#THREAD #1 #voices
"You're just jealous that the voices only speak to me"
We all have voices that speak to us. Some might say "Buy that expensive car" other might say "Why not invest that money for retirement?"
#2 We need to decide which voices we listen to: will we listen to the instant gratification voices that will fill our tummies and satisfy our lusts for physical goods, or will we delay our gratification for a while?
#3 If we delay our gratification and listen to the voice of reason, we will reap the rewards in future. As we listen to the loudest voice, we need to find ways to make the most important voices loudest.
#4 We can make the most important voices louder by disconnecting ourselves from other voices. E.g. If the takeaway voice is screaming, delete the app from your phone. If the shopping voice is screaming, hide your car keys
#5 Sooner or later we need to drive out the voices that will destroy our future and start believing in the voice of truth - "you can do this."
"You can save for retirement"
"You can live without the approval of others"
"You can get out of debt" #END
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BODY CORPORATE FINANCIAL STATEMENTS - BEFORE YOU BUY! Let's look at what you need to look at.
First off - you don't just sign your OTP. You have an exit clause stating that the sale is dependent if the financial health of the BC is favourable to you. Please add a timeframe.
Let's go...
#1 Financial statements:
I'm very interested in the budget. I want to know what the levies are used for. 1.1 Check for significant levy increases
1.2. Any suspicious expenses
1.2.1 Special levies 🚩🚩🚩🚩 (Excluding normal levy and maintenance levy)
1.3. If the BC has other income such as mobile tower rental or advertising, BONUS!
#2 10 Year plan // Reserve fund
2.1. This should be included in the AGM pack. Check for big expenses coming up, then compare if the reserve fund is adequately stocked.
2.2. It needs to be current, not 6 years old and not reviewed.
2.3. Check maintenance records (of supplied). Look for recurring patterns.
2.4. Check for upcoming maintenance/renovations. Ask some questions here, if needs be.
Tip - Do a personal walk around. IS the place filthy? Is everything falling apart? Is the paint peeling off? It's a no from me
RIP Charlie Munger (1924-2023) - the Vice chairman of Berkshire Hathaway, and right hand man of Warren Buffet. In honour, I would like to give the 10 best quotes by Charlie.
1. "Spend each day trying to be a little wiser than you were when you woke up."
2. “The safest way to try and get what you want is to try and deserve what you want."
3. “In my whole life, I have known no wise people who didn't read all the time - none, zero."
4. “The big money is not in the buying and selling, but in the waiting."
5. “You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time."
So you want to buy into a sectional title scheme??
Well, let's talk what you should be looking for in the financials - and how to go about it. Oh, and the OTP.
So the OTP. Add a clause stating the sale is dependent on your review of the financial statements. And you have 2 weeks from it dropping in your lap to review and change your mind. Just reword it nicely ;)
Ask for the last AGM pack (if possible) - or just the annual financial statements (AFS).
Focus on the income and expenses, reserves, and outstanding debts.
6 things you should know about a tax free savings account in south Africa... We'll start with the easy ones and go to more complex things 😎
1. TFSAs a lifetime limit of R500,000, which means that an individual cannot contribute more than that amount over the lifetime of the account. There is also a R36,000 annual limit.
2. Contributions to TFSAs are not tax-deductible, but any interest, dividends, and capital gains earned in the account are tax-free.
Let's talk TAX AND RENTAL PROPERTIES!
How do you pay less tax on rental income?!
Thread below 👇👇👇
So, as you might know, rental income is taxed at your normal income tax rate. This means, if you're in the 36% bracket, you will be paying 36% income tax on all income made from property rentals.
But there has to be a way around it?
And that's what the rich and informed do ;)
You have a few choices in paying less tax in rental property: 1. More expenses and deductibles 1.1 Home loans 1.2 Betterment & Maintenance 2. less income 3. tax breaks. 4. do some funky entity dealings - not for the faint-hearted!
And a special section incl: 5. SELLING + taxes
DONT BUY PROPERTY FOR THESE 9 REASONS!! 1. Because you are prequalified/preapproved for an amount. Remember interest rates will climb and might make it unaffordable
2. Because levies are low. With bad management, these can increase. Check that the system and all finances are healthy too!
3. Because it's a beautiful home. It takes a lot of maintenance and MONEY to keep the grass greener on that side. And budget for insurance too...!