Is it a good idea to bond an investment property?

  • 📰 Moneyweb
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 77%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

[READER QUESTION] 'Or would I be better off investing R8 000 per month into a fixed deposit earning the interest over 20 years?' MariusFenwick of thisiswealthup replies... PersonalFinance Property

I come from a family that has always believed that property is a good investment.

Marius Fenwick Profile Mail The only way that an investment property makes sense is to bond it. Why do I say this? A mistake that’s often made is to take the sales value of a property and calculate the return by merely comparing that to the purchase price. All other costs are ignored. Once the peripheral costs like bond interest, maintenance, rates and taxes, levies, insurance and so on are taken into consideration, residential property rarely provides a return ahead of inflation.

The opposite principle applies to your primary residence where a cash purchase is preferred due to the cost of financing over an extended period. When bonded over a 25-year period your repayment increases your actual cost of the property threefold.Investment income is fully taxable. This means that your total rental income will be considered taxable income.

It is important to note that Sars will only allow expenses to exceed income for a limited period of between three and five years, depending on your motivation of why expenses exceed income.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 5. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Siyavutha brings value of property investment to ordinary folkSiyavutha Property Stokvel was formed in 2021 and is aimed at addressing economic transformation by enabling ordinary members of the community to unite and invest in commercial real estate.
출처: SowetanLIVE - 🏆 13. / 63 더 많은 것을 읽으십시오 »

Market data — July 12 2022Market data including bonds and fuel prices
출처: BDliveSA - 🏆 12. / 63 더 많은 것을 읽으십시오 »

Market data — July 13 2022Market data including bonds and fuel prices
출처: BDliveSA - 🏆 12. / 63 더 많은 것을 읽으십시오 »