Property Magicians Podcast

Episode 32: How to make money in real estate without owning or selling property

In episode 32, we talk to Zakhele Myeza about his journey in real estate.

Zakhele was introduced to real estate at a young age by his mom who was a real estate agent.

He fell in love with the way sellers described their properties and started understanding what people were looking for in property.

His real estate journey is interesting because he started his property journey with a 4 bedroom rental property where he was paying rent of R6500 (US$340) a month.

He built a great relationship with his landlord who then gave him permission to sublet the property.

He started adding value to the property by making it beautiful and ended up renting out the 3 extra bedrooms for R5,500 per room per month.

He saved on rent and was making a profit of R10, 500 (US$556) per month by subletting the property.

He then rented another 3 bedroom property for R7, 000 per month in the same building, renovated it and rented out each bedroom in the apartment for R5, 500 per month.

He now had an extra R 9,500 (US$503) per month.

He has since branched into house ownership and owns an 8 sleeper multicultural student accommodation and is involved in a 16 sleeper house hack.

In the podcast he shares how he's pivoted the student accommodation during this pandemic to continue generating positive cashflow.

Zakhele also teaches and coaches people to house hack and invest in property.

You really don't want to miss today's podcast episode.

Click play below and let us know your thoughts in the comments section below. 

Episode 31: Emboldened at 27 to start a property portfolio

In today's episode we talk to Zamantungwa Khumalo, a full time property investor who started building her property portfolio at the age of 27, from a hospital bed (yep!).

Zamantungwa started tracking various neighborhood trends in Johannesburg at a young age and was always interested in owning real estate, but took a while to get into the game, because she was scared of taking on that much debt.

She set aside her real estate goals, until one day, when she found herself in hospital and decided to use that time to run the numbers, find out how much she qualified for and look at how she could afford to buy 2 houses at a time for her 27th birthday.

Even though she qualified for less than a million rand, she was able to purchase 2 properties in Johannesburg, South Africa.

After that she decided to keep gifting herself with properties for her birthday.

She has grown her portfolio by focusing on maximizing the money she qualified for and buying two properties at a time, eventually she was able to grow her portfolio to focus on property full time.

Click play and listen to Zamantungwa's story and let us know your thoughts in the comments section below.

Episode 30: A sit down with the host of the Property Magicians Podcast to discuss personal finance and property

In episode 30, we decided to do something different - we wanted to talk about the personal finance and property and why the Property Magicians Podcast exists and is relevant. 

Our guest for this episode is Vangile Makwakwa, the host of the podcast.

Vangile starts by talking about financial trauma and how it affects our finances and how our relationship with our bank accounts impact our property investment journey.

We then delve deep into the purpose of the podcadt and why it came to be and why representation matters and how that impacted her property journey. 

We hope you enjoy this week's podcast. Click play and let us know your thoughts. 

Episode 29: Tax planning: How to build a property empire that lasts for 400 years

Who knew tax could be soo exciting and lead to a complete mindset shift?

Get a pen and paper and prepare to be blown away by today's podcast.

In today's podcast we talk to Obakeng Gaitate, a chartered accountant who focuses on property tax.

Obakeng has written 12 books and as he says: he has paid for his school fees in the property market by making and losing millions in property.

He made his first million in property at the age of 21 and now helps his clients plan their property estate for the next 400 years, so they leave behind a legacy for their children.

In this episode, Obakeng explains generational wealth and how you can start to build it, and why you need an accountant who understands property on your team.

He also answers some key questions like:

- What are some key tax laws and taxes that newbie property investors should know?

- What legal tax hacks that make property a lucrative investment?

- How can we avoid paying tax on rental property?

- What are the tax benefits of home ownership?

- When do you pay capital gains tax, how is it calculated and how can you avoid paying it?

Click play and let us know your thoughts on today's episode in the comments section.

Episode 28: How to build a portfolio of 105 properties in 13 years

In this week's episode we interview Nqabenhle Manana who has managed to build a property portfolio of 105 properties in 13 years. 

Nqabenhle bought his first property for his grandmother and his second house his wife and kids.

He looked at how hard the executives at his company were working and how much they earned and started having doubts about the salary route; luckily a friend told him about Robert Kiyosaki's book, "Rich Dad, Poor Dad."

One week after reading the book, he bought his first property, for R80, 000 (US$4,970) in Windsor East, Johannesburg, South Africa. 

Three months later, he had his first tenant and was renting out the property for R2,500 (US$155) a month. 

A few months later, he bought another house in the same complex and he was hooked - he saw how property could replace his income. 

A few months later, a friend told him about investing in the CBD and he changed his investment strategy from buying houses to buying apartments in the CBD. 

To grow his portfolio to 105 properties, he focused on:

- Cashflow

- Properties with a 20% return on investment 

- Plowing back all his income into his property business 

Click play to learn how Nqabenhle was able to do so much in 13 years. 

Let us know your thoughts and insight on today's episode. 

Episode 27: Buying property for equity appreciation

In episode 27, we go down a different path and talk to Arthur Peters a Business Economics lecturer at Nelson Mandela University, who buys property for equity appreciation instead of cashflow.

Arthur didn't start out as an academic - he dropped out of school because he wanted to know more about making wealth, and purchased his property in 1990 at the age of 22 in Mitchell's Plain, Western Cape, South Africa.

He still owns his first property, which he purchased for ZARR60, 000 (US$3,730) and now rents it out for R4000 (US$249) a month, which means that this property has paid itself back several times.

After buying the first property, Arthur decided to go traveling and also go back to school.

He moved back to South Africa in 2003; purchased his second property for R320, 000 (US$19,900) and now rents that out for R1,500 (US$94) per month to his mother.

He bought his third property in 2006 for ZAR1 million (US$62,170) in Gordon's Bay, Western Cape, which he started off renting out as a guest house, but now rents out to long term tenants.

Arthur is now focused on buying his fourth property.

Click play to listen to his story and let us know your thoughts on today's episode.

Episode 26: How to go from 0 to 8 properties in 6 years

In episode 26, we interview Khanya Ngonyama on how he was able to go from 0 to 8 properties in 6 years. 

Khanya is a water and environmental engineer and he runs a small water company.

A few years ago, he started thinking about financial freedom and realized that having one salary is not sustainable, that's when he started looking into various investment vehicles and eventually decided on property investing. 

He joined P3 Investments and was adviced to start building a real estate portfolio. 

He did his research and decided to build his portfolio by buying properties below R600, 000 (US$40,000) and based on location. 

He decided to target Kempton Park, Boksburg and Pretoria North in Gauteng, South Africa, because thats where a lot of companies are, so there are employees who could be tenants. 

His first property was a single one bedroom property in Pretoria. 

He bought his second property off plan, using R30, 000 (US$2,000) in savings to pay down the deposit. 

After that, he decided to buy 1 property a year and focused his attention on building his credit, learning how to buy property on auction and building relationships with agents in order to make his goal of one property a year a reality. 

Click play and hear how Khanya has been growing his property portfolio.

Episode 25: From domestic worker to owning a building that cashflows at R409, 000 per month

 

In episode 25, we talk to Ma Josephine, who was referred to us by TUHF because of her remarkable story of tenacity and just all round awesomeness.

Ma Josephine is a domestic worker, who came to Johannesburg from the North West province of South Africa.

She came to Joburg, for the same reason most people do - looking for a better life.

Along the way she started to see how so many young kids would come to the city to study and would struggle to find accommodation.

This sparked her interest in student accommodation and how to solve the housing shortage in this market.

Through a series of events she was introduced to the owners of an inner city building, Harmony House, and later given the opportunity to buy the building in 2000.

She had no money to buy the building and she couldn't get a bank loan but she remembered that 2 years ago (in 1998) she had been told about TUHF.

She went to TUHF and was a granted a loan, but couldn't take up residency in the property for 8 years, because the building had squatters living in it.

She finally took full occupancy of the building in February 2009, got more funding from TUHF and renovated the building to accommodate 124 tertiary students.

The building got instant accreditation from NSFAS and was one of the first student accommodations in Doornfontein.

Today Ma Josephine's building cashflows at R409, 000 per month and is still being extended to fit an extra 60 units.

Hers is a story that makes all of us believe in our dreams and reminds us of our own power.

Click play and allow yourself to be inspired and to keep dreaming bigger.

Episode 24: The ABCs of commercial real estate

In episode 24, we talk to Khali Masooane, a commercial broker, about the commercial real estate market. 

Most people think real estate and think about the residential market and how to service that market. 

Some of us also think about AirBnB or student accommodation; but very few of us think about commercial property and the opportunities in that market.

Khali told us that the real estate market is a trillion rand market and the residential property niche is a small part of that market. 

The commercial real estate market is large and expands beyond the retail sector and includes manufacturing, industrial buildings and even hospitals. 

Some of these sectors don't have a lot of competitors and are underserved, which opens up a lot of opportunities for interested investors. 

The other interesting thing about the commercial real estate market, is that properties can take a long time to rent out but lease contracts can be as long as 10 years, which guarantees cashflow for 10 years! 

And some tenants in the commercial property space will often pay their rent a year in advance, unlike in the residential market where tenants pay monthly. 

This podcast episode will definitely open your eyes to all the many opportunities in the real estate market. 

We can't wait to hear your feedback after you listen. 

Episode 23: Mistakes & lessons learned from buying 5 properties in 4 years

In episode 23, we interview Nicolette Mashile, also known as the Financial Bunny on YouTube and Instagram.

This is the perfect podcast episode for newbie investors because Nicolette shares all the lessons she learnt on her real estate journey and some of them will have you open mouthed:

- Buying her first apartment cash and then signing an offer to purchase on a second home and ending up paying R125, 000 (US$8,555) to get out of the agreement

- Buying a dream house in a dream location, only to find out that it was overpriced and has a lot of structural issues

- Dealing with nightmare tenants

- Starting a real estate investment company from a social media video

In this episode you will learn:

- What to look for when buying a house and how to determine the price of a property

- What questions to ask when you start buying a house

- Why you should work with home inspectors and structural engineers when buying property

This episode is a mix of personal finance advice and property investing advice.

You're in for an amazing treat. Click play and let us know your insights and feedback in the comments section below.