The UGLY truth about property investing in South Africa

  Рет қаралды 32,684

Louis Reynhardt

Louis Reynhardt

Күн бұрын

Пікірлер: 97
@louisreynhardt
@louisreynhardt Жыл бұрын
Property, like leverage, can be a doubled edged sword!!!!
@ChristianNdu
@ChristianNdu 7 ай бұрын
Sir do you have any platform for community to share their progress on real estate
@Etienne-rf5wt
@Etienne-rf5wt Жыл бұрын
Can you make a video about all the paper work involved in buying/selling a property in SA? It would be super helpful
@louisreynhardt
@louisreynhardt Жыл бұрын
Sure, I'll be looking into this. I have a course coming soon talking about the whole buying process etc. Let me know if you would be interested in this.
@Fx-rw9nk
@Fx-rw9nk 9 ай бұрын
Yes this is what I've been looking for
@deano91062
@deano91062 Жыл бұрын
Getting in (Registration and transfer costs) and getting out (agent costs) is something that is not talked about often enough
@louisreynhardt
@louisreynhardt Жыл бұрын
I agree. Most beginners aren't aware of it either. Thanks for pointing it out 😁
@ulwandon
@ulwandon 11 ай бұрын
@@louisreynhardt true i got approved for a R1.2m property bond but i had to pay R75k for reg and transfer costs, i was so shocked and i couldnt raise that over 3 months which costed me credit history and score... i also didnt get the house, im still hurt
@louisreynhardt
@louisreynhardt 11 ай бұрын
@ulwandon so sorry to hear about this man. Dont stress to muoch and never give up. Just keep learning bud 💪🏻
@ulwandon
@ulwandon 11 ай бұрын
@@louisreynhardt it really demotivated me but i will regain and try again
@kennethlekhuleni917
@kennethlekhuleni917 11 ай бұрын
The agent should have advice that the property be 1275000 then when seller get paid by the bank then would pay the transfer cost
@raymondtromp7472
@raymondtromp7472 3 ай бұрын
Hi with property get building insurance that will cover all the fixtures and the replacent of the broken stuff. Also some insurance gives payment to you for tenements that dont pay. That way it lowers the risk. Mine is costing me R400 a month. I can replace carpets cuboards, geysers, paint wall damage, doors electricity, geysers. All in a claim. We all know the cost to return a asset back to its great state costs more than a deposit.
@louisreynhardt
@louisreynhardt 3 ай бұрын
💪🏻💪🏻 Thanks for your comment
@DigsWigs2022
@DigsWigs2022 5 ай бұрын
You're like the property uncle we never had. Solid advice. Keep it up. Thank you.
@louisreynhardt
@louisreynhardt 5 ай бұрын
Thanks for the support my friend. Appreciate your comment 🙏🏻
@ChristoffBenade-gw5jo
@ChristoffBenade-gw5jo Жыл бұрын
1/2 of Gross income minimum available to get approved these days. So for a 1million rand apartment youl need approximately R35 000 a month income with not half of that used as expense. 1million apartment youl get about 8to9 grand a month. So will definitely be a cash negative investment. Not so easy getting into the market if you dont have a very stable ans decent income.
@louisreynhardt
@louisreynhardt Жыл бұрын
Great insight, Christoff. Thank you for sharing. A good and stable income makes investing in property much easier. It's possible without it, but most people dont have the necessary skills and knowledge to achieve this. Shortfall properties can become liabilities very quickly if you do not have adequate reserves or equity in the property.
@grimmm4166
@grimmm4166 11 ай бұрын
That's not too bad, depending on the ROI you're looking at. If it's a 1 mil property with 10k a month, that's around 8 and a half or so years before your property has paid you back. You then have an asset which creates profit. Generally 5-7 years is more attractive, but if you have a number of investments 8 years is not too bad.
@freebees2234
@freebees2234 Жыл бұрын
My experience include agent fees and sars tax. Terrible 😮
@stefd2600
@stefd2600 10 ай бұрын
Thanks for putting you content out there. One mistake on you calculation, although the first property is cash flow negative, you could argue that you are paying a part of the monthly mortgage payment down as capital. (I did not go and calculate how much). So if you could get an access bond for instance, you could reuse the capital just paid again. That being said, its the same for the other deals.
@louisreynhardt
@louisreynhardt 10 ай бұрын
Thanks for your comment. Do you mean capital paydown? If so, it's definitely something to consider, but this is more focussed on in IRR Calculations.
@stefd2600
@stefd2600 10 ай бұрын
Yes exactly. Part of the monthly mortgage / bond payment is capital and the other is interest. Thanks!
@mrshleeful
@mrshleeful Жыл бұрын
Best to own your primary property with atleast 10% to 20% deposit to be worthwhile. Other than that home loans are just for banks. Best to rent and be more liquid. Millionaires buy houses - Billionaires rent a houses
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks for sharing Ashley. Being able to put down a deposit will drastically reduce your monthly bond. I agree, rentimg can definitely be much cheaper.
@dylanabrahams2755
@dylanabrahams2755 Жыл бұрын
Very informative...can you make a video about the pros and cons of buying property with cash???
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks for watching. Great suggestion. I will try making a video about this.
@Jay-qu7rf
@Jay-qu7rf Жыл бұрын
I'm sorely disappointed in property. I sold off an investment property last year with little profit, and I'm in the process of selling off my last investment property probably at a loss. Despite these properties being in really great areas, they either never appreciated or lost value. The costs are getting out of hand wrt levies, rates&taxes, load shedding, etc. However I will say that AirBNB was really good income. Bitcoin did much much better over the past ten years. I'd rather hodl Bitcoin instead.
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks for sharing Jay. I think that's why equity and cash flow are very important when it comes to investing in property. I'm sorry to hear about your bad experiences. Airbnb has created a lot of opportunities for homeowners.
@sanelekhayelihlegumede3759
@sanelekhayelihlegumede3759 2 ай бұрын
Hi Louis, how do i get the excel sheet im not on your membership
@louisreynhardt
@louisreynhardt 2 ай бұрын
Pop me an email at louisreynhardt@gmail.com 💪🏻
@GUUDKARMA_PRODUCTIONS
@GUUDKARMA_PRODUCTIONS Жыл бұрын
Also how does one appropriately estimate the rental amount to charge tenants
@GUUDKARMA_PRODUCTIONS
@GUUDKARMA_PRODUCTIONS Жыл бұрын
Adding profit margin you want on cost, having considered comparable rental prices in area?
@louisreynhardt
@louisreynhardt Жыл бұрын
Comparable figures are the best way as well as market research and experience. An easy way is to look on property 24 or Facebook what similar flats are renting for. Sometimes, it's a bit of an expirement at first
@bhebhemchithwa6821
@bhebhemchithwa6821 Жыл бұрын
How important it is to draft contracts with each and every tenant your renting your property to??
@louisreynhardt
@louisreynhardt Жыл бұрын
Tjis is extremely important. I can not stress enough how vital this is. You should also make sure that you vet all your tenants before they move in .
@Mark71697
@Mark71697 Жыл бұрын
Is it worth purchasing real estate in south africa or would it be more lucrative in another country? Please give 3 reasons for your answer.
@louisreynhardt
@louisreynhardt Жыл бұрын
Yes for sure. It depends on your exact circumstances, but I would say. Property in SA is cheap with decent long term growth. It's easy to acquire financing (meaning less of your own capital) Massive tax advantages when using the right structures. Diversification Great cash flow opportunities
@noelnyoni3724
@noelnyoni3724 Жыл бұрын
very informative Louis....you've gained an extra follower, such eye-opening information. I am a beginner investor I relate with most of the information you dish out...great work indeed.
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks for your comment and for sharing your thoughts. Also, thanks for supporting the channel. All the best.
@nashlingovender1992
@nashlingovender1992 Ай бұрын
Hi guys. Hope everyone is well. Just wondering if there are any companies that have relatively low bond registration and transfer rates? Are there any loopholes to bypass these?😅
@louisreynhardt
@louisreynhardt Ай бұрын
No loopholes but you can find a attorney and negotiate the transger and registration cost. Some attorneys sre open to negotiating
@nashlingovender1992
@nashlingovender1992 Ай бұрын
@louisreynhardt Thanks for the feedback
@GUUDKARMA_PRODUCTIONS
@GUUDKARMA_PRODUCTIONS Жыл бұрын
Hey sir..What does the "escalation, and Bond and transfers " denote ?
@louisreynhardt
@louisreynhardt Жыл бұрын
Escelation is how much your rent or levies will go up each year. Bond and transfer costs are cash you have to pay to register a new bond and to transfer the property to your name.
@macdonaldmolokwane4567
@macdonaldmolokwane4567 Жыл бұрын
Just discovered your channel this morning, I like how you breakdown this processes in layman's terms. Good job 👍
@louisreynhardt
@louisreynhardt Жыл бұрын
Welcoms to the channel my friend. Check out the rest of the real estate videos. There is a lot of free value. Thanks for your comment 💪🏻👏🏻
@bhebhemchithwa6821
@bhebhemchithwa6821 Жыл бұрын
Great video Louis, I'm slowly learning something new.
@louisreynhardt
@louisreynhardt Жыл бұрын
Great stuff, keep on learning. Check out my real estate playlist if you want to learn more. 💪🏻
@thatochiloane2268
@thatochiloane2268 4 ай бұрын
great Video do you charge for advise would love have a meeting with you just recently invested in property
@louisreynhardt
@louisreynhardt 4 ай бұрын
Hi Thato Thanks for watching and supporting the channel. I do offer more advanced guidance. You can check out this link BUY My Property Course here : payhip.com/LouisReynhardt​
@NMahlangu-v5i
@NMahlangu-v5i Жыл бұрын
What is your take when hiring rental agent?
@louisreynhardt
@louisreynhardt Жыл бұрын
When starting out, it's much better. Takes away a lot of the stress. Just make sure you use a very good agent, and while using them, learn as much as you can.
@brianbeyers6763
@brianbeyers6763 Жыл бұрын
Thank you so much! How can I become part of your membership?
@louisreynhardt
@louisreynhardt Жыл бұрын
You can click on JOIN underneath my channel or videos. Or you can pop me an email at louisreynhardt@gmail.com 👊🏻
@mrshleeful
@mrshleeful Жыл бұрын
If you can Airbnb your investment property its worthwhile and you need to be hands on. Renting is a complete waste of time and money in these times. Both my properties are worth basically same as it was 5 to 6 years ago. Airbnb was my only saving grace until the bodycorp band it from our complex for security reasons
@louisreynhardt
@louisreynhardt Жыл бұрын
Airbnb has created very good opportunities for people who own property. I guess it all depends on your area or city. Some Airbnbs do very well and other not so well.
@kim-lusteenkamp4866
@kim-lusteenkamp4866 8 ай бұрын
Louis I am binge watching all your content. Really insightful information
@louisreynhardt
@louisreynhardt 8 ай бұрын
Welcome to the channel my friend 💪🏻 💪🏻
@antoniodomingues1915
@antoniodomingues1915 Жыл бұрын
Hi I’m still young and I wanted to know what’s the best way to build a good credit score
@louisreynhardt
@louisreynhardt Жыл бұрын
Great stuff, starting early will help you a lot. Just focus on getting credit and paying it on time. You can watch this video, its a old one, but it's still very informative kzbin.info/www/bejne/onzQqGZ9btRohMksi=GSsbvo5gs3CrfNEv
@ndiwavhomukwevho7196
@ndiwavhomukwevho7196 Жыл бұрын
Say you have 300k and you wanna get in property investments, what would you do?
@louisreynhardt
@louisreynhardt Жыл бұрын
I would do this, kzbin.info/www/bejne/qJfFqJqarLqbjq8 If you haven't seen the video, check it out. Leave a comment there if you have any questions. Hope it helps 🙏🏻
@Kwameking1
@Kwameking1 8 ай бұрын
Excellent info.
@louisreynhardt
@louisreynhardt 8 ай бұрын
Thanks my friend 👊🏻 💪🏻
@heinrichjansevanrensburg3828
@heinrichjansevanrensburg3828 Жыл бұрын
Great Video, thanks for being so honest Louis! 👌
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks Heinrich 💪🏻
@skillpoints
@skillpoints Жыл бұрын
A lot of people I watch always speak about their mentors, but what techniques can you use to find someone that is willing to give you some advice.
@louisreynhardt
@louisreynhardt Жыл бұрын
Great question! Unfortunately, not a lot of people are willing to share their secrets( I hope this channel can help a bit) A mentor can be a friend/ paid mentor or even just a parent with the right knowledge or even a person writing a book. As long as you can learn from others, they can be seen as mentors). I had people directing me in the right direction, but no one was willing to hold my hand while I still learned. Reach out to people you know has the right knowledge. They might just be willing to help.
@kylestohr7964
@kylestohr7964 Жыл бұрын
How can I get the excel sheet.?
@louisreynhardt
@louisreynhardt Жыл бұрын
Hi Kyle, You can join my cheapest membership to get access to the evaluation sheet. Thanks for watching.
@tearyb
@tearyb Жыл бұрын
@@louisreynhardthow to join your membership for the excel sheet.
@louisreynhardt
@louisreynhardt Жыл бұрын
@tearyb You can click on any video and click on the join tab underneath the video. Or feel free to send me an email at louisreynhardt@gmail.com
@davidmatsosepaile5148
@davidmatsosepaile5148 Жыл бұрын
thank you so much for the advice
@louisreynhardt
@louisreynhardt Жыл бұрын
My pleasure, thanks for watching 👊🏻
@PooveshneeNaicker
@PooveshneeNaicker Жыл бұрын
Hi, have you heard of immediate momentum? If so, do you think it's legit
@louisreynhardt
@louisreynhardt Жыл бұрын
I have not, so I can't comment on its validity. I will suggest to go and google it and look for reviews. You should be able to see if it looks sketchy
@luyolo79
@luyolo79 Жыл бұрын
Do you use corporation? Which one? And why? Especially when you were a new b
@louisreynhardt
@louisreynhardt Жыл бұрын
I started with a family trust and a property trust 🙌🏻🙌🏻
@luyolo79
@luyolo79 Жыл бұрын
@louisreynhardt why did you choose that, and if you were to start over, what would you change from your strategy?
@jldp24
@jldp24 Жыл бұрын
If you a middle class oke trying to get into property with 500k down by the age of 30..dont..its not worth it..esp in the WC..levies..rates..etc
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks for your comment. Just remember Western Cape s a completely different market, and you should use the right strategy to make money there. Levies, rates, and taxes are not a reason to not invest in property.
@jldp24
@jldp24 Жыл бұрын
@@louisreynhardt I'm not going to get into the under R500k segment..I'm gonna buy a house with my accumulated equity growth over the years..keep a few of them and sell the rest off..its not worth it
@louisreynhardt
@louisreynhardt Жыл бұрын
The great thing is, it sounds like you have a plan . That's very important because it means you are learning. Look, WC is a different market to invest in. Im assuming all your properties were cash flow negative, hence your change in strategy. As long as you find something that can work for you, it's good.👊🏻
@jldp24
@jldp24 Жыл бұрын
@@louisreynhardt unless you have some prospective cheap investments with great roi and are looking for investors to join your circle.... rgds
@deano91062
@deano91062 Жыл бұрын
Thanks for your videos. I've been thinking about going back into investment property again. Do you have a company or director email address I can reach you on? This might be for the minority but it would be good if you could make a video for people that have the full amount of money and put it into a access bond and see how that differs from a normal bond. Many thanks.
@louisreynhardt
@louisreynhardt Жыл бұрын
Thanks for your comment and for watching the video. I'll see if I can touch on the topic in future videos. Thanks for the suggestion. Sure , you can pop me an email at louisreynhardt@gmail.com 👊🏻
@deano91062
@deano91062 Жыл бұрын
Thanks Louis. Will touch base shortly.
@JanetBosman-x6w
@JanetBosman-x6w Жыл бұрын
Great video
@louisreynhardt
@louisreynhardt Жыл бұрын
Thank you my friend 🫶🏻
@eugenematthews1981
@eugenematthews1981 7 ай бұрын
really good video with current and relevant facts
@louisreynhardt
@louisreynhardt 7 ай бұрын
Thanks my friend appreciate your comment 🙏🏻
@eugenematthews1981
@eugenematthews1981 7 ай бұрын
@louisreynhardt currently going through a development from scratch, going through planning approvals at the mo
@terrencembanya3035
@terrencembanya3035 Жыл бұрын
The title of the video is deceiving, all these problems are common regardless of where you are in the world.
@louisreynhardt
@louisreynhardt Жыл бұрын
Exactly, and that is why the video is made. If you have learned something, then great. There is no need for negative comments. The purpose is to help beginners and new investors.
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