Thank you for the comment, we appreciate it. The best indication would be if your rental income, covers the monthly expenses, fixed and/or variable depending on your pricing model. And based on that return, project how long it would take before you have earned back your capital, This would give you a good indication of whether your investment is performing well or not.
Residential property rental is the most unprofitable business ever even worse when it is via a mortgage (Bond). For example a 2 bedroom in Fourways going for R900,000 will cost you R9700 per month on repayment add levies and rates you are on R12200 against a monthly rental of R9000 giving negative position of R3200. You in a negative cash flow of R3200 per month, this is not an investment but funding someone's lifestyle. It could make sense if the same property is put on Airbnb than a tenancy deal. The truth is many people speak highly of property but no one gets down to the real numbers. Many of these bank owned homes are not giving the borrowers a return. Take note I used bank owned as this is not your house until you fully pay for it. We need to educate each other more on property. Makes sense to develop and resell than renting. Buy an old house, get to put up units and resell. That is if you qualify for that R10million finance.🎉
Not always the case , there are people who are making profits through renting a mortgage house, that's why the location and the price are very important 👌.
You might want to give examples and here we are looking at mortgaged house as of 2024 or at least 2023. We cannot talk of a person that got a house in 1994 or 2000. Equally important to look at return on investment.
Change your target market. Focus on the low-income residential market, Student accommodation and commercial leasing. That is where the pot of gold is, Bud.
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Suitable and RESPONSIBLE tenant is so important 😢 Both for that profit and so your investment is looked after. Thank you for this!
I really enjoyed this! May we also have a video that compares building vs buying😬
We're working on this one too 👌🏽
Really insightful. Please keep the information coming. Can't wait for the next one.
How can I know if my investment is performing well?
Thank you for the comment, we appreciate it.
The best indication would be if your rental income, covers the monthly expenses, fixed and/or variable depending on your pricing model. And based on that return, project how long it would take before you have earned back your capital, This would give you a good indication of whether your investment is performing well or not.
Elite content. Thank you so much.
Residential property rental is the most unprofitable business ever even worse when it is via a mortgage (Bond). For example a 2 bedroom in Fourways going for R900,000 will cost you R9700 per month on repayment add levies and rates you are on R12200 against a monthly rental of R9000 giving negative position of R3200.
You in a negative cash flow of R3200 per month, this is not an investment but funding someone's lifestyle. It could make sense if the same property is put on Airbnb than a tenancy deal.
The truth is many people speak highly of property but no one gets down to the real numbers. Many of these bank owned homes are not giving the borrowers a return. Take note I used bank owned as this is not your house until you fully pay for it.
We need to educate each other more on property. Makes sense to develop and resell than renting. Buy an old house, get to put up units and resell. That is if you qualify for that R10million finance.🎉
Not always the case , there are people who are making profits through renting a mortgage house, that's why the location and the price are very important 👌.
You might want to give examples and here we are looking at mortgaged house as of 2024 or at least 2023. We cannot talk of a person that got a house in 1994 or 2000.
Equally important to look at return on investment.
Change your target market. Focus on the low-income residential market, Student accommodation and commercial leasing. That is where the pot of gold is, Bud.
But the rate of returns on rental compared to build and sell?
Great content thank u very informative