Poll

Deposit on property or ETF's?

Deposit on Property!
0 (0%)
New RMB TOP 40 / RMB MidCap
2 (28.6%)
Put it in current ETFs!
5 (71.4%)

Total Members Voted: 7

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Author Topic: Deposit on property or ETF's?  (Read 11171 times)

NakedPeanut

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Deposit on property or ETF's?
« on: July 11, 2014, 02:42:47 pm »
Playing with the idea of buying a ~R600k property for rental purposes (either in Eco Park Centurion or Mooikloof Ridge Pretoria East). Deposit will be ~R100k. My original idea for this money was a deposit on my own place (still staying at home, 26). But I'm thinking of buying a place to rent out, until I do move into it ~2 years.

My second option i'm looking at is just putting this into FNB's ShareSaver which buys RMB Top40 and RMB MidCap ETF's. Mainly looking at this because of its low fees.

I currently have a decent amount invested in ETF's already: STX INDI, STX TOP40,STX  DIVI,STX FINI and Proptrax via ETFSA.
Basically double the deposit amount + some more divided equally between the 5.
I could also put the money in one or some of these, but I like the idea of FNB's ShareSaver as it'll be easier for me get the funds out than etfsa's countless forms..

I'm weighing up my options here, and welcome any insights or advise!  :TU:

Oh, and no outstanding loans or debt beside wasting money on PC and MTB parts  :whistle:
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Orca

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Re: Deposit on property or ETF's?
« Reply #1 on: July 11, 2014, 04:19:39 pm »
Read this then make up your mind. http://investorchallenge.co.za/blog/
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NakedPeanut

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Re: Deposit on property or ETF's?
« Reply #2 on: July 11, 2014, 04:48:19 pm »
I actually did, and my months of searching for a property has now been halted, with me now looking at the other options.

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yozzi

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Re: Deposit on property or ETF's?
« Reply #3 on: July 11, 2014, 05:33:04 pm »
I was in the property game until the end of 2013 when a spate of bad tenants convinced me to get my equity out of three properties and start making some decent money without too much risk and no tenant hassles, maintenance issues, etc!

I really think that people believe prop investment is an easy way to get rich but I tell anyone who's thinking of going into the buy to let scenario that you must really do your homework as it's no bed of roses!

Invested in the Stx Indi, A Gray Orbis Global Equity Feeder Fund, Coronation Ind Fund, etc and doing quite well so for me there's really no arguement!   
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NakedPeanut

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Re: Deposit on property or ETF's?
« Reply #4 on: July 11, 2014, 05:37:38 pm »
Thanks Yozzi,

If you don't mind me asking, did you manage the units and tenants, or let a separate company manage them and the finding of tenants etc?
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Patrick

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Re: Deposit on property or ETF's?
« Reply #5 on: July 12, 2014, 07:47:22 am »
Between you and me, and the rest of the internet, I'm never buying a property again!

I may however buy property stocks at some point, but I don't ever feel like being trapped into a single location and a lie yields investment.

I read somewhere the the American dream of owning a house was thought up by factory owners in the states to keep workers from being able to move to areas with better paying jobs...
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yozzi

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Re: Deposit on property or ETF's?
« Reply #6 on: July 12, 2014, 05:33:22 pm »
Quote from: NakedPeanut on July 11, 2014, 05:37:38 pm
Thanks Yozzi,

If you don't mind me asking, did you manage the units and tenants, or let a separate company manage them and the finding of tenants etc?

Basically, I managed the units and tenants myself but I used rental agents to source the tenants and paid them a once off finders fee for doing so. I had a good run of tenants for quite a few years so maybe my luck ran out! But I think to go into the buy to let situation is really a long term investment of many years and from what I'm seeing the prop market is going to take years to get back to where it was 8-10 years ago when you made fairly decent returns. 
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AVM

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Re: Deposit on property or ETF's?
« Reply #7 on: July 14, 2014, 11:37:46 am »
Property is a headache :wall:
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NakedPeanut

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Re: Deposit on property or ETF's?
« Reply #8 on: July 15, 2014, 10:13:20 am »
Looks pretty unanimous to me then. Thanks!

I currently have property as part of my portfolio in the form of the proptrax ETF, but it's been a bit of slow performer in comparison to the majority of my other satrix funds.

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