I was recently approached by a client about whether or not I thought he should sell his rental property. Let’s take a look at the facts:
Bought in 2001: R210k (a further ±R70k spent on renovations).
Current value: ±R1.58m (he hopes)
Current rental: R6000 pm (it’s a 27 m2 1 roomed apartment in Stellenbosch)
Levies + rates: ±R1300pm
Net rental: R4700pm which equates to a yield of under 4% (3.6% before any tax has been paid on the rental). Continue reading There’s something insane about buying a R1.6m property that you can rent for less than R6000pm
ENT specialists will tell anyone who listens that the only thing that you should ever stick into your ear is your elbow (it’s impossible, just as it is impossible to lick your elbow). And yet a quick trip down the supermarket aisle or peak into just about any bathroom cabinet will show that there is a massive market for ear-buds! Doctors tell us not to use them and yet we still do. We do things that are bad for us, even when we know that they are bad for us.
This got me thinking about share trading – there seems to be no end to the courses and platforms on offer and while the research shows that people don’t make money from share-trading, we still believe that we know better and that we can beat the markets. Perhaps online share-trading platforms are the ear-buds of the financial markets?
I received another unsolicited email today from an operation called “savemoney.co.za” about a tax-free savings account.
It’s just Old Mutual in disguise and despite claiming to offer the “best tax-free savings account in South Africa” a little digging shows that this is VERY far from the truth.They are, in fact, ripping off poor, unsuspecting and ignorant people. Continue reading Talk about a wolf in sheep’s clothing
I recently watched someone using a leaf blower to clear their pavement. As I watched, it struck me what a pointless exercise it was and it crossed my mind that the leaf blower must be one of the most senseless machines yet invented. Continue reading It’s time to do the Mickey Blue (again)
A few years ago, during the National Budget Speech, government put a cap of R350k pa on retirement contributions. It appears that no one at treasury has given this much thought Continue reading It’s time that treasury stopped being short-sighted when it comes to the wealthy!
Am I the only one who dislikes Tax Free Savings Accounts (TFSA) and all the hype that goes with them?
Let’s take a step back before getting all excited about TFSA’s. They were introduced (by Government) to encourage non-savers to save and unfortunately, Continue reading The great Tax Free Savings Account con!
There is this strange phenomenon in SA called Regulation 28 that is applied to retirement funds. It stipulates that retirement fund members may not have more than 75% of their funds in equities and no more than 25% of the fund invested offshore Continue reading A case for higher offshore weighting within a living annuity?
I remember reading this quote when I started in the financial services industry about 22 years ago and came across it again recently…it’s a timely reminder as we try to make the industry better for our clients.
I was not delivered into this world into defeat, nor does failure course in my veins. I am not a sheep waiting to be prodded by my shepherd. I am a lion and I refuse to talk, to walk, to sleep with the sheep.
The slaughterhouse of failure is not my destiny.
I will persist until I succeed!
From the ancient scroll marked 111 in “The Greatest Salesman in the World” by Og Mandino, ironically!
Dear Old Mutual
If you are going to send me spam emails about your products then I have no issue reviewing and rating them! Please stop sending me unsolicited emails about your products! I don’t rate them and will not use or recommend them.
The Financial Coach
Continue reading Old Mutual Invest Flexible Plan – stay far away!
There are many with strong opinions about the merits of a share portfolio versus a unit trust portfolio. Here’s another one (strong opinion) in favour of a unit trust portfolio.
Continue reading UT or share portfolio