IS CAPE TOWN A GOOD PROPERTY INVESTMENT LOCATION ?

IS CAPETOWN A GOOD PROPERTY INVESTMENT LOCATION ?
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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.

[@louisreynhardt]

Do you think Cape Town property is a good investment?

[@ianburger1711]

Buy gold and wait for the housing market to slow down a bit, I'm from Worcester and housing is not cheap around here.

[@louisreynhardt]

Great input, thanks for sharing. I can imagine the prices there are quite inflated at the moment 🏠

[@marksmith-od7sg]

​@@louisreynhardt Finding properties below market value in Cape Town is quite challenging. I currently rent out two flats and a three bedroom house in the Blouberg area, and it's been five years since I purchased them. Unfortunately, I haven't reached the break-even point yet. I believe that by the seventh year, which is just two years away, I will finally break even. The properties should start paying for themselves, especially with the yearly rental increases. It's definitely a long game, requiring a lot of patience. Thank you for providing valuable content!

[@queenbeeeza1706]

Can you please do a video of sectionalizing vs subdividing land 🙏

[@saucekid8367]

I think only if you have a 20%+ down payment its a good place to hold money in cause the value goes up significantly because of the tourism industry. But its not the best area in SA when financing only to buy and hold

[@cedricnshimba3094]

Hi bro, one thing i especially like about your videos-you get to the point straight away, no fussy intros. Keep it up. Content is really meaty and realistic for beginners like me.

[@louisreynhardt]

Thanks my friend. This comment is greatly appreciated. Thank you for supporting the channel and sharing your feedback. All the best 💪🏻

[@CaptainCook83]

Very few people from Cape Town lives in the CBD if look around the outskirts there is a lot of developments with potential to make money.

[@louisreynhardt]

Thanks for pointing that out. I Agree with you, just wanted to use a very common investment example. Will look into making a video about the properties available on the outskirts in the future.

[@mazibukomail]

Cape Town is great for old money, which is to say you own the property and dont have a bond to pay then you can make a lot of money, even if its a bit run down.

[@louisreynhardt]

This is really interesting. Thanks for sharing. I completely agree 💪🏻

[@melissaoosthuizen3467]

I bought land a couple months ago very close to Cape town. Looking forward to building and living there in a few years🎉

[@louisreynhardt]

Well done. I have a feeling you will like this video : kzbin.info/www/bejne/fZvRoJ2ke9R7iJosi=axj8omPzpnnVhnvF

[@Tjoops1]

As estate agent, and trying to gather info and learn as much as possible on the buy-to-let market, I watched several of your video's and started getting hot under the collar at you and your views. Why? I am in Cape Town! Northern Suburbs. And I quickly figured out, 1%ters are not easy. What is available, needs lots of work and thereafter, no longer 1%. BUT, this video clears things up and I thank you. I would love to discuss more with you, love to have a sitdown, but yeah, lets see how things go. Great content in general, thanks...

[@louisreynhardt]

Hi Deon, Thanks a lot for your comment. It takes a lot to share your emotions like you did. Sorry if It seemed insulting, but that is not the purpose of the video. I am sharing my experience on thought based on investment properties. Luckily, there's a huge market for primary residences, which doesn't have to be a good investment based on numbers. Im sure you will be able to make some great sales. Thanks again for watching and sharing in the comments. All the best.

[@nostalgiakitty2057]

Nice, video. I don't if seen on Tiktok the 2 ladies showing of properties in the KZN lower south coast, it may be nice to see you a reaction video to some of those properties or maybe even make a video about the area. Personally the price of the properties seems like a good deal until you add up at the price and levies and rates

[@louisreynhardt]

Thank you for your comment. If you dont mind, you can send me a link to these videos, and I can always consider doing a stitch video of some sort. Thanks for the suggestion 💪🏻💪🏻

[@gerhardmeyer8891]

Its clear that I don't have the skillset to develop equity like this. Worked overseas, earned real money, bought good rental stock in good locations in Jhb (Northcliff), some cash, some on short-term bank finance. Westen Cape too expensive. Paid them off first, then returned to SA. My spreadsheet is simpler by far. Gross rental income. Expenses. (Don't skimp on maintenance because its deductable from tax) Net income. On the side. Projected capital growth. Potential annual rental increases...don't understand what equity means but do understand whats the difference between assets and liabilities. I invested in assets. They produce passive income....😊

[@louisreynhardt]

Thanks for sharing your thoughts in the comments Gerhard. Appreciate the support and thank you for adding value in the comments. Much appreciated 👏🏻

[@traveltodive]

Been waiting for a video like this. Thanks for sharing Louis. I vote for another CT video 😂 - if you had to move and start to build a portfolio there, where and how would you start.

[@Caramelito80]

Woodstock, salt river, look at the old Victorians

[@ashtonalbertus2538]

I'm from Cape Town, my man has a great tool and it makes everything sound very daunting when it comes to the ROI on cape town areas for us that don't have cash to put down but hear me out: Seapoint and the CBD etc isn't where the money is at. Look at places in Mitchell's plain, Raven's mead, Rondebosch east , Strandfontein etc. Look, my man could've just used one of the above areas as they are great value for money especially when it comes to cash flow. Could you make a video for the audience using that excellent tool of yours but with one of the aforementioned areas. Thanks for taking the time to read this comment.

[@warren6942]

All very dangerous areas.

[@michaelnuttall5896]

This is going to sound much harsher than intended but your not the first person to find out that there is good money in being renting low cost housing in densely populated working poor areas.. there's a name for it even: slumlord. hahaha, I only laugh because most if not all of us who buy to rent do know this.

[@playgemji]

Useful breakdown! Thanks 🙌

[@louisreynhardt]

Thanks, Appreciate your comment 💪🏻💪🏻

[@JustRefiloe_]

Wow thank you Louis, this was very detailed and informative.

[@louisreynhardt]

Pleasure my friend. Glad you enjoyed it 💪🏻

[@bristolboer2910]

Louis look at Somerset West. 25min from airport and 15min from Stellenbosch university. Excellent value here 75% less than Stellenbosch. Beautiful Winelands and mountains here like Helderberg. Great government schools like De Hoop, Beaumont and Paarl Vallei. Excellent private schools also like Somerset College and Somerset House. Great shops and industry here also, so no need to drive to Cape Town. Much closer to Hermanus and for me more prettier coastline than for instance booming northern suburbs like Durbanville. Hidden gem of Cape Town, even Anton Rupert stays here rather than Stellies. Many foreigners currently buying into this market again especially Germans.

[@louisreynhardt]

Thank you very much for sharing your insight. This is quite interesting coming from someone with a bit more insight to the area. I will definitely consider this area and look into it going forward. I feel a portion of my portfolio can be bought in this area so looking forward to exploring more of these properties. Thanks for sharing and feel free to let me know if you have some topic ideas you would like me to cover.

[@bristolboer2910]

@@louisreynhardt Pleasure Louis, really enjoying your videos. Quite a few 1-2 bedroom development's going on like Sitari. De Velde maybe also good value as fairly new with a great location. For me in Somerset I more prefer (traffic) the Western side of town closest to the airport and Stellenbosch. (Cape town by the way has best African airport, so people really enjoy traveling through there directly to US and overnight back to EU.) Anyway, my 2c, keep up your good videos!

[@Zoyisile-xu1ei]

​@louisreynhardt The problem with staying in Somerset West is that you have to use the dangerous N2 highway getting to the city. You are bound to go through Khayelitsha where there may be road blocks during social unrest and very dangerous driving at night where passing cars are sometimes attacked with stones. I stay in Cape Town.

[@bristolboer2910]

@@Zoyisile-xu1ei Not true, you dont travel through Kayalitsha. N2 pass it and very well protected. As safe as any major road in SA. If you work in the Northern suburbs like Durbanville or Bellville or even Stellenbosch or Paarl you don't even need the N2

[@Zoyisile-xu1ei]

@bristolboer2910 Also, the problem with heavy traffic if you are working in the inner city. Especially in the mornings and coming back from work.

[@pieterbosman1677]

This is very Accurate. In the long-run it is a great investment. BUT the floor finishes are actually very popular. People would renovate by replacing everything but those old school flooring. Living and working in SA, this is difficult, but working abroad and paying additional payments on your bond, in 2-3 years you have that rental income will become profit. Some of my friends who have only working abroad for 5 years have 2-3 paid properties.

[@louisreynhardt]

Thanks for sharing. Buying cash with stronger currency can absolutely make sense. You just have so much more buying power.

[@brad942]

Im glad you providing this info. I would love to continue investing in CPT but it seems Pretoria/JHB is more viable for cash flow investments

[@louisreynhardt]

Thanks for sharing. CT is great for certain types of investments, but it definitely has a higher barrier of entry. Gauteng is a much easier market to enter.

[@brad942]

@@louisreynhardt noted. Thank you for the awesome content. Will reach out to you soon. Cheers

[@gavinjones2209]

Thanks louis i need to check out easy equities to try with stocks as a start

[@louisreynhardt]

Definitely check it out. You can also check out my stock video playlist if you want to learn a bit more. Thanks for commenting 👊🏻

[@RussellSmith-nv2je]

Thanks Louis, well reasoned and to the point. We did buy in CT but for our own use. Completely agree that buying a property to rent out here is a bad idea. Agree with everything you said.

[@louisreynhardt]

Thanks for sharing. 💪🏻 it makes sense in a lot of ways to make it your primary residence if you have a longer-term mindset. The gains can be quite impressive, and you obviously need to live somewhere.

[@anderson6379]

U doing some solid work Louis. Keep it up 👌

[@louisreynhardt]

Thanks bud appreciate the feedback 🙏🏻

[@hloniramakatane7584]

Great content bro!

[@louisreynhardt]

Thanks for watching 💪🏻

[@denroycupido7627]

Thanks great video. Something for us Capetonian's to look at.

[@louisreynhardt]

Thanks for watching. Glad it helps a bit. Would love some suggestions if you have any for future videos 💪🏻

[@denroycupido7627]

Definitely will give input if something comes to mind.

[@claudetiffin]

id like to know if Airbnb is still a good option in Gauteng for a first time buyer who wants to still enjoy their new place and still try short term rentals for extra money?

[@Caramelito80]

CPT is no longer attractive unless you buy cheap, renovate and wait for capital growth. The rental market is not good with returns!

[@louisreynhardt]

Absolutely, thanks for sharing. The rental market is so weird in CT. Even bargains in good areas are quite rare.

[@badhabit6140]

Bought a place in cbd cape town half a year ago. 1.45m 2 bedroom 2 bathroom with indoor garage. Renting for R16125 pm. Loosing about 4k pm after everything. but in 6 months its already appreciated to R2m if i sold it now.

[@louisreynhardt]

Thanks for sharing man. Well done. Western Cape appreciation is next level . 🙌🏻🙌🏻

[@reson_8]

Hi Louis, great content on your channel. For a cash buyer would you get a better ROI on property in Cape Town vs say Gauteng? Taking into account appreciation and rental yield. And which of those two would give purely better rental yield? My focus would be to build monthly income but the property value should keep up with inflation at least.

[@louisreynhardt]

Thank you for watching. Great question. So buying cash will normally reduce your Return on investment because you have more cash invested. Generally speaking, I would say buying a high value property in CT with cash makes sense if your property meets the 1% rule. You should receive good monthly rental but your appreciation will be very good in the longer term. With that said, this is achievable anywhere in SA if you invest in the right suburb. Hope it helps 💪🏻

[@vernonsaayman9741]

They can keep it

[@louisreynhardt]

🤣🤣🤣

[@maxx9384]

The downside is the pesky loadshedding. It is a royal pain for European buyers such as me. And the political outlook is the next downside…

[@louisreynhardt]

Absolutely, unfortunately, there will always be risks. Your return just needs to be high enough to mitigate the risk. Thanks for sharing.

[@chaddmedalie1529]

Very informative- where would you suggest one should look if they want to be out of Gauteng

[@louisreynhardt]

I would still say certain areas in CT can work. Gauteng is also still a great place to invest if you know your areas well.

[@chaddmedalie1529]

@@flourishdietitian why do you say PE

[@rosslutsch279]

I’ve been trying to to buy a property in cptfr 3-5m and been doing researches to see what they paid. Out of about 20properties I’ve looked at I’m yet to find a single person that purchased after 2014 that is making a decent profit mostly they are receiving capital back or making small loss.

[@louisreynhardt]

Absolutely, cash flow properties are very hard to find. Basically non existent when it comes to normal single let properties. Thanks for sharing 👊🏻

[@claudetiffin]

Hi Louis, is Constantia Kloof a good place to buy an apartment? I recently bought a place and wanted to know your opinion on it? ps been watching your video for awhile keep up the good work, I never miss a upload!

[@louisreynhardt]

Hi Claude Thanks for watching and for supporting the channel. Do you mean Constantiain CT or Gauteng ? As long as you have a longer-term mindset, it should pay off. But it all depends on the exact numbers of the property

[@corneheesakkers7102]

Dont forget about capital gains tax and tax on rental income….

[@louisreynhardt]

Absolutely 💪🏻

[@wianvanderwalt5354]

Could you possibly share that excel sheet with us or is there somewhere we can get it ?

[@louisreynhardt]

Sure, you can pop me an email at [e-mail] 👊🏻

[@robertdefreitas709]

Hi there, I'm from cape town and in the process of growing my property portfolio. The return on investment is not the best in cape town. I'm looking for other areas is south africa to invest it. What other regions in sa would you recommend? Looking for consistent tenants and decent areas. How do I get in contact with you?

[@louisreynhardt]

Hi Robert, thanks for your comment. CT overall is a completely different market. You can pop me an email at [e-mail] and we can have a chat from there. All the best.

[@dineshragooloo2249]

Hi Louis. Where can we download the ROI template? Thanx

[@louisreynhardt]

You can pop me an email at [e-mail] 💪🏻

[@dineshragooloo2249]

Hi Louis. Sent you a mail yesterday regarding the ROI template. Please check your mail. Thank you

[@johnmajor9564]

Currently looking around in Cape Town to buy a one bedroom: The difference between the price for which properties were sold and for which they are offered is huge like around 25%. It’s hectic…

[@louisreynhardt]

Thanks for sharing. Do you mean it's selling for 25% less than the listing price ? Sorry, just maybe rephrase if you dont mind.

[@johnmajor9564]

@@louisreynhardt I’ve just realized that my data is flawed: I compared the actual purchase prices of comparable property actually financed by FNB (via the app) with the listing price. The result was a difference of around 20-25% less than the listing price. As many buyers buy cash my comparison doesn’t add up as the cash offers are not included in the database on the FNB app.

[@louisreynhardt]

Thanks for taking the time to clear this up. This is actually quite interesting. I also wonder what areas are included in these sales. It's definitely something to watch. I do think that theres a lot of cash offers. Would be nice to see the percentage of cash purchases. 💸

[@tyblue4359]

I'm looking to buy property in Cape Town by the end of next year. This channel is a Godsend! Much love from the US

[@ctgr8guy]

Reynard, waar kry mens die data van eiendom groei in 'n spesifike area? Sal hulp waardeer.

[@louisreynhardt]

Die beste plek sal wees TPN. Jy kam report trek oor sekere areas en nog meer details sien. Jy kan ook reports trek op Property 24 maar ek het nog nie voorheen dit gedoen nie.

[@divanvanzyl7545]

Bra hoekom gebruik jy nie n meer realistiese voorbeeld soos n woonstel in die noordelike voorstede nie? Seepunt is flippen duur😂

[@louisreynhardt]

Dit is net 'n voorbeeld. Dit is wat meeste mense sien as 'n goeie investment ( 'n woonstel in Seepunt) die plekke in die noorde gaan nogsteeds shortfalls he so die prinsiep is dieselfde. Dankie vir jou comment 💪🏻

[@Marissa821]

The answer is, for rental income purposes, absolutely not.

[@louisreynhardt]

I agree 🤣

[@Claudia-ie3gu]

I bought properties twenty years ago here. No way will i sell

[@louisreynhardt]

Well done, keep holding 👏🏻 💪🏻

[@ForThoseWhoWait777]

If you had the opportunity to make R1 000 000 profit from a house you bought 5 years ago, would you sell and invest in SA again? I have Australian permanent residency so have the option to enter the property market there. Need your opinion, please.

[@louisreynhardt]

Great question. This is just my opinion, but I would say RSA has a lot more opportunities to invest in property because property here is still quite cheap. You can try to find a small air bnb in CT and buy it cash and rent it out short term with the possibility of appreciation. I would probably refinance my property instead of selling it, but then you need to make sure you understand the numbers. Also, remember you can get taxed on your profit if you sell, depending on a couple of factors. Overall, I would say the SA property market has a lot of opportunities compared to properties overseas.

[@user-lg7vx6xp1o]

All the places that you mentioned about square footage.. None of these places have load shedding. Course New York is falling apart..

[@louisreynhardt]

They were just examples. And just remembered who pays for the upkeep on the equipment to be load shedding proof

[@user-lg7vx6xp1o]

@@louisreynhardt Whatever happened to the 7 billion dollars of Americans, taxpayers money.. When Hillary Clinton?. Paid a visit to South Africa.

[@malcolmgawie8716]

Do you think Port Elizabeth property is a good investment? Lets say an apartment for rental?

[@louisreynhardt]

Difficult question to answer. It all depends on the numbers of that specific property.

[@malcolmgawie8716]

Fully understand

[@malcolmgawie8716]

Thank you for your content we really enjoy it

[@louisreynhardt]

@malcolmgawie8716 Thanks, Bud 💪🏻💪🏻

[@Lientjie-ji1pc]

I think so. Also at the beach, but not so expensive. Go for it!

[@Lientjie-ji1pc]

You must make you money in another place to be able to buy something there.

[@louisreynhardt]

Absolutely, this is so accurate 🙌🏻🙌🏻

[@wesleywilliams9290]

Please can you please advise about how to monitise a house that I have inhareted that are already tenants in the house and yard. I wanna build on to the house to get a higher income from it but I don't have starting capital how can I start? Would the bank finance me against the house.?

[@louisreynhardt]

Hi there, I wish I could give you a straightforward answer, but unfortunately theres a lot of things you need to consider. The easiest way might be to refinance the property and use the capital to build, but it's a fine calculation to make. You can pop me an email at [e-mail] if you would like to learn more about this

[@user-wi1oz1it6y]

When you say as a foreigner, to park your investment here? As a foreigner, wanting to invest in SA all signs and ROI % do not make it aperitivo at all, way to much risk, the rand is volatile, the infrastructure maintenance is horrific, the electricity provider is more like a casino, meaning you probably have more chance winning in the casino than having a stable and reliable electricity system, the crime rate is beyond understanding, and , they cost of living in SA is not as cheap or favourable as made out, many of the super market prices are higher than Europe, but I will agree on one thing, if you want to have a holiday home, in a nice destination, and don't care about the investment loss then its without a doubt s great place, although you need to constantly be wear of the crime.

[@louisreynhardt]

Thanks for your comment. You might see all these things as negatives, and although we face many challenges like any other country, SA has so many opportunities and potential for massive growth and people who are smart will act on it. You dont have to invest your money here. Just know, that many other people will. We are proud of our country.