VUSI THEMBEKWAYO ON PROPERTY INVESTING USING DEBT
ฝัง
- เผยแพร่เมื่อ 20 ต.ค. 2022
- As a trusted advisor to Fortune 500 companies and blue-chip corporates across the world, Vusi has come to be one of the wealthiest young people in Africa and was the youngest African entrepreneur to grace the cover of Entrepreneur Magazine. He has also appeared on CNBC, Bloomberg and Inc500.
Here are his top tips on how to use debt the right way when investing in properties in Kenya, Africa and beyond.
#realestate #vusithembekwayo #debt ##propertyinvestment #propertyinvesting #africa #kenya
For more visit the following links:
Valuable Homes Ltd Site: valuablehomes.co.ke/invest-in...
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Email: sales@valuablehomes.co.ke
invest@valuablehomes.co.ke
This is good valuable information
Thank you so much
Hi Vusi. This is all good on the surface. However you left a few details like,
1. Everytime you go back to the Bank, you have to be re-assessed for credit.
2. If at any point in time, your property is vacant, you have to be able to pay back the Bond from your pocket.
3.. There is various cost involved ( i.e. maintenance / Rates and Taxes / Management) to the property that needs to be factored in here.
So you need a lot of muscle and perseverance in this game. No glamour at all. LOL
I think it was a simplified explanation of the process, I think his explanations also factor in time constraints. It is also the responsibility of the attendees and viewers online to conduct further research.
I agree with you. Knowledge is power and trying to see things from the possibilities point of view
Real Estate is about information
I believe he emphasized, "assuming demand exceeds supply?" So the issue of vacant buildings cant apply here. And again, you can't pay taxes if you aren't reporting a profit. That is why he is saying keep on buying assets like buildings I.e increasing Capital Expenditure so your Income statement shows 0 Operating income. This is how Amazon, a company worth hundreds of billions pays zero Corporate tax. All the other costs you have talked about are already taken into consideration when calculating profit, nothing new there. And, debt is also tax-free because the amount you pay in Interest is factored into your operating income before taxes. The bank will be more than happy to give you more money if all the above are at play, not that hard.
Robert Kiyosaki style of investing and legally evading tax
Before 2008 this strategy was the norm, but now when applying for credit an overall affordability stress test is done and the banks aren't lenient AT ALL when it comes to extended finance. Those days are over. The ones qualifying for additional home loans have serious non-rental income streams which motivates the banks to grant additional finance. I know because I have been in the property investment game for almost 2 decades already. Ponder upon this - if first-time (often professional) homeloan applicants are struggling to successfully be granted modest home finance, why would Vusi's example be as easy as cutting through apple pie for the potential property investor? Also, the rental-property investment market is dead in the water. Rather invest in shares. It's safer, less stressful and BY FAR present way higher returns.
Thank you for the feedback. We'll do more research on that
Wise words Riaan, I hope people can listen to your valuable advice
How can we get in touch with you @riaanhrndricks9207
Am from Nigeria, and I do phones accessories business but I don't really know how not let risk my business while trying to invest and secondly I don't know on what I should focus on investing, am 23.
@@user-ec7rv8oz8v what do you mean?
Tip, when you buy these properties, buy them under a trust, not under your name coz should anything happen to you, bye bye properties
You're right. It also protects you from liabilities Incase of anything
Also, buy buy everything you own, as well as your credit rating...
G Advice
Thank you
Nowadays being a landlord with one or even two small properties is a waste of your time and resources, too much stress and work for the return, unless your strategy is to park capital long term. Nowadays you can get exposure to property market through ETFs, with no drama of vetting tenants. Even so, there are better investments than property ETFs. This strategy is not as effective as it once used to be. The risk they don't tell you is, your tenant might fail to pay rent, it can be costly to evict, even taking months, during that time if you also fail to make bond 3 months, you risk losing the property.
That's true. The goal should be to expand the portfolio over time
Hmmmm. This will be easier when buying and selling cars
Okay
Very good but ey approach this with caution otherwise 💔
Yes definitely you need expert advice
This cannot work as the main factors are credit and affordability.. tell me, if you income is stil the same, which bank is going to advance you more credit?
Based on the projected income from the rental properties
@valuablebrandske banks don't work on projected income. even on proven monthly rental, they only use 50% of that towards affordability.. imagine having 10 properties with 10 bonds, rates levies , maintenance etc and 3 of your tenants default on average 3 times a year.. that would make this a no win investment and you a very high risk customer.. then factor in the interest rate hikes over the past year and wala, it's curtains for u..
Well, not true anymore. Property in SA is at 5% growth pa for the last 15 years. So, with this calculation, you will only be elligible to leverage your FIRST new property in 3years. Sorry for you!!!
Wasted in South Africa! Julius Malema is going to grab your home with
out compensation anyway!
Why
This is good valuable information
Thank you.
This is good valuable information
Thank you