You also need to take into account that to be on 0 profit for tax purposes you will most likely be paying money in each month as the allowable deductions for tax are unlikely to cover all the costs associated with the ownership. What you need to do is check the purchase price of the property, find out all the related costs and associated deductions allowable by SARS, fine tune your deposit for maximum effectiveness so that your profit is generally 0 after income vs allowable deductions and work from there. You also need to take into account that from time to time you have to do maintenance which would come to thousands each time most likely which means it's very easy to be out of pocket. It can be a bit complicated as if you live and work in SA then this R20k would be lumped on top of your current salary so any "profit" made (in my case a few hundred each month) would go straight to SARS anyway. Because I don't live in SA and this is my only income there the profit comes to about R20k per year as per SARS so I don't have to pay tax. On top of this I have to pay levies and all other associated costs for complex living coming to about R1500 per month (this is very low compared to most other complexes), COJ rates and taxes at about R450 per month, FNB monthly fees of R220.Īll in all it has always been a net positive position for me renting out my property with me getting a few hundred bucks profit each month. Purchase price was R619 000 (put down R75k deposit) and my monthly repayment now after about 5-6 years is about R4600 per month.
I currently own a 2 bed 2 bath unit that rents for R7500 per month. Ultimately you need to measure up all the incoming and outgoings of property ownership.
0 kommentar(er)
