happy Sunday what's up it's p the black pen I'm going to try to be brief uh if you hear any noise in the back go is busy playing around here so please don't mind him I posted something that is deemed somewhat controversial earlier this week on my social media more specifically my Instagram stories and I said I prefer renting over buying and many people were like in my DMs please elaborate explain it's very simple for me U the way my lifestyle is set up I do not like the idea of being linked or tied down to one place for 20 years or 30 years that is my number one reason because if I'd have to do that moving around buying I'd have to constantly buy a house sell a house buy a house seller house and I don't like that I prefer the flexibility one of the things I did is I came up with a list of like seven key expenses that people have to think about when they have to buy a house things that people may not know one of them is the transfer duties or the transfer costs in South Africa if your property is worth less than I think it's about 1.1 million you don't have to worry about transport duties um and then there's Bond registration costs as well Luna come sit here come sit here cuz I can see you getting excited getting excited that I'm talking talking so you feel like you need to talk as well so the trans duties becomes one of the the major costs that people have to worry about another one is the registration of the bond which is very very important um many many financial institutions don't offer full Bond loans anymore Home Loans so many people kind of have to save 20% if you can afford more then that's dope by 20% of a million is 200,000 that you kind of have to have upfront to put down so that becomes of cost um another big cost is repairs and maintenance if you're renting any issue that you have in your property gets sent to the landlord the landlord has to deal with that stuff it goes on their bill it's it's not on you anytime your landlord is asking you to fix things at your cost you must get an invoice you must send that to your landlord and you must make sure that it's deducted from your rent um some of the maintenance as well Falls onto the landlord and it's not linked to the tenant themselves uh because at the end of the day it's not your property uh you have the right of use and you're paying for the right of use but the maintenance of the property the repairs any Renovations are not yours that falls on the landlord another important one is the utilities um utilities is your look this one's tricky because normally landlords pass these ones on to the tenant but there are certain costs that cannot be passed down to the tenant so you might pay for your electricity usage for your water usage but the right for that usage which goes onto like the bill is not yours that falls onto the landlord and they have to pay for that um levies is one of the biggest reasons why so many property investors in South Africa are not investing in property anymore um back in the day property in South Africa used to be priced very very well many people who bought properties for 200,000 150,000 back in the mid99s some of those properties today are worth a million 2 million because of what called inflation for some people it's the increase of homes because people think properties go up in value into perpetuity um and and some people argue that it's also because of some of Suburbia um was undervalued during aart dat so that white people could buy properties and then when black people started getting into some of these white neighborhoods they increased the cost or the value of these properties trying and keep people out and what that did is it ended up increasing the value of all the properties but levies man if I could explain what levies are just very briefly so levies are the cost when you live in a complex or in a state that cover some of the perks let's call them perks or cost of the complex or the estate your security um the maybe Manning of the gates Etc the gardening services that are around um maybe there's access to a clubhouse to a swimming pool to a gym um sometimes there's special levies that are put on cuz maybe some people didn't pay for electricity or maybe they've renovated something or they've added solar panels whatever the case may be there's levies you may find that levies especially in a place like Johannesburg could be anything from 1,000 Rand a month to 3,000 Rand a month to 5,000 Rand a month those are just levies those levies you're not allowed to pass on to the tenant the tenant is not meant to pay for the levies the levies are for the landlord the owner the tenant is meant to pay for the unit yes they get to enjoy these uh these nice perks but to be honest the levies are the responsibility of the landlord if you own a home especially a standalone security becomes a cost um if you're rich of course you can have your little security card with a little card house outside but for most people it's their alarm system it's the fencing we could maybe even add something like dogs into the cost of security to make sure that your dogs are fed they immunized they go to the veter regularly and that becomes a cost of security um and then home insurance if you own a property you have to pay home insurance every month in an Ideal World the owners would actually pass all these costs onto a tenant but that's not how it works in the real in the real world in the real world you may find a property that cost a million Rand um within a complex the levies maybe might be 2,500 Rand a month the bond might be 10 to 13,000 Rand a month and then you have to pay home insurance you have to pay your rates um I've already mentioned levies the tenant of a million Rand property might be paying something like 9,000 10,000 Rand a month to be a tenant there but you as the owner probably have to pay something like 15 to even 20,000 Rand a month for 20 years if it so happens that you're on a variable flexible interest rate you may find that the interest rate will fluctuate and during bad years or bad months you end up paying more for your bond than you would have whereas the tenant um has a fixed rent normally for 12 months and then they increase it it as an escalation close every year but the number one reason why I prefer renting is because of the flexibility I can live in a place for 3 years when I'm tired I move uh if I want to move to another Province if I I don't have to worry about selling I don't have to Etc what I do believe in by the way is the idea of buying property for income purposes but unfortunately property in South Africa is not as undervalued as it used to be so finding good property deals is tricky they used to be my roof. so. Za I'm not sure if it's still available where the banks would put all their repossessed properties on so that you can then buy them hopefully at a steal um there's Sheriff HQ which is another platform as well where people go and look for properties uh that are on auction then there's auction uh websites there's auction houses or core um people go to newspapers and they look for properties that have been repossessed and if you're lucky maybe if you walk around uh certain areas you may find properties that are undervalued if you have the vision or if you read the newspapers or if you are aware that there's going to be development and schools and a train and malls built in a certain place you may have an idea that certain spaces are going to go up in value so you may invest early but that now becomes the whole property game Etc but I just wanted to make this video to speak about that the reason why I prefer renting as a as a person that lives in the home as your primary resident I prefer renting than owning but in terms of in rental income in terms of what's known as passive income which it actually isn't owning a property is really really hard work um we have certain properties in the family that we look after I've helped manage properties on behalf of other people we are SP no and the cost are very very can get very very high there's cost of State agents there's months when you won't have a tent and all these other things so um you can buy property for rental income I would encourage that if you've done the numbers and they make sense you can buy a property if you're planning to use it as a form of a bank to make sure that you access the equity at any given time if you've done the math and you've done the research and you're fully aware that the property should probably go up in value over time and you want to take advantage of the increase in the property value then by all means you can also get involved in in buying property for that if you flip properties if you buy properties to fix them up and then to sell them at a profit definitely you can also get into that but for your primary residents for a person with a personality like myself a lifestyle like myself the ability to get up and go anytime I prefer renting and I just wanted to explain that that's the reason for me I hope that in the main comments many other people are going to share some of their views on why they believe that buying is better than renting why some people believe renting is better for their own opinions maybe you can share some of your experiences as well um there's a great uh episode of Diary of a CEO that came out last week I don't remember the guest's name but Steven Bart sat with this gentleman and he was explaining why renting makes sense for him as well and just like myself he's also got investments in property and you can have investments in real property or or you can invest in unit trusts that are invested in property you can get what's called rates um which is an investment tool for property and so many other things um but for primary residents some of us prefer renting and it's interesting to have a conversation many people do not do the maths you know people have just got this sentimental symbolic need to own a home it's my home I get to do what I want I get to and if that's your reason that's cool if you have some psychological philosophical symbolic reason why you want to own a property it's something that you've always wanted you and your wife feel that it's best you and your husband feel that it's best by all means you want your children to have a home base that is layers by all means but if you're different like some of us you like the flexibility you like moving around Etc then please consider renting as an option but I'm looking forward just because I made this video to the engagement in the comments cuz that's where the juice is actually going to be and I hope that you can have some of these conversations add amounts add calculations if I missed out on some of the costs of buying please add them if I missed out on some of the negative aspects of renting please add them I mean with renting you don't own the property but you enjoy it the same way that you can visit a hotel you don't own it but you enjoy it the same way you go to a a restaurant you know you go to a restaurant to enjoy the meal that is prepared for you and you pay for that versus eating at home but you can always eat at home if that's your preference as well I hope you have a great and play Sunday I'm probably going to make another video later on because I want to make a few more videos about the money game um it's one of the requests that a lot of my paying members have asked for and I guess I'll take this moment to say thank you very much to all my paying members I've currently got 155 paying members and I'm going to be pushing for more and more people to become paying members on my channel and I want to try and ensure that I create content just for the paying members I want to try and run uh create posts just for paying members and make sure that my paying members can also get some kind of benefit from the content that I make um I've got merch by the way you guys are going to see t-shirts I made soon I'm hoping that I can send some of these t-shirts to some of my paying members and anywhere where I can get some kind of benefits and perks I want to share them with my paying members and I actually want to create a channel that focuses more on paying members giving money driving some of the conversations and the content that I make versus getting brand businesses anyone who wants to film a podcast with me to expose to Market to create awareness to tell the journey to tell the story of the Journey of their business please feel free to hit me up on my um hit me up on my social media platforms um anyone who wants to sponsor this channel uh if you're not going to censor my content please feel free to hit me up but more than anything to my paying members I love you guys very much you guys have asked for more political content you guys have asked for more business content you guys have asked for more personal finance content especially after the video I did on trip people were like we need more of these videos that teach us about business small business about making money about how to move money around about tax savings you know people want to know where to invest their money Etc and I think I've got a lot to share so I'm going to be making more of those videos because of what the paying members have asked for and for everyone who voted I got 2,000 votes on the recent poll I put on this channel where I was asking people how much would you like to pay per month as a paying member I'd like to thank all of you for voting even if you said I don't want to pay anything for the fact that you contributed in that poll means that you guys are giving me very important uh information and Insel that I can use to build my channel to become better go and spend time with your loved ones spend time with the kiddos um I love you guys I appreciate you guys and let's keep using this channel to become something really really special and if I can let me see if I can use this channel to touch your lives not just in education but maybe traveling around the country country to your community to your neighborhood and making a real difference that's the reason why I do the things that I do so yeah sco say bye bye cheers guys by