If you enjoyed this video, please subscribe to my channel. The calculations used in this and other videos are available to members of my channel. Join my channel to get access to perks: th-cam.com/channels/e1BIG7YE1XqWoDsAHGsYzw.htmljoin
So much thoughtful content covering a number of very interesting topics, would be great if this was also available in (e-)book format with all the research graphs/stats/examples and some key references so one can read (and repeat) at leisure and digest - many of the points are based on long-standing investment wisdom which are explained in an easy-to-understand way !! I'm sure many of your followers would enjoy having the (e-)book as well !!
Hi Carla. Please can you also do a video where the property investor reinvests all the income in additional properties. That will also give you the compounding effect as the ability to accumulate more properties becomes more accelerated as time goes by. Additionally there is no area that I am aware of in Cape Town that you can get the 1% per month however the capital appreciation is exponentially higher than in the rest of RSA. Thank you for your informative videos.
Thanks for the feedback! The cashflows could be used to acquire additional properties but because the stock market returns are superior the additional properties will not catch up to the stock market portfolio. I'll add it to the list to explain in a video, thanks for the suggestion 😊
Volledig, deeglik en omvattend. Dankie! Net een kritiek, Ivm die aanname dat 'n huurder geld uit beleggings sal onttrek om huur te betaal voor aftrede.
Hi Carla, Love your content. Many South Africa professionals work abroad where they earn high incomes, but are also taxed at high marginal rates. Consider running the same scenario’s with property investment included, but incorporate the effects of negative gearing where you offset negative cash flows against personal incomes to lower one’s personal income tax rate and and then reinvest. I wouldn’t be surprised if you’ve already modelled such a scenario. Groete
Hi. This was very informative, I wish I had had this information years ago! Would you be able to make a video comparing paying off your personal property as quickly as possible versus paying the minimum amount and investing the difference in stocks?
Hi Mike, in a high interest rate environment (like we are in now) I would say it's better to allocate capital to reduce your mortgage and reduce your borrowing costs. But I would also encourage you to get into the stock market, even if you only start with small monthly amounts in your Tax Free Savings Account investing into a global low-cost ETF (assuming you are South African). PS: not personal investment advice, do your own research
Hi Carla. Excellent video. Full of a lot of little tips and gives a good view on investment thinking ! I do have one question for you. For a property investor, many times the goal would be to generate monthly cash flow from a property. Yes, it might take some time but after the (e.g.) ~5th year, you start getting cash flow from your property in y6 onwards. Investing in stocks gives better returns but that is if I dont gain anything and dont touch my money for 40 years. Does the stock market option still perform better if you want to get cash flows and supliment your monthly salary with an additional income stream? Thanks so much !
Hi Carla, thank you so much for your videos. I love your global approach to investing. I enjoy playing around and modelling out different scenarios like this. Would it be possible to get access to your excel spreadsheet you use in your videos?
Hi Marthinus, I am testing a membership option which provides access to all my financial models. The first one I share will be the one used in this video and can be used to analyse different investment property scenarios. Membership details are on my page.
Great video, thanks Carla. From a risk perspective, do you think a money market fund would be a good alternative to a global ETF? Assuming global ETF can keep performing at the accelerated pace we've seen in the past 5yrs and money market woul guarantee capital and linked to high interest rates...
If you're talking about longterm investments money market would not be smart. For long term investments it's crucial to take on equity risk. Have a look at my blog on my website, specifically the blog titled: Warren Buffet warns of this “terrible investing mistake”
@@MoneywithCarla agree, in the longterm probably not the best strategy. But if I've sold a property now and get access to R1.5m cash wouldn't the safe and smart option in the interim be something like Alan Grey MM Fund at a guaranteed 9% compound for as long as high interest rates persist?
Hi Carla could you do videos on the best investment vehicles for retirement as well as retirement scenarios such as when you want to retire at 55. How much money would you need and what would be the best way to preserve your money and grow it while retired.
The biggest factor here which people in general do not take into account about buying property is: the rand depreciation and compounding effect. Thanks for a great video and doing a lot of effort to teach us! ❤
@@jointhewild My greatest observation in wealth distruction in RSA is that I bring in euros. When I brought in a capital amount of €100 000.00 in 2017 it was worth R1 450 000.00, today that same same R1.45 is only worth € 73 000.00, this is the biggest issue with the RSA economy. This is excluding the eroding effect of inflation. So I am with you there.
All this assumes that you are NOT a non-US person, because if you ARE a non-US investor, then a stock market investment situs in the US can incur estate duty of up to 40%.
@@yeladim10 Irish-domiciled UCITS do not attract US situs tax. This is just one example of getting exposure to US assets while being smart about US situs tax.
Great video, thank you. Is it possible to work out a rule based on net rental yield? I’m thinking about scenarios like RIETs or fractional property ownership on Easy Equities. There, the rental yield is net, and somewhere between 5-10%. Are these good investments?
Do they quote a total return (capital appreciation and rental yield)? Typically the fees on these are quite high and I have not seen any that I would be excited about.
@@MoneywithCarla They quote the capital appreciation as IRR, and the estimate net rental. The gross rental information is also available for each property. The fees / costs are higher than if you did it yourself, but that is off set by being hassle free and being able to diversify your property portfolio. Perhaps the biggest advantage I like is that I’m not taking any loan to buy the property. Having said all that, the same type of benefits can be achieved via REITS i guess
When buying property in your personal name, it will lead to these tax issues. If you are thinking about investing in rental properties, one must think about the right structures to buy so that you can minimize the taxes and accumulate property so you stay in a financial loss but accumulate assets. I would love to know if an ordinary person could buy stock with leverage.
I have leverage on my stock portfolio but brokers tend to vet your investment experience before allowing leverage. It increases the risk in the portfolio so I would not necessarily recommend it.
If the landlord pays cash, the same amount could have been invested in the stock market and the stock market portfolio would outperform the property (unless an exceptional rental income is earned).
If you enjoyed this video, please subscribe to my channel. The calculations used in this and other videos are available to members of my channel.
Join my channel to get access to perks:
th-cam.com/channels/e1BIG7YE1XqWoDsAHGsYzw.htmljoin
So much thoughtful content covering a number of very interesting topics, would be great if this was also available in (e-)book format with all the research graphs/stats/examples and some key references so one can read (and repeat) at leisure and digest - many of the points are based on long-standing investment wisdom which are explained in an easy-to-understand way !! I'm sure many of your followers would enjoy having the (e-)book as well !!
Hi Carla. Please can you also do a video where the property investor reinvests all the income in additional properties. That will also give you the compounding effect as the ability to accumulate more properties becomes more accelerated as time goes by. Additionally there is no area that I am aware of in Cape Town that you can get the 1% per month however the capital appreciation is exponentially higher than in the rest of RSA. Thank you for your informative videos.
Thanks for the feedback! The cashflows could be used to acquire additional properties but because the stock market returns are superior the additional properties will not catch up to the stock market portfolio. I'll add it to the list to explain in a video, thanks for the suggestion 😊
Volledig, deeglik en omvattend. Dankie!
Net een kritiek, Ivm die aanname dat 'n huurder geld uit beleggings sal onttrek om huur te betaal voor aftrede.
insightful, easy to follow and so humbly presented, thank you!!
Hi Carla,
Love your content. Many South Africa professionals work abroad where they earn high incomes, but are also taxed at high marginal rates. Consider running the same scenario’s with property investment included, but incorporate the effects of negative gearing where you offset negative cash flows against personal incomes to lower one’s personal income tax rate and and then reinvest. I wouldn’t be surprised if you’ve already modelled such a scenario. Groete
Hi. This was very informative, I wish I had had this information years ago!
Would you be able to make a video comparing paying off your personal property as quickly as possible versus paying the minimum amount and investing the difference in stocks?
Hi Mike, in a high interest rate environment (like we are in now) I would say it's better to allocate capital to reduce your mortgage and reduce your borrowing costs. But I would also encourage you to get into the stock market, even if you only start with small monthly amounts in your Tax Free Savings Account investing into a global low-cost ETF (assuming you are South African). PS: not personal investment advice, do your own research
Great content! Worth adding in some future videos: R40mil in 40 years time isn't the same as R40mil in today's money.
Good point! I mentioned this in the previous video but will add again in future. Thanks for the feedback!
Amazing video! Well done. Jy bet baie tyd in gesit om dit te doen. Baie mooi verduidelik. Kan baie mense baie help. Waardeer dit
Authentic, relevant to SA and easy to understand.
Thank you very much
thank you so much please do a video on compounding investing, what happens if you are only starting at close to retirment?
So in depth but very easy to understand, thank you
What a great explanation!
Hi Carla.
Excellent video. Full of a lot of little tips and gives a good view on investment thinking !
I do have one question for you. For a property investor, many times the goal would be to generate monthly cash flow from a property. Yes, it might take some time but after the (e.g.) ~5th year, you start getting cash flow from your property in y6 onwards.
Investing in stocks gives better returns but that is if I dont gain anything and dont touch my money for 40 years. Does the stock market option still perform better if you want to get cash flows and supliment your monthly salary with an additional income stream?
Thanks so much !
Thank you Carla for the geat content.
Great content as always!
This is my first time watching your channel. Really amazing content and attention to detail, in my opinion. Thank you.
Thank you!
Great video! Thanks.
Hi in UK we can not remove the interest please do a UK market video
Hi Carla, thank you so much for your videos. I love your global approach to investing. I enjoy playing around and modelling out different scenarios like this. Would it be possible to get access to your excel spreadsheet you use in your videos?
Hi Marthinus, I am testing a membership option which provides access to all my financial models. The first one I share will be the one used in this video and can be used to analyse different investment property scenarios. Membership details are on my page.
Great video, thanks Carla. From a risk perspective, do you think a money market fund would be a good alternative to a global ETF? Assuming global ETF can keep performing at the accelerated pace we've seen in the past 5yrs and money market woul guarantee capital and linked to high interest rates...
If you're talking about longterm investments money market would not be smart. For long term investments it's crucial to take on equity risk. Have a look at my blog on my website, specifically the blog titled: Warren Buffet warns of this “terrible investing mistake”
@@MoneywithCarla agree, in the longterm probably not the best strategy. But if I've sold a property now and get access to R1.5m cash wouldn't the safe and smart option in the interim be something like Alan Grey MM Fund at a guaranteed 9% compound for as long as high interest rates persist?
Hi Carla could you do videos on the best investment vehicles for retirement as well as retirement scenarios such as when you want to retire at 55. How much money would you need and what would be the best way to preserve your money and grow it while retired.
The biggest factor here which people in general do not take into account about buying property is: the rand depreciation and compounding effect.
Thanks for a great video and doing a lot of effort to teach us! ❤
@@jointhewild My greatest observation in wealth distruction in RSA is that I bring in euros. When I brought in a capital amount of €100 000.00 in 2017 it was worth R1 450 000.00, today that same same R1.45 is only worth € 73 000.00, this is the biggest issue with the RSA economy. This is excluding the eroding effect of inflation. So I am with you there.
All this assumes that you are NOT a non-US person, because if you ARE a non-US investor, then a stock market investment situs in the US can incur estate duty of up to 40%.
@@yeladim10 Irish-domiciled UCITS do not attract US situs tax. This is just one example of getting exposure to US assets while being smart about US situs tax.
Great video, thank you. Is it possible to work out a rule based on net rental yield? I’m thinking about scenarios like RIETs or fractional property ownership on Easy Equities. There, the rental yield is net, and somewhere between 5-10%. Are these good investments?
Do they quote a total return (capital appreciation and rental yield)? Typically the fees on these are quite high and I have not seen any that I would be excited about.
@@MoneywithCarla They quote the capital appreciation as IRR, and the estimate net rental. The gross rental information is also available for each property. The fees / costs are higher than if you did it yourself, but that is off set by being hassle free and being able to diversify your property portfolio. Perhaps the biggest advantage I like is that I’m not taking any loan to buy the property. Having said all that, the same type of benefits can be achieved via REITS i guess
Would you be able to make your excel sheets available?
When buying property in your personal name, it will lead to these tax issues. If you are thinking about investing in rental properties, one must think about the right structures to buy so that you can minimize the taxes and accumulate property so you stay in a financial loss but accumulate assets. I would love to know if an ordinary person could buy stock with leverage.
I have leverage on my stock portfolio but brokers tend to vet your investment experience before allowing leverage. It increases the risk in the portfolio so I would not necessarily recommend it.
Great 👌 video as black South Africans most of us not exposed to these ❤😮
Stocks is the best asset class not even close
Carla focus on speaking slower.
You are giving great facts but are rushing through them not letting it sink in.
Thanks for the feedback!
you can slow down the speed to the video playback...
Slow down the video....
I would love to see a video where the landlord pays cash for the property instead of taking out a mortgage
If the landlord pays cash, the same amount could have been invested in the stock market and the stock market portfolio would outperform the property (unless an exceptional rental income is earned).
@@MoneywithCarla Of course. Thanks for taking the time to clarify!