Infinite ROI is the way to go and is an aspect many investors fail to grasp when comparing property investing to other types of investment. This is the way I have/am building by portfolio. Just beware on the risks. You need to be able to absorb interest rate shocks - especially in the early years. Also dont get greedy by taking more and more debt out as equity in the property grows. I try to get all my investment out and then just let equity grow over the long term. This allows me to "go again" and also allows the debt to depreciate with inflation and bring down the LTV, reducing overall risk.
Absolutely, thanks for sharing your insight in the comments. The biggest risk is over leveraging. The easiest way to make sure this doesn't happen is to always have a healthy reserve fund. Thanks for watching 🙌🏻
Absolutely, anything worthwhile doesn't come easy. But the first one is the most difficult. From there, it's rinse and repeat. Thanks for your comment. You are 100%, and there is always risk involved. You just need to decide whether it's worth taking the risk or not 💪🏻
The best advice would be to be proactive in the beginning. Also check out this video 👌🏼 th-cam.com/video/jRno9cUyfbQ/w-d-xo.htmlsi=al-qnPep5_Opjdi4 This should give you the right knowledge ✅️
As a property professional registered in South Africa: 1. You did not account for inflation. 2. No mention of interest fixed to prime, and its affects on long term borrowing. 3. Did not account for vacancies through the property cycle. 4. Did not account for an increase in property taxes due to perceived value in property, which must be reported to the municipality depending on bylaws or the fact that property ownership is a taxable income which must be declared on your IRP5 or the fact that this property, if a second or third property under your ownership will be subject to Capital Gains Tax upon its sale. 5. Did not account for 10% maintenance fee and insurances. In short. Your financial advice is flawed. However, I don’t recommend anyone take property financial advice from a TH-camr to begin with unless they state that they are a Professional Quantity Surveyor or a Professional Valuer as we will not make such mistakes when advising clients. #Misinformation
I’m from Bloemfontein, and maybe the first part of charging R5000 for rent might be a bit over reach because properties in that particular building go for about R4500 max. But the second point about adding a third room, I can see how that would work because the property is close to town and universities. Thanks for a great video👏🏽👏🏽
Yeah, yeah, I have heard that before. I have been in property for the last 30 years. There is no such thing as buying property "for free". If you really want to help people, then be honest up front. Then deal with the principle of cashflow. So, your statement about "too good to be true" is in fact correct.
Im not sure if you really understand cash flow. If you can't find properties that meet the 1% rule, it means you are running a shortfall strategy and not cash flow. Your approach and comments are very aggressive and seems to be coming from a bad place. I suggest approaching the comment section with a bit more tact.
@@louisreynhardt Show me the 1% deals you got. My comments serve to protect people that may be misled by your "easy money" approach. Making good money from residential property is possible, but not in the way you tell it.
@louisreynhardt Not gonna lie this video has a lot of value. I appreciate you and your channel for this information I'm 19 years old and thanks to you I know more about the real estate game than most people Thanks "Guys"🤣🤣🤣
What about property insurance and unexpected maintenance, surely a percentage of that income should be reserved for maintenance and you would need to take out some form of insurance on the property?
Great question, insurance forms part of your levies. Maintenance is not really a monthly expense and more of a reserve fund. But you can absolutely include it in your monthly expenses. With that said. The traditional single let will effectively be even worse than in this video. Thanks for watching
How does work if you signed surety for a property in a companies name and managed to come out profitable. Will the bank let you sign surety on another property then? If all your stats are the same?
Great question. Yes, you will be able to sign surety for another property if you have the affordability left in your own name. You can also payout the gains to your personal name to increase your affordability 💪🏻
Louis a bit off topic but Nvidia is trading at 114 dollars I already bought at 117 do you think I should buy again, I think it'll grow exponentially over the next few years. I'd love a second opinion
I would say long-term +-5 years entering around $110-$120 is a good time to buy the dip. The short term, especially next week, might be a bumpy ride. You can always DCA into tne stock jn the next few weeks to avoid buying before a sudden drop.
I wish I came across your videos sooner. I literally spend most of my time watching your videos now with a pen and paper. I am very grateful for the information you sharing.
@@louisreynhardt @johannesr9166 Can you use the interest rate on the bond, levies and rates as deductibles on your tax like you can with the buildings maintenance?
When you want to gethold of your "equity" later on. If you dont do this. You will have to pay higher registration fees again. Unfortunelty, this is a complex topic.
Yes infinite return ,but what if COVID or a pandemic hits .Then you don't have people leasing the property for 3 to 6 months? .So you risk basically your own credit score and assets for a R400 return income .This is excluding repairs during the years of rent .And can you guarantee that you will have someone leasing the place for every single month for say 15 to 20 years ? .And insurance is going up drastically. It probably worked in the old days .But in 2024 it's highly risky so should anyone attempt this ,you have to run your numbers very well so that you don't end up broke.
Thanks for your jnsight. There will always be risk. You will ultimately have to decide whether the risk is worth it for you or not. Some people will never take action due to potential risk.
@louisreynhardt I think I am getting a little a head of myself 🤣🤣 even contacting estate agents for site viewing when I have 0 bucks to show , it's for the experience 🤣🤣
Bloemfontein property prices has increased steadily over the last decade and it will continue to do so. Refinancing is noy based on appreciation alone, but on buying undervalued assets and adding value. I would syggest studying the concept of equity a bit more. All the best
@@louisreynhardt Dear Louis, I have been doing property for 30 years. Western Cape and Northwest province. I know very well when I see bulldust and in your case it is evident. The banks are way too smart nowadays, yet you fail to mention it. Good luck, bro, but I am not convinced.
R 500, 000 property in Bloemfontein collecting R 5,000 a month is a 1% to price ratio which is unachievable anywhere in South Africa. So you are starting with a lie. Please be honest and deal with the principle of cashflow.
Thanks Johan for committing on my videos and sharing your view. Im always open to different opinions. You are however quite wrong. I have achieved this 1% with every single property that I own even though some are single lets. I have achieved 3% or more on my multi lets, which is effectively a gross yield of 36% . If you have been in property for 30 years and never achieved the 1% you are sadly losing money every month or carrying large shortfalls ( there's nothing wrong with this strategy, i just dont use it) Being open to new ways of investing is important and sticking to 1 strategy for 30 years might not be the smartest move imo. Thanks again for watching and I hope that you can continue to grow your Portfolio
@louisreynhardt After 30 years my portfolio has matured very well. Since the bulk of my investments were done in the Western Cape, some properties have trebled in value and rentals up to five fold. Yet, not once, not ever could I get 1%. That is where your advice is downright dangerous. You may achieve this in remote pockets in Bloemfontein, but I assure you, not easily anywhere else in South Africa.
Hi there, I'm a student at UFS, and I've recently started a property agency specializing in providing guaranteed student tenants for property owners. Who's interested?
@@bonganimashimbye3953 I apologize for the late reply. I've tried several times to post a reply with communication details, but it keeps disappearing. I'm not sure if it's due to TH-cam policies or something else. I'll also try to post communication details in my bio to make things easier.
@@calmmusic6374 Haha no, I actually know how accounting and plain logic works. If you buy a product to sell for profit that doesn't mean you got it for 'free'. The same with real estate - if you put down a deposit for a property then recoup that money later on doesn't mean you got the property for 'free'. So this remains clickbait. "How to buy a property for FREE, but first put down a deposit of R70,000". Yeah right.
@MnrBloemie No shit bro, if you thought you can buy a property literally for free you definitely dont know what you are talking about 😂 The concept means you buy a property with opm which is free money.
MID YEAR PROMOTION ENDS 31ST JULY
BUY My Property Course here : payhip.com/LouisReynhardt
Hi Guys. We are Louis
🤣💪🏻💪🏻💪🏻💪🏻
🤣🤣🤣🤣
Ha ha ha ha
Infinite ROI is the way to go and is an aspect many investors fail to grasp when comparing property investing to other types of investment. This is the way I have/am building by portfolio. Just beware on the risks. You need to be able to absorb interest rate shocks - especially in the early years. Also dont get greedy by taking more and more debt out as equity in the property grows. I try to get all my investment out and then just let equity grow over the long term. This allows me to "go again" and also allows the debt to depreciate with inflation and bring down the LTV, reducing overall risk.
Absolutely, thanks for sharing your insight in the comments. The biggest risk is over leveraging.
The easiest way to make sure this doesn't happen is to always have a healthy reserve fund. Thanks for watching 🙌🏻
Until 1 or 2 clients dont pay or u have a 3 month vaccancy. In order for this to work everything needs to go perfectly all the time forever.
Absolutely a possibility. That should not stop your from investing. Mitigate the risk with a healthy reserve fund 💪🏻
Yea, u right, some clients are really a bad luck. Eish I want to invest but this point you highlight scares me.
@eliasobed5743 thanks for sharing. Remember investing will always have risk. Make sure you have good savings to mitigate this risk. 👌
I have been through that, every business needs an experience and the is only one way to learn....
Correct Jamie. These "slick" pretenders are everywhere. Yet, they continue to spread their ignorance to the ignorant.
I have an Overwhelming Gratitude for this Content and This Channel.
Thank You Louis. ❤❤❤❤
Please Don't Stop 🙏🙏🙏🙏
Thank you so much for your comment. I really appreciate the support, and im so glad to hear my content is helpful 💪🏻
Just discovered your channel yesterday. Such wealth of information ❤
Welcome to the community and thanks for your comment 💪🏻 💪🏻
Priceless INFORMATION!!!!!!!!!!! Thanks Louis! 😮😮😮
Just as he says it guys! That’s how it’s done!!!!
Appreciate the positive comment my friend.
Thanks for watching 💪🏻💪🏻
No, that is not how it is done. Do your homework mate.
@@usefulmall I know because I’ve been doing it for a few years now.
@tpmash 🏆 Champ💪🏻
@@louisreynhardt This is info is Gold! I know for a fact! Thank you once again🥳
I like how the free property is in the Freestate
🤣🤣💪🏻💪🏻
Hi Louis please make a video on your own real estate portfolio
Great suggestion. Ill look into this and try to make some practical videos
Honestly a good concept but it's not for the fainthearted. High risk high reward. As the state of the property will be affected due to the clientele.
Absolutely, anything worthwhile doesn't come easy. But the first one is the most difficult. From there, it's rinse and repeat. Thanks for your comment. You are 100%, and there is always risk involved. You just need to decide whether it's worth taking the risk or not 💪🏻
Still here and learning
Appreciate the support my friend...Hope this video helps 🙌🏻
Hi Louis thanks for the great content I have learnt a lot from you and hope to join your class very soon. Does heloc apply in South Africa.
Absolutely, we juat call it something a bit different. Thanks for watching 🙌🏻
Very good content thank u
Thanks for watching. Appreciate your comment 🙏🏻
@louisereynhardt any advice on protecting yourself against renters that default?
The best advice would be to be proactive in the beginning.
Also check out this video 👌🏼
th-cam.com/video/jRno9cUyfbQ/w-d-xo.htmlsi=al-qnPep5_Opjdi4
This should give you the right knowledge ✅️
Hie guys this Loui,i just discovered your channel today thanks a lot you gained a follower
Welcome to the channel my friend 💪🏻💪🏻
As a property professional registered in South Africa:
1. You did not account for inflation.
2. No mention of interest fixed to prime, and its affects on long term borrowing.
3. Did not account for vacancies through the property cycle.
4. Did not account for an increase in property taxes due to perceived value in property, which must be reported to the municipality depending on bylaws or the fact that property ownership is a taxable income which must be declared on your IRP5 or the fact that this property, if a second or third property under your ownership will be subject to Capital Gains Tax upon its sale.
5. Did not account for 10% maintenance fee and insurances.
In short. Your financial advice is flawed. However, I don’t recommend anyone take property financial advice from a TH-camr to begin with unless they state that they are a Professional Quantity Surveyor or a Professional Valuer as we will not make such mistakes when advising clients.
#Misinformation
@@PhenomenonGuy Well analysed and correctly presented. Thank you for valuable and mature input.
This is good insight thank you so much Louis
Im glad . Thank you for watching 🙏🏻
I’m from Bloemfontein, and maybe the first part of charging R5000 for rent might be a bit over reach because properties in that particular building go for about R4500 max.
But the second point about adding a third room, I can see how that would work because the property is close to town and universities.
Thanks for a great video👏🏽👏🏽
Thanks for sharing my friend. Absolutely, the multi let strategy can make a lot of sense. Thanks for supporting the channel. 💪🏻
Yeah, yeah, I have heard that before. I have been in property for the last 30 years. There is no such thing as buying property "for free". If you really want to help people, then be honest up front. Then deal with the principle of cashflow. So, your statement about "too good to be true" is in fact correct.
Im not sure if you really understand cash flow. If you can't find properties that meet the 1% rule, it means you are running a shortfall strategy and not cash flow. Your approach and comments are very aggressive and seems to be coming from a bad place. I suggest approaching the comment section with a bit more tact.
@@louisreynhardt Show me the 1% deals you got. My comments serve to protect people that may be misled by your "easy money" approach. Making good money from residential property is possible, but not in the way you tell it.
What’s up Louis it’s guys here 👀
🤣🤣🤣💪🏻💪🏻💪🏻
Hey Louis, It's guys here
🤣🤣💪🏻💪🏻
@louisreynhardt Not gonna lie this video has a lot of value. I appreciate you and your channel for this information
I'm 19 years old and thanks to you I know more about the real estate game than most people
Thanks "Guys"🤣🤣🤣
Do you charge your courses in dollars as displayed on the site or is the dollar sign just for display?
Yes its charged in dollar, but you can still use your normal cheque or debit card. It converts automatically 💪🏻
@@louisreynhardt thank you for the clarity, I needed it
What about property insurance and unexpected maintenance, surely a percentage of that income should be reserved for maintenance and you would need to take out some form of insurance on the property?
Great question, insurance forms part of your levies. Maintenance is not really a monthly expense and more of a reserve fund. But you can absolutely include it in your monthly expenses. With that said. The traditional single let will effectively be even worse than in this video. Thanks for watching
How does work if you signed surety for a property in a companies name and managed to come out profitable. Will the bank let you sign surety on another property then? If all your stats are the same?
Great question. Yes, you will be able to sign surety for another property if you have the affordability left in your own name. You can also payout the gains to your personal name to increase your affordability 💪🏻
Louis a bit off topic but Nvidia is trading at 114 dollars I already bought at 117 do you think I should buy again, I think it'll grow exponentially over the next few years. I'd love a second opinion
I would say long-term +-5 years entering around $110-$120 is a good time to buy the dip. The short term, especially next week, might be a bumpy ride. You can always DCA into tne stock jn the next few weeks to avoid buying before a sudden drop.
I wish I came across your videos sooner. I literally spend most of my time watching your videos now with a pen and paper.
I am very grateful for the information you sharing.
Huge pleasure. Thanks for watching and supporting the channel. 💪🏻💪🏻
What about income tax from the rent?
Won't this eat into the property's total income?
Absolutely, but this is something that you will have to look at in entirety with your portfolio or specific entity.
at least you can use the bond and renovation expenses to reduce the taxable income
@@louisreynhardt
@johannesr9166
Can you use the interest rate on the bond, levies and rates as deductibles on your tax like you can with the buildings maintenance?
@ThatGuy2005137 absolutely 💪🏻💪🏻
@Louis the only thing I don't understand is the registering the property for R550k when it costs R450k, what does that help with?
When you want to gethold of your "equity" later on. If you dont do this. You will have to pay higher registration fees again. Unfortunelty, this is a complex topic.
Can a foreigner visiting SA with a tourist visa, legally buy cash a flat in South Africa??
Yes as far as Im aware 💪🏻💪🏻
Yes infinite return ,but what if COVID or a pandemic hits .Then you don't have people leasing the property for 3 to 6 months? .So you risk basically your own credit score and assets for a R400 return income .This is excluding repairs during the years of rent .And can you guarantee that you will have someone leasing the place for every single month for say 15 to 20 years ? .And insurance is going up drastically. It probably worked in the old days .But in 2024 it's highly risky so should anyone attempt this ,you have to run your numbers very well so that you don't end up broke.
Thanks for your jnsight. There will always be risk. You will ultimately have to decide whether the risk is worth it for you or not. Some people will never take action due to potential risk.
Me with 0 income and 0 debt and interested in commercial property:📝📝
@MalehlohonoloMaleka always dream big my friend. 🙌🏻
@louisreynhardt I think I am getting a little a head of myself 🤣🤣 even contacting estate agents for site viewing when I have 0 bucks to show , it's for the experience 🤣🤣
@MalehlohonoloMaleka absolutely, buiilding up the right experience is the most important part. Keep it up
who caught his attention grabber in the beginning well done Louis
Thanks for watching my friend 💪🏻💪🏻🤣🤣
I wasn’t prepared for that intro 😅
🤣🤣💪🏻💪🏻
LOL! 'Whatsup Louie. It's guys here'
💪🏻💪🏻🤣🤣
Whats up louis its guys here? 😂
🤣🤣🤣
Refinance? In Bloemfontein, being your example, properties lose value over time. Your chances to refinance will have to wait for 10 years, mate!
Bloemfontein property prices has increased steadily over the last decade and it will continue to do so. Refinancing is noy based on appreciation alone, but on buying undervalued assets and adding value. I would syggest studying the concept of equity a bit more. All the best
@@louisreynhardt Dear Louis, I have been doing property for 30 years. Western Cape and Northwest province. I know very well when I see bulldust and in your case it is evident. The banks are way too smart nowadays, yet you fail to mention it. Good luck, bro, but I am not convinced.
R 500, 000 property in Bloemfontein collecting R 5,000 a month is a 1% to price ratio which is unachievable anywhere in South Africa. So you are starting with a lie. Please be honest and deal with the principle of cashflow.
Thanks Johan for committing on my videos and sharing your view. Im always open to different opinions. You are however quite wrong. I have achieved this 1% with every single property that I own even though some are single lets.
I have achieved 3% or more on my multi lets, which is effectively a gross yield of 36% . If you have been in property for 30 years and never achieved the 1% you are sadly losing money every month or carrying large shortfalls ( there's nothing wrong with this strategy, i just dont use it)
Being open to new ways of investing is important and sticking to 1 strategy for 30 years might not be the smartest move imo.
Thanks again for watching and I hope that you can continue to grow your Portfolio
@louisreynhardt After 30 years my portfolio has matured very well. Since the bulk of my investments were done in the Western Cape, some properties have trebled in value and rentals up to five fold. Yet, not once, not ever could I get 1%. That is where your advice is downright dangerous. You may achieve this in remote pockets in Bloemfontein, but I assure you, not easily anywhere else in South Africa.
Hi there, I'm a student at UFS, and I've recently started a property agency specializing in providing guaranteed student tenants for property owners. Who's interested?
I am interested
Keep up the good work. Hustle my friend hustle. Your Entrepreneurial spirit will save SA
@louisreynhardt thank you, Sir 🫡
@@bonganimashimbye3953 apologies for the late reply
@@bonganimashimbye3953 I apologize for the late reply. I've tried several times to post a reply with communication details, but it keeps disappearing. I'm not sure if it's due to TH-cam policies or something else. I'll also try to post communication details in my bio to make things easier.
It is still clickbait.
Probably because you have a boomer mindset .
@@calmmusic6374 Haha no, I actually know how accounting and plain logic works. If you buy a product to sell for profit that doesn't mean you got it for 'free'. The same with real estate - if you put down a deposit for a property then recoup that money later on doesn't mean you got the property for 'free'. So this remains clickbait.
"How to buy a property for FREE, but first put down a deposit of R70,000". Yeah right.
@MnrBloemie No shit bro, if you thought you can buy a property literally for free you definitely dont know what you are talking about 😂
The concept means you buy a property with opm which is free money.
@@calmmusic6374 OPM is not free money... it remains based on an asset you had to PAY for. Please stop...
@@calmmusic6374 And what the f*ck does the title say? My point is it is clickbait because of the phrasing, so please...