Thread by @talkcentss

Educational Property Thread For:

• First time home buyers
• Property investors
• Current Owners

The information you need that will save you over R500 000, your marriage, and countless headaches.

Alright, let’s get to it. 👇🏽

• Interest Rates

South Africa’s historical interest rates (1956-2021)

What You should be asking;

“Are we entering into a hiking cycle”

If we are, researching is vital, you don’t want to be buying a liability, do you?

Most likely, Interest/R’s have floored and will ⬆️

• Asset or liability

Let’s settle this for once and for all. Yes, a house is an asset.

My definition though:

Asset =puts money in your pocket.

Liability = takes money out of your pocket.

The case studies in this thread will highlight the differences for you. #property

-Now that the air is cleared,

Lower Interest rates don’t:

• Make properties cheaper
• Don’t make it easier to borrow
• Doesn’t mean you don’t need a deposit.

*Interest rates affect the financing and the borrowing costs.

*Qualifying for a bond doesn’t = affordability

• Affordability

How well will you be able to handle:

• Defaulting tenants
• Loss of income
• Repairs and maintenance
• Rates and taxes
• Insurance
• Rising rates

All these are considerations you must be aware of.

These costs affect your Return on Investment (ROI)

• Return on Investment (ROI)

the money you put in VS the money you get out in return.

This secret is hidden in my eBook - sorry, not sorry. 🙂

•Case study 1 - (ASSET)

Great investment: 👇🏽

Gross Yield = 25.8%
ROI = 57.8%

Picture of calculations on the post below.

privateproperty.co.za/for-sale/easte…

- Case study 1 calculations from above⬆️

Option 1: 20% discount. Always offer lower than what they want.

Option 2: No discount offered, but still great returns on this investment.

•Case study 2 (LIABILITY)

Nice property, but over priced.

If it’s for investment purposes then terrible investment. And it’s under offer, someone tell them before it’s too late.

GY = 11.8% (if they accept a 20% discount)

ROI = -11.3% (Negative)

property24.com/for-sale/beaco…

-Case study 2 Calculations ⬆️

Takes money out your pocket each month. (R946)
R11 352 a year

It reduces your affordability, you’ll battle to get financing to scale your property portfolio business.

It’s better to invest your money in an alternative asset than this property.

• Rental

You can’t be naive when buying property,
you can’t expect people to pay R7-10k a month on rent when 70% of the nation can only pay between R3000-R7000 a month.

Tougher economic conditions will bring the property market down.

• 2020 property boom is running out of steam:

Sell when everyone is buying, buy when everyone wants to sell. Simple concept. Similar to #stonks buy low, sell high.

businesslive.co.za/fm/opinion/202…

• Plan of action

IMO- buying now is the wrong time. The market is on the precipice of a crash/ correction.

This was the basis of me setting this up👇🏽

Build capital while property prices fall. I believe in a year or two from now, you’ll be able to buy at 20-30% discount.

https://twitter.com/talkcentss/status/1334512575497842688

I have so much more to say, but I’ll let you read the rest 👇🏽

Learn how to work out profitable deals, the only property ebook you’ll ever need - saving you over R500 000 in the process.

35% off for the first 15 people

Use code: property.

gum.co/property

New Promo code: home

15 copies at 35% discount.