Thanks for the walk-through. We've also looked at units in this block but decided against it. There are plenty on the market where most are in desire state.. that you could go in at a 40% discount (if not more), renovate and then put a tenant it. But the fact that many are for sale and been on the market for long periods of time made us trend on the cautious side and walk away.
Hi Laurens. Thanks for the information you've just shared with us. One thing I would like to get clarity on is the issue of levies being inclusive of insurance, is that for all sectional title properties?
Hi Siyabonga, yes, most body corporates will have some level of insurance included in the levies. The most common things covered is building insurance (i.e. insurance to rebuild the property in the event of a disaster, like a fire) and geyser insurance. It's important to review/read the insurance that your body corporate provides, and to determine what gaps need to be covered by your insurance provider. Good luck :)
Hi there, I know this vid is 2 years old but I'm also considering buying this property for cash as a foreign investor (my first real estate investment). I was also looking at this specific complex in a 2 bedroom currently selling at approx 550k. My plan was to have my son live in one of the flats and rent out the other room. My concern is that the value of the property doesn't seem to be going up at all and the Rand is plummeting. Rent is going up however so I'm wondering if you feel it would be a good investment.
Hi, you need to calculate the ROI and then make a call whether the return is justified on the risk you are taking. Escalations are slow and the Rand is volatile, so your return needs to be sufficient. Unfortunately I can't make that decision for you. Good luck
Most likely yes. I think CT has a great student accommodation market. I recently purchased a house in Obs, will do a video on that shortly. Returns are looking good :) I haven't found the right low income market where the cashflow works well. But I'm considering buying a few new builds in CT to leverage the Section 13 Sex Act
Hi Nate, I can't speak for the US, as I don't have experience in that market, but I have experience buying property in the UK from SA. The reason I did it was to hedge against the depreciating Rand. By investing in another country, you can benefit off their currency strength. Investing in another country makes it much harder to raise institutional finance (unless you have a local partner). Also, the returns won't be comparable to what you can get in SA. I don't recommend investing offshore, unless you want a currency hedge. In that case, make sure you have a local partner and enough cash to put down a sizeable deposit.
1. I’m turning 18 soon. Im obsessed with property. Is there a course I should take before starting? 2. A financial advisor I spoke to says that if I start a unit trust, the bank will control how they want to diversify my portfolio but I want to invest in property, certain stocks and specific commodities. Any advice?
Hi there. 1. I've got a low-cost course which you can access at propertybootcamp.co.za/membership 2. If you want to be a passive investor, it probably makes sense to leverage a financial advisor to manage your finances. But they provide very average returns and tend to charge very high fees (which eats into your returns) I don't like this approach. No one is going to care about your finances as much as you do, so take charge. With that said, before you start investing, get the knowledge of your prefered asset class. First invest in your knowledge. Get a coach, do training courses and buy lots of books. Once you've acquired the right level of knowledge, then you can take the leap and buy your first investment.
Thanks for the walk-through. We've also looked at units in this block but decided against it. There are plenty on the market where most are in desire state.. that you could go in at a 40% discount (if not more), renovate and then put a tenant it. But the fact that many are for sale and been on the market for long periods of time made us trend on the cautious side and walk away.
Fair enough 🙏 you've got to find a deal that meets your requirements. Happy investing 😉
Hi Laurens. Thanks for the information you've just shared with us. One thing I would like to get clarity on is the issue of levies being inclusive of insurance, is that for all sectional title properties?
Hi Siyabonga, yes, most body corporates will have some level of insurance included in the levies. The most common things covered is building insurance (i.e. insurance to rebuild the property in the event of a disaster, like a fire) and geyser insurance. It's important to review/read the insurance that your body corporate provides, and to determine what gaps need to be covered by your insurance provider. Good luck :)
@@LaurensBoel thanks
Hi there, I know this vid is 2 years old but I'm also considering buying this property for cash as a foreign investor (my first real estate investment). I was also looking at this specific complex in a 2 bedroom currently selling at approx 550k. My plan was to have my son live in one of the flats and rent out the other room. My concern is that the value of the property doesn't seem to be going up at all and the Rand is plummeting. Rent is going up however so I'm wondering if you feel it would be a good investment.
Hi, you need to calculate the ROI and then make a call whether the return is justified on the risk you are taking. Escalations are slow and the Rand is volatile, so your return needs to be sufficient. Unfortunately I can't make that decision for you. Good luck
Hey Laurens are you looking to buy more rental propertis in the cape town area?
Most likely yes. I think CT has a great student accommodation market. I recently purchased a house in Obs, will do a video on that shortly. Returns are looking good :)
I haven't found the right low income market where the cashflow works well. But I'm considering buying a few new builds in CT to leverage the Section 13 Sex Act
@@LaurensBoel Yeah that 55% return is of the property price is sweet.
What do you think about buying property in America from here?
Hi Nate, I can't speak for the US, as I don't have experience in that market, but I have experience buying property in the UK from SA. The reason I did it was to hedge against the depreciating Rand. By investing in another country, you can benefit off their currency strength.
Investing in another country makes it much harder to raise institutional finance (unless you have a local partner). Also, the returns won't be comparable to what you can get in SA.
I don't recommend investing offshore, unless you want a currency hedge. In that case, make sure you have a local partner and enough cash to put down a sizeable deposit.
@@LaurensBoel ok awesome thanks for the reply, makes sense
1. I’m turning 18 soon. Im obsessed with property. Is there a course I should take before starting?
2. A financial advisor I spoke to says that if I start a unit trust, the bank will control how they want to diversify my portfolio but I want to invest in property, certain stocks and specific commodities. Any advice?
Hi there.
1. I've got a low-cost course which you can access at propertybootcamp.co.za/membership
2. If you want to be a passive investor, it probably makes sense to leverage a financial advisor to manage your finances. But they provide very average returns and tend to charge very high fees (which eats into your returns)
I don't like this approach. No one is going to care about your finances as much as you do, so take charge. With that said, before you start investing, get the knowledge of your prefered asset class.
First invest in your knowledge. Get a coach, do training courses and buy lots of books. Once you've acquired the right level of knowledge, then you can take the leap and buy your first investment.