Investors, there is Blood in the streets.
Is this the best time to Buy to Rent Property in South Africa?
In this video Neil Vorster and Josephine van Wyk discuss timing of property Investment. DIscover if it is now tim eot buy to Rent property in south africa
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Time to buy the right type of property, in the right place at the right price.
Just before South Africa went into a covid-19 induced lockdown, I pubilshed a video predicting the interest rate drop
[ Ссылка ]
In January 2020, pre carona, the prime interest rate was 10.25%
Now in August 2020 8 months later the South African prime interest rate has dropped to 7.00% and we expect the interest rate to drop even further in the governments effort to kickstart the country again .
Opportunity knocks.
Lets look at an example
R 700 000 bond
Rental R 7000
Bond repayment at prime of 10.25% was R6 273
Bond repayment at 7% is now R 4 657 (that’s R1616 lower!! )
Monthly cashflow at present :
Rental income R 7000,
Bond R 4 657
Levies R1 383
Rates R 304
Total expenses = R6 344 ( R 656 per month cashflow surplus from day 1 if you manage your property yourself.)
If you prefer passive income and use an agent to manage your property for you. After all the agency fees, you can expect a monthly shortfall of about R390 per month, whereas in January this year your monthly shortfall would have been around R 2000.
My prediction, the property prices will stay the same or maybe even drop a little in the short term, but the holding costs have dropped (more than 50%) so property is already half price to hold!
We have just been handed a great big 50% discount on investment properties.
The wise money know this and will be buying as much as they can, the fearful population will either
1) Sell all their properties in a panic
2) Take a wait and see approach to investing in property
The interest rates will inevitable rise again, but I expect they will do so gradually over a few years, giving time for rentals to increase and adding impetus to the increase of rentals.
What are you waiting for, book a coaching session with Neil to learn how to get in now, buy the best type of property, in the best location and at the right price
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#BuytoRentPropertySouthAfrica #timetobuy #buytolet
