Beware of those who downgrade the value of investing in property

Although it is by no means always the case, there is a small grain of truth in the old taunt “those who can’t do, become financial consultants”. Recently, a long-term client of the Terblanche Thomas Group with a large portfolio of rented properties reported that a financial adviser had assured him that if he sold his property portfolio, the adviser could guarantee a better return from the money invested in the traditional low-risk property market.

low risk property investments

But this sort of comment is often made without taking into account several factors, all of which actually radically alter the calculations. The first is that the return usually estimated by the adviser is based on the current value of the property, not on what the investor actually paid for it two, three, four or five years ago. The second factor often overlooked is that in most cases the investor is making his money on the bank loan  (his actual initial investment is often no more than 10 or 20% of the total cost of the property including maintenance).

The third factor that is often not taken into account is that if the investor were to sell his property portfolio, he would often be liable for a substantial Capital Gains Tax on the profit of any secondary (investment) property. Even on his own primary home, if the property’s value exceeds R1.5-million, the Capital Gains Tax could be hurtful.

Such arguments by financial “experts” are also often backed up by the very valid point that rates and taxes are increasing rapidly. It has to be admitted that these have become a type of wealth tax. They continue to rise because living conditions in many of the poorer and disadvantaged areas really do need improvement and upgrading. However, these rises are often more than compensated for by rising rents today.

In certain areas less than half of the ever-hopeful bond applicants are successful in getting finance for their homes. This means that, contrary to the declared government policy, there is a growing need for rented properties. In round terms it also means that residential units today very seldom give less than a 5% return and often the figure is closer to 10% – from day one. The buy-to-let market is, therefore, a very good place to be right now and this situation can only improve if and when interest rates rise, which would make it even more difficult to get home loans.

Plan your office move in 10 Steps

office moving services

Moving your office may seem like a daunting task. You’ll have to do it while continuing your operations. Here are steps to guide you through this big move and how to deal with your office removal company.

1: Clarify Your Reasons

Understanding the reasons for your move will serve as a guide for finding your new space. This will also help your team and your customers through your move. Your reasons may be expansion, downsizing, cost factors, or location factors.

2: List everything you need

Start by doing a checklist. This can help you organize your move without disturbing your business operations.

3: Mark your calendar

Know what needs to be done and when. Mark target dates so you know your timeline.

4: Budget

Note everything you need to spend on, like property and moving costs. This will save you from going over your budget.

5: Find an Agent

A real estate agent can help find the perfect place for your business. Negotiate agreeable lease terms for your space.

6: Hire help

Contact professional movers. Go over your plans with them. Discuss your budget, needs, items you’re bringing, items for disposal or replacement.

7: Design your new office

A properly designed space leads to a hassle-free transition. You’ll be able to improve your team’s productivity and their morale.

8: Moving the Tech Stuff

Plan this efficiently so there are minimal disruptions to operations. Ideally, these should be moved first.

9: Settle the Terms

Finalize your contract with your real estate agent. Before signing anything, make sure everything you agreed on are clearly written on your lease.

10: Repair

Don’t leave your space without having it repaired. You can avoid potential disputes in rental deposits if you hand it over in good condition.

Follow these steps for a stress-free office move.

Related reading:

Learn how to organize your new office

Find out why you need to relocate your business

Office Relocation – Taking an Active Approach to your office move

The importance of being pro-active when maintaining your home

Leaky faucets and toilets aren’t really a priority for most of us. It’s easy to dismiss a minor plumbing problem or two when you have other things on your plate. You could be spending your cash or time on something else. While a few leaks are not so much of an inconvenience, over time, these are going to be a bigger problem. These minor problems, if left unattended to, will cost you more and will become more complicated to fix.

Here’re some more reasons why you should be calling a emergency plumber roodepoort as soon as possible.

The Costs of Delayed Maintenance

emergency plumber roodepoortDid you know that a little leak can add up to 10,000 gallons of water lost per year? This is according to the EPA Water Sense program. A few drops from a faulty faucet or supply line may not seem much, but delayed maintenance can cost you in the long run. That 10,000 gallons of water is going to your water bill. And this isn’t the only problem.

Moisture from leaks that fall outside sinks or toilets may lead to mold and mildew. These pose a threat to your home and your overall health. Mold and mildew can damage any woodwork, causing them to rot. So in addition to your plumbing costs, you’ll also be shouldering the expense of replacing your walls, floors, and ceilings.

You’re also putting your health at risk. Aside from respiratory issues from the mold and mildew, harmful diseases can also be caused by the biofilm in your pipes. And don’t ignore the plumbing problems in your toilet such as backed up sewer lines or leaky toilet seals. You may be exposing yourself to raw sewage in your very home.

You know what to do!

With all these problems lurking behind a simple leak, you should know what your next steps should be. Go ahead and take your tools out for a DIY, or get help from a plumber. Repairing these minor problems will cost you time and money as well, but getting them fixed now saves you from the higher costs of their complications.

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