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11:26 pm
February 21, 2010


Myles Gainsford

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Hi All


I thought I would get things going here.


I have 3 properties in various areas around Durban


I have one in Assagay which has proven to be a good investment as I am always able to find a tenant on first visit to the property and I only have to pay in about 20 % of the shortfall so that is not too bad.The only problem with this is I paid R750 000 for it in 2006 and I haven't seen much increase in the value.It is in a nice part of assagay road and a good well known complex.

I have the other in Gillitts which I have to live in as I bought that as a fixer upper with the intention of renting it out once I am done. I paid         R1 060 000 for this in Nov 2007 and then the next year property went down so I will have to hang onto that one and hope that the renovations that I am doing to it will bring up its value.

My last one is in Westbrook which I bought off plan with the intention of servicing tenants from the New Airport.At present I feel that we aren't getting what I should be able to get for it, Do you think that the demand will go up once the Airport is built and therefore I can push up the rental on that property.

What is the best way for me to get the most out of my 3 investments if there is any advice or info out there it would be greatly appreciated as all 3 are on bonds and at this rate I will be paying them off till I am old and grey.I normally put extra money in to them when I have it.


Many thanks Myles

5:45 pm
March 11, 2010


justinclarke

Member

posts 4

 
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howzit Myles,

Looking at your property investments at the moment is certainly going to give you stress, but my first comment is hang in there! Some of my first residential properties were in Queensburgh and I lost faith and sold them after a period when prices did nothing. No sooner had I sold them but the prices started to move up. I lost out on 300% growth since then. Bite the bullet and dont lose faith. The curve will turn and you will live off those homes later in your life.

Second point, cheaper properties provide more cash flow, ie yield, but the capital growth is much flatter tending to move over time with inflation. Luxury property provides little yield but can have wild price fluctuations.

You are investing in the middle. If you want to sleep better at night buy "CASH FLOW".

Read one of Dolf De Roos books, or Robert Kiosaki…..

cheers

JustinWink

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