better off paying cash because it reduces the risk. But even though your property is paid off, you will still have monthly costs like rates and taxes , levies, and even maintenance.
Property is the best way to build long term wealth, thanks very much for the inspiration Louis. Do you know anywhere people can get finance to leverage our investment, based on the income potential of the property..We used to get buy to let bonds up to 80%ltv, secured on rental yields, not sure whether these are still available anywhere
@@douglasklipdriftcurrently ABSA it's only bank that I know it consider that
Bar One... For a 25 hour day🤙
Never thought of that before. Thanks. 🤣
Hi Louis - do you ever invest in commercial property?
Unfortunately, not. I havent seen commercial property that makes sense in my area. Maybe somewhere in the future
@@louisreynhardt they are out there and on the whole, offer much better returns than residential.
@holdmyrod Which area are you in ? Thanks for sharing
@@louisreynhardt I'm in Kouga Municipality. Which areas do you work in?
I dont know what's best to do. I have a sum of capital I've been saving close to 900k. I don't know if i should use it to invest in property or if I should use the banks money and pay it over 20years
So going to answer this with a story.
A friend approached me and asked how to buy bitcoin.
I asked why, and they said for investment purposes, to which I responded why don't you buy a FX exchange linked to BTC, that way you are only taxed at the end of when pulling out gains rather than in trade amount. Your exchange is linked to the bitcoin value and is easier to pull out and enter.
So if you don't want to buy property and manage it with knowledge then buy a reit. Your value is partially then linked to the value of assets and would be less effort.
@@joanpearl7184 I have BTC and a few alt coins.. 🤷
Bonus of using the bank's money is that you can loan against it later again if you need to repair or upgrade and the interest is lower than a personal loan. But you are still paying a lot on interest. I have no clear idea of how much is tax deductible but it would be great to see a "X vs. Y vid" on buying a property cash either personally or to rent out in terms of whether lending is really such a bad idea, or if dropping coin is king.
@@schalkvandermerwe3838 I have done this process, and there are very many ways to do this.
1: commercial retail - it is sometimes better to register as a vat payer, especially if it's factory space as if you use loans out of the interest 15% of the interest is vat..... So think of getting a loan with a 15% reduction.
2: as a single asset Pty ltd, you offset the interest as an expense for operating so you don't pay any tax at all on it as the profits are not realized until all expenses are calculated (for an individual this is probably the best way of doing this) think of it if you are earning as getting a 30-45% reduction to your tax bill upfront. As well expenses in the company are made before tax so work it as if it's all tax deductible.....
3: I stopped buying property in my personal capacity at 1, and that was for a modest house with at that time with a government grant / subsidy to the loan requirements, in all honesty it was a good deal at the time and wish I had kept that property now I look back.
@@schalkvandermerwe3838 I like to look at tax and commitments as an example.
When you are an individual you are pulling your wheelbarrow, you can load investments into the wheelbarrow but you will always have tax paid first and be forced to claim afterwards.
In companies, you push the wheelbarrow, you need to be sure of what you put into the wheelbarrow and if there are further commitments however it is far easier to push that wheelbarrow forward rather than pull it, and you are in control of when you push and how you push to a large degree.
Deciding where you place yourself is called structuring.
In modern south Africa it is often beneficial to structure yourself in control at the front of the wheelbarrow instead of pulling from the other side.
and in hard currency a loss ?
Great point. Anything in Zar value has depreceated over time. The important part is that if you use other people to pay off your property, it goes unnoticed. The fact that the rand has lost a lot of its value isn't something we can ignore. But most people won't have the knowledge and emotional intelligence to invest elsewhere to beat inflation and still make good returns. If you can invest in property and create an infinite return, that's where wealth is created. Not necessarily buying a primary home and paying it off for 30 years.
@@louisreynhardt ues understand , but if you are an international investor its a loss
If you buy a normal property yes.
But if you have the skills to identify high ROI properties thats a different story
@@louisreynhardt yes but you are swimming against a tide - and eventually you lose thats why south agricans would rather invest offshore
@bigboy1134 I agree that diversifying is very important, and you can't have all your money in 1 currency. But where others see problems, I see a solution, and that's where you make money. The video simply stated that even though with depreciating currency political issues and many other issues, property values still went up. Hopefully, my channel can educate people enough to be aware of all the risks. Like any investment, property in SA has risks
If you own a property, especially a house, you will spend a lot of time and money maintaining it. Otherwise today it would be fall8ng apart. Dont fall for the hype
Absolutely, maintenance on these freeholds is expensive, especially if you neglect it over a long term.
I’m personally exhausted with estate agents . They always say to a potential buyer it’s the right time to buy , to a seller they say it’s the right time to sell . Now I just don’t know what’s the right thing to do .
The Agent wants a sale they don't worry about the good or bad time to buy
Sad but true
Absolutely, as long as you can see through their sales tactics they can still be valuable.
@UC0KdADUZPAG7xznHYxNA2Pw why can’t ppl just be genuine, that’s the problem with a capitalistic society. It’s eat or be eaten
@MthimkhuluD money changes people. But there's hope, once you understand how the system works.
Does our political landscape not make you nervous about buying property.
25% of parliament's seat are taken up by people who are pro-land-expropriation and against private property rights. (I'm referring to MK and EFF) This doesn't take into account those outside of those 2 parties who also have those beliefs.
I agree that property is a good stable asset but that only counts if you're actually allowed to own it.
Absolutely, just remember, can you control the outcome ? If the answer is no, then why do you stress about it.
Also, this is focussed on vacant and farm land. Imagine they try to grab properties in a freehold stand in the city or sectional title. This will ultimately cause people to not pay their bonds, which can lead to a total banking colapse. This is very, very unlikely. With that said, what do I know. I'd rather take the risk instead of not doing anything. But property is not an asset that works for eveyrone, so make sure you are comfortable with the risk.
Thanks for a great question and adding value to the channel. 🙏🏻
Absolutely, just remember, can you control the outcome ? If the answer is no, then why do you stress about it.
Also, this is focussed on vacant and farm land. Imagine they try to grab properties in a freehold stand in the city or sectional title. This will ultimately cause people to not pay their bonds, which can lead to a total banking colapse. This is very, very unlikely. With that said, what do I know. I'd rather take the risk instead of not doing anything. But property is not an asset that works for eveyrone, so make sure you are comfortable with the risk.
Thanks for a great question and adding value to the channel. 🙏🏻
@@louisreynhardt Thanks for your substantial response. I guess the thing that makes it more real is the fact that there are actually discussions about it here in SA, whereas in other countries it's never even been mentioned. I suppose we will learn alot in the next year or two about this new government of ours.
Another question that I have is whether or not property has outpaced inflation or merely kept up with it, specifically in SA? And I mean "real inflation", not the inflation based on the basket of cherry-picked goods. Cause everything was a lot cheaper in the year 2000. I'm not hating on property, I have 2 flats that I rent out and I own the house that I live in. Just thinking out loud. (Some video ideas for you.)
I guess we'll know soon enough - if the DA, ANC and IFP end up holding the big stick, it would probably steer clear of property annulment, which makes the 2nd half of 2024 probably a good time to buy.
@@louisreynhardt For foreigners this is a factor, I was taking a look at your channel, and altho I am looking to move..... sadly I do not feel like SA will be for me
Your oppening syatement technically flawed.
Feel free to elaborate on your comment.
Think it's because you said if you bought a property in the year 2000 then it'll be worth R1.5m today. You might have forgotten to say how much it was back then.
Thanks, just in the next few lines, I mentioned the cost of the average property in 2000