Lethabong, Gauteng · Member since 2017 · 4 posts · 2 votes
Hi Everyone
I am a 27 year old Chartered Accountant (read CPA for Americans) starting out in real estate. Thanks so much for the e-books and tons of information available, it has been so helpful. My only question is, I live in Johannesburg, South Africa, and I have no idea if many of the principles apply to my location and whether there are other factors to consider? I have been looking on sites like MeetUp to find real estate investment clubs in JHB but they all seem like "gurus" trying to sell a get rich quick scheme. Are there any South Africans out there who can point me in the right direction?
I've put an offer in on my first investment property. But I've struggled with applying some of the lessons as is, like e.g. the 1% rule. Might be due to my market, I'm in Cape Town, to be honest I'm beginning to think that I should be following the Long Distance Investor approach and invest else where in SA...
Hopefully you're a bit further on by now and can pass on a bit of what you've learnt?
Yeah the 2% seemed to be downright impossible. What I have managed to find at a very high cash yield is where someone has bought a freestanding house and then added on 2 or 3 apartments. I recently found one that cost around 1.6m and will earn 26k per month.
Cape Town is a tough market I think though. Maybe try smaller towns in the region?
I'm very interested in other countries. The same numbers should apply... it's difficult to find a 2% property around here. When I find a 2% property listed on the market it's usually in a horrible neighborhood. I'd be skeptical of 2% properties but that doesn't mean they aren't out there.