Return on Investment

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Jack Welles
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Re: Return on Investment

Unread post by Jack Welles » Mon Mar 18, 2019 2:02 pm

richard C wrote:
Mon Mar 18, 2019 8:51 am
jandub wrote:
Sat Mar 16, 2019 9:47 am
Good morning

Any thoughts on buying property in a well run full title retirement village. You propably will have a more reliable tenant profile, albeit one with a somewhat higher turnover due to natural causes. These complexes are popular , especialy those in a good area with good facilities.

Jandub
A growing industry in which we are very heavily involved (as architects) at the moment.

Check the purchase conditions regarding age and rules regarding occupation. Also keep in mind that most retirees end up living on a fixed income. As monthly levies rise (a big portion of costs in a village where a lot of facilities are on offer), your aging tenant may find themselves unable to cover escalating rentals, and unable to move.
... and you can't get them out because of the way the courts apply the PIE Act when it comes to evictions!
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macdaddy
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Re: Return on Investment

Unread post by macdaddy » Thu Apr 11, 2019 2:10 pm

I was reading this thread, revolving around property investments and I am looking for recommendations/advice on financing options. (Intention not to highjack)

Let’s say one would want to purchase a piece of land to build a house, is there any way at all that anyone knows of to be able to get the finance approved for the build and only start the repayments of the loan on transfer in to your name?

I have been looking around at most of the banks and all building loans they offer are payable immediately. It’s a catch 22. It’s almost impossible to afford live in a bonded or rented property and to also pay the repayments on a building loan during the year or so it takes to complete.

Thanks a lot!
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Jack Welles
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Re: Return on Investment

Unread post by Jack Welles » Thu Apr 11, 2019 2:29 pm

There are short term property bridging finance options available BUT the interest rates which don't look too bad when it's just for a few weeks or two months (tops) taken as an amount loaned against the amount receivable (usually they are property selling situations to cover rates etc) are scary over the longer term. And they are repayable as lump sums, eg, in your case when the normal bond is registered on completion of the build (this would need to be pre approved to give the bridging finance house comfort).

In any borrowing scenario remember the five questions: how much? what for? how do we get our money back? how do we get our money back if we don't get our money back (security) and what else do you bring to the party? (move your banking business across etc).

So a little more info required for possibly a better option:

Was the unimproved property paid for in cash?

Have you investigated specifically building loans (against a registered mortgage) where the drawdown is linked to the progress of the build?
Jack Welles (thriller_author pen name)
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Eddie Haynes-Smart
Textbook - "The Lore of Negotiation"
http://www.loreofnegotiation.com
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Re: Return on Investment

Unread post by macdaddy » Thu Sep 05, 2019 1:47 pm

Just putting it out there... which I though may be of interest to some..

We have a 2 bedroom investment flat available for sale, with a decent on time paying tenant that has just signed for another year.

The details are as follows:

It is a 2 bed, 1 bath middle unit in Inyati Sands in Douglasdale JHB. The complex is very sought after with club house, pools etc.

Asking price : R 850 000.00

Rental income : R 7500.00 pm excl elec (should be able to increase to R 8000.00 or more next year)

Levies/ rates and taxes : R 2200.00

You would incur a shortfall of around R2000 to R2500 pm on this investment with a 100% bond, but it should start breaking even in the next 2 years or so.

The reason I am selling is to free up some capital for another property purchase.

Please pm me if you might be interested.

Thanks!
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Jack Welles
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Re: Return on Investment

Unread post by Jack Welles » Thu Sep 05, 2019 1:56 pm

Might get a better response in the Personal Classifieds/Non-Aviation items forum.
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Re: Return on Investment

Unread post by macdaddy » Thu Sep 05, 2019 4:22 pm

Jack Welles wrote:
Thu Sep 05, 2019 1:56 pm
Might get a better response in the Personal Classifieds/Non-Aviation items forum.
Thanks, I think I will. Just thought to put it on this thread as it was related to the previous posts :)

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