 Good evening and welcome to episode 320 of the private property podcast. I'm your host, if you're joining us for the first time, welcome to the only daily property podcast in the country helping you make better property decisions. Make sure that you go to our Facebook or our YouTube page to catch up on all the great content that you have already missed out on. It doesn't matter where you are on your property journey, whether you're renting, you're looking to buy, to sell or to build, we certainly covered it all on the show. And to all our regular viewers on Facebook, on YouTube, add on Instagram, welcome to it. You know how we do every single weekday. You and I are in conversation at 6pm. We're always having a conversation rather with a property expert who helps us make better property decisions. And we certainly love learning from each other. One of the great things that a lot of you know from gang members and of course too many of you at home always show us some love is that we love the family that we're creating, community that we're creating and certainly love learning from each other and talking about learning from each other and the community that we're building. You also know that we are running our competition on our Facebook page as we count down to one million followers on our Facebook page. So one million likes on Facebook and that is the great countdown that we are doing and running a great competition where you send a chance of walking away with five hundred grand cash right here on the private property cost of my son. And all you have to do to send a chance of walking away with that five hundred grand in cash is make sure you engage with our page as much as possible. Certainly give us a review on our Facebook page, tag your friends on some of our posts, share some of their lives that we have, whether it's the show, the other shows and of course continue showing us some love, whether you're sending us those green hearts down here below. The more you interact and engage with us, the higher your odds of winning. And of course if you want to make sure that you win the money, you also need to be tuned in every single evening at seven p.m. We announced the winner halfway through the show and the winner needs to message us down here below in order to claim their price. If you don't message us, unfortunately you forfeit the price and it rolls over into the money bag for the following day. Now yesterday's five hundred grand rolled over and this evening we're going to have one thousand rounds in the money bag. I do hope whoever gets chosen halfway through the show is watching and they're going to be claiming their price. But that's some of the great ways that you can engage with us and of course standard challenge of walking away with some cash. This evening we're having a conversation that I'm very excited about. But before we get to that conversation, you know that the other great shows that you can tune into across private properties, social media pages are of course the first time home buys show that you can catch every single Wednesdays at 8 p.m. where Esser Classin is always in conversation with first time home owners who have gone up to grow their property portfolios from string to string. And as it is Tuesday, you can catch a warden in Pharma, later on this evening at 8 p.m. on the farming podcast and she comes to your screens on Thursdays as well at the same time. And every Mondays and Fridays you can look forward to the home shopper's show with Chad where he's always taking us through incredible homes that you can find on www.privateproperty.co.za. But those are the great shows that you can tune into every single evening at 8 p.m. So do make sure that you continue sharing the lives, whether it's this one or of course the other shows and of course you know engage in with us so that you can send a chance for that cash prize. But going on to this evening's conversation, I'm very excited about this one and I'm excited about it because this is one of those things that very easily helps you see if you are dealing with the property professional who knows their things. If you're dealing with the property investor who knows their stuff because it really is about the ransom sense and this is another thing that we thumbs up. We use data to come up with the amounts that we tend to charge and that's exactly what we're going to be looking at this evening. We're looking at how to price your property right, whether you have a rental property or just bought a rental property and you're still not quite sure how you should be going about pricing for your rental property and of course the big one downscaling or upgrading or want a different kind of asset type. We've seen a lot of people selling and the reality of selling your property is more often than not you're going to be a first time seller, you're going to probably buy more times than you sell. So you really never really get an opportunity to fine tune your selling skills unless of course you're in the buying to flip business but a lot of us tend to not be in that space. So understanding how you price your property right is so crucial and help us get a better sense of what we should do and what we should also avoid doing when we want to adequately pass our property and join this evening by Unundo Miso the CEO at Idwala Property Group. Thank you so much for joining us this evening on the show. Good evening Zama, I'm very happy to be here and good evening to all our viewers. It's always so great having you on the show, you know, Unundo Miso. I think one of the great things is we're able, one of the things about our conversation this evening is a lot of sellers and I've even seen this with different people I've interacted with, different viewers at home who are looking to sell their property. Some of them are in financial distress and others just want to be able to upgrade. They're thinking look I can now afford a data house and I want to be able to upgrade but of course they don't know how to adequately price for it and before we look at the selling side actually I wanted to spend a little bit of time on the rental side because we've also seen that due to the historical interest rates we're seeing people bought investment properties and some didn't first do the research of pricing their intel property. They kind of took advantage of being able to buy and we now need to make a decision around what to charge and how to charge it. When we look at our investment properties so when you're pricing for rental what are some of the key things that we need to pay in mind before we even say this is the advertising amount and you place your ad on privateproperty.cd. Alright, firstly it's very important to understand that the rental income of your property must be comparable to all the other properties in the area. You cannot say oh because my bond repayment is 10,000 rand now I must ask for a rental of 10,000 rand you know that's a million rand property so generally as a rule of thumb if your bond is 10,000 rand and your rental income is around 7,000 which is 70% of your repayment you actually have a good investment so it's very important to understand that you don't look at your bond repayment and then price it according to your bond repayment but if you can cover 70% of that bond repayment you're well on your way you've actually done a good investment so it's very important to know the rental market in your area and price according to the market and not according to your expenses so that you can be a fair owner that was able to compare competitively with the other properties in your area and that's such an important thing to note and I know a lot of property coaches for example that we've had and property basis that we've had in the show typically say that you want to be at the very least making sure that your rental property pays for itself in its entirety from day one ideally it should be making a profit from day one even if it's making 50 rands and the reality of those kinds of deals for I'll say ordinary people who are probably going to buy for example in a sectional title community it simply just does not happen for the most part some people are able to get those great deals and get a steal and be able to somehow perhaps buy a two bed auction exactly but for the most part if you're buying it from let's say a private property and it's been listed even the seller has listed it at a certain amount and they've also done their research that of course we're going to get to in a bit so it becomes so important then that when you are a landlord or you're setting that price that you understand all the factors that you need to consider yes and I mean when you even mentioned Levy's Nundum part of me I was having a conversation about Levy's and just how continuously escalating and it makes it that much harder to get the yield that you want because you would have projected X amount of yield and then Levy's keep increasing and so the really key thing when it comes to setting their rental price as Nundum says pointed out is not setting it based on your expenses and when you understand that before you even buy it actually helps you because then you're able to say when you are viewing actually this property I'm going to have to put in too much money and I don't want to put in that much money so when you understand that from the get go it helps quite significantly I want to find out from the viewers at home if you have a rental property are you topping it up in any way and of course I'm referring to a financed rental property are you topping it up at all or is the rental amount that you're charging servicing the whole expense of the property where you're able to pay for the bond and the Levy's and the rates and taxes how did you go about running your numbers for your rental especially during COVID where we've seen a lot of landlords have had to make adjustments to what they're asking for rent or certainly not have rental escalation so if you're a landlord out there you have a rental property do share with us if your rental amount covers all the associated expense of that property or you have to top up and if you top up what's the percentage that you top up with so that's quite a big one for setting the right price for rental right now it really is a renter's market there are certain areas where you previously were probably charging 15,000 rands for rental especially if you look at Jobbock North you're now able to get the same units for 9,000 rands so you really need to be careful when you set your rental prices as a landlord before we even get to the selling side and how you base the price that you know I see that we've got quite a bit of love from our viewers at home this evening who are sending us all the green hearts on our facebook page as they are watching us live we've got Solani Pilei we've got Uposha, Mayile and Nonin Kuta I see you Evans Cabello Nemaputti I also see hashtagging there the live cast and private property and Mike Gale that's the first time I'm seeing your name I'm certainly looking forward to seeing more of your name and another one whose name I'm seeing for the first time on our facebook page is Opulani that's also another first time on my side so do you continue showing us some love on our facebook page whether you're sending us the green hearts or of course if you own a rental property let us know if the rental that you're charging is able to cover all the expenses for the property or you have to top it up and if you top it up what's the percentage that you are topping up with I wanted to go for a quick break and see who the potential lucky winner and I want to say potential because I need to claim their prize for our 1 million followers on our facebook page is going to be I hope you're watching so you can claim your prize we want to give this thousand rounds away and let's see who tonight's winner possibly is and that lucky winner is you are this evening's winner you have until the end of the show to claim your prize so do make sure that you drop us a message down here below and the 1000 round in cash is all yours and of course if you want to be just like him all you have to do is continue engaging with our page on facebook where you can share the lives you can tag your friends leave us with a great review and of course certainly continue showing us some love during the live podcast and if your name is called up on the show make sure you text us before the end of the live and that is how you get to claim that 500 rounds in cash in the event where the winner doesn't claim their prize the money rolls over into the money bag for the following day so certainly making the money bag bigger and by the time whoever gains their prize comes on board they are going to get quite a bit of money well our conversation this evening we are looking at how to price your property right with Anundu Meesam as a CEO at Iqbala Prop and before that I asked you at home if you have a rental property how do you go about setting the price for it does the rental cover the whole property or do you have to top up and if you do top up what is the percentage that you top up with and going to some of the comments on our Facebook page we've got Ubonso and Zinye who is one of our top fans saying my mother's property covers everything the house pays for itself and we still get to eat from it because of the back rooms in the yard absolutely absolutely absolutely love this one because I think it really is as high as as an asset and that we are able to use it as an income generator where you could be living in Zinye and they are back rooms and able to rent after those back rooms and they don't just cover expenses but it also becomes an income that the family can use so it's a big game changer for those of us who either grab a gas or have properties a gas or have family who have property a gas and that if you are able to save up a bit of money and put really nice rooms especially as we are seeing more and more modernized back rooms in townships you know that you are able to have an income for your sounds and your family thank you so much for sharing there Ubonso about your mother's property and we've got Chanel for Chanel saying that we rent and it goes up to 7% each year I guess the yield is not too bad especially in this market I think the 7% yield is really not too bad I know that some investors want double digit yield but we also know that it's not the easiest to sometimes get in certain markets so it really does vary in terms of how different people solve for it. Now look at selling because the selling one so many people are finding themselves right now being first time sellers very well may not have been the first time by maybe you already have three properties in your portfolio and you now want to offload one of them or two of them to upgrade or because you are in financial disgrace when we are looking for a property that we want to sell what are some of the key things that we first need to look at before we even set that price and add on private property okay thank you just going back a little on that rental space just a little comment what we have found because of the lower interest rates you find that a person on their million rent bond before the drop in the interest rates they were paying 10,000 rent on their bonds then the interest rates go down they are paying 8,000 right now so we are finding more and more people are actually able now to kind of cover their bond so really the interest rates have done quite a bit of justice in terms of bond repayments and people being able to meet their bond repayments with the rental income so yeah that was just one comment that I just thought let me add now about selling there's so many dynamics when it comes to selling but I can never stress enough the importance of pricing correctly especially in the current market because if you do not price your property correctly it's going to stay on the market and there is so much especially for people in a market where there's so much properties for sale your property number one has to stand out and not only does it stand out people are able to compare especially now we've got platforms like your private property where everybody will see oh a three bedroom in this area it goes for 1.5 four bedroom in this area goes for 2 million so automatically if you are not well priced you eliminate yourself from the market so you know based on those things it's very important to actually get on board a property professional who can be able to assist you with a comparative market analysis of the area and also if I could just stress that just because you see your neighbor has got their property on for 2 million it doesn't mean they will sell it for 2 million so don't price your property according to what is on for sale price it according to what don't price it according to the listing price like its properties listed for this much but rather price it what has it sold for because someone may over price their property at 2 million and maybe it's worth 1.5 million and I'm going to say oh but Zama has properties on the market for 2 million so I'm going to put mine for 2 million what we need to make sure we understand how much will Zama sell her property for so whenever you do a comparison you know in terms of correctly pricing you need to look at what has sold in the area versus what is on the market because a property can stay on the market for a whole year and not sell therefore you cannot base your property price on that and also if I may just say buyers right now are very informed especially that the millenials they do their homework they search they look social media they look platforms porters everywhere so they are very very informed so you cannot go and determine the value of your property by you're dead say oh no but I'm owing SARS and I'm owing you know this and that that doesn't determine the value of your property what determines the value of your property are the current market tendencies what is happening in the market and the value of your property it's not even determined by oh but I want to go and buy in such and such an area and houses are expensive in such and such area that cannot determine the value of your home so it's it's a lot of things that are involved but the long and the short of the matter is that you have to your property if you wanted to sell at a good price it has to be sorry if you wanted to sell at a good price it actually has to be put on the market at a good price because if you're overpriced you know you shoot it off there it's going to stay on the market and as time goes on the buyers are just going to look oh my six months later this house is still on either there's something wrong with this house or they start to think probably the seller is desperate and you know what happens when they think you're desperate they bring the ridiculous offers even worse than what you would have gotten if you had prized your property correctly so we can never never never stress enough you know the importance of pricing correctly from the get go you've actually given us so much to chew on I think the first big one is understanding the the risk of not pricing well as a as a seller and of course there's you know these homework that you will do and certainly the estate agent that you're going to be working with is going to bring you a pack say look you know they typically will value your property and they'll say that this is their recommended price that I think you should put it on the market and I think one of the big things that we like emphasizing and that I also you know only share is that you want to work with the area specialist because then they know that area intimately they've probably just sold two other properties you know in your same area so they really have a good sense of your area so don't just work with somebody who covers you know 20 different suburbs that are in different parts of you know how dang they don't have an intimate understanding of the particular suburb that they're working with so get an area specialist because they'll be able to tell you that you know they've actually got four other properties in the area two of them have recently sold this is you know how much it was listed for and they were able to get this so they'll be able to be up front with you and the big thing as as a seller as points out is you can't want to set the price based on I still need to pay you know SARS or whatever the case is because you can't bank on that the market unfortunately doesn't work on that doesn't work like that and and you run the risk if you don't adequate your price of your property staying on the market for too long nobody wants to entertain stale stock we're already talking about how how much there's just an oversupply of stock the moment I see properties that have been on the market even for longer than six months I also start wondering okay what's wrong here you know what is happening I mean they're searching properties that have been on the market for over two years some that I track have been in the market for over four years and they keep changing agencies to list with them so you also see that this is an unreasonable seller who and just the price already tells you that this is ridiculous it's not comparable with what's happening with other properties so you really want to get a sense of where the market is before you even look at your own financial considerations where is the market and is the price that you're going to set in line with where the market is and the other really great thing I'm going to be so highlighted is don't look at your neighbors don't keep up with the list for another million and their neighbor I want to list for three million they can list for their 3M but it only gets sold for two and you didn't go the extra step of actually finding out how much it's sold for and you'll go and list for 3M thinking so it's really important not to play keeping up with the Komalos we're taking your questions and comments on our Facebook page of course as well as on our Instagram and our YouTube page this evening as I'm in conversation with Onondu Misumta CEO at Idwala Property Group look at how to price your property right especially for people who are looking to sell and of course if you're also looking to understand how you should adequately price your property if you're a serious seller this is a great market to sell their buyers they're qualifying and they're buying so you really do need to be a serious seller who sets the price right going to your comments at home we've got saying I always say that people who invest in townhouses don't get enough to cover everything should be established with the other properties that have profits to cover the shortfalls borrowing from Peter to give to Paul I don't know I like looking at every property as almost its own individual business because then you're able to adequately see whether you're making a profit or a loss but if the other one let's say the one is a student accommodation unit and you have net yield of what 20% and another one is just as you're saying in a complex and your yield is at 6% or it's even running at a loss you need to be able to identify which of your properties is doing well which is not doing well and are you going to offload the ones that are doing well to be okay with subsidizing them for it because really the strategy with it is capital accumulation as opposed to it being cash flow property so I would discourage having a principle of borrowing from Peter to give to Paul you really do want to get a sense of your individual properties and how they are performing before you kind of move the money around and another comment here on our Facebook page coming through from Omen Zibutilesi saying that minimum is 1% of the cost of the apartment and I'm currently charging slightly more and the payment covers everything and that was a course to the earlier question of if you have a rental property is the rental amount covering everything and if it's not how much do you subsidize it for and another comment coming through from Usemi Mashanze saying multi-lids are assisting me a lot Phil Nelpak is not doing very well and is assisted by Soshenguwe House I never thought something like that can happen but pandemic has changed things around but for now I'm surviving hopefully in the coming year things can change to be better and you've got another great comment there coming through from Umadze Mkhutlane saying awesome show to date they might say we're certainly getting a sense that we need to be on top of how we price especially selling when you're selling in this market especially for people perhaps who might even be distressed sellers or potentially about to be distressed and really preemptively saying I'd rather upload this than wait until it isn't or see better then I think what tips would you give people who are in a particularly financially difficult situation who as we were pointing out earlier are probably calculating based on as opposed to calculating based on where the market is Konamaji you know for let me start with those who are offloading and who can afford to offload yet are thinking about their debts there is just what should I say a slight misconception that sellers have let's talk about the normal seller now who hasn't got financial you know financial strength you know you'll find that seller says oh you know what I'm looking for 1.5 million for this property now this agent is saying this property is worth 1.3 let me do a 100,000 grand bathroom so that at least I can bump it up you know or whatever the case may be what I'm trying to say is that doing a certain renovation for a certain amount will not warrant you raising a price by that certain amount rather try and stick to renovations that add value to the property so in other words let's say putting expensive accounts don't put an expensive account put expensive account 50,000 and then expect that the value is going to jump up you know rather invest on renovations maybe something like a garage you know do a garage renovate your bathrooms try and stick to renovations that are within fair value so that you don't fall into a trap of overpricing because what you find with sellers they say oh no but why are you telling me 1.5 these accounts cost me 50,000 grand but you see those are cosmetics and putting a 50,000 grand and a 10,000 grand it might not be it might not be value for money for a buyer so we need to be very careful with renovations just because you know your appliances you put in your kitchen oh no but these are 150,000 grand appliances so I'm raising my property above market value I'm raising it above the ceiling because of my appliances so we need to be very very very careful when it comes to renovations rather do renovations like I'm saying that add that are value for money that people value oh my there is a garage there is a car porch you know things like that that are more substantial and then also when it comes to those who are selling because of you know financial distress they fell into financial difficulties you know you tend to find that sometimes the property is not in typical forms you know it's not in the best of conditions sometimes there's been a strain you know there's been a struggle you know things are not it's not like in its prime days you know in its hey days so small things that can help you to increase the value of your home you know I think we've discussed it with you before you know when we spoke about maybe you could look at a lick of paint for your property rather because you obviously want to afford anything as expensive you know those falling cupboards you know what's falling what's skew put back those screws you know tidy it up clean the house make sure that the yard you know it's cut look at your bathrooms the mold you know it's very small things that can actually you know kind of juice up the value of your property without you having to spend so much to actually to actually make it into the potential potential buyers so also another thing we are finding that there's a lot of properties that are going on into the market as much as there's also a lot of buyers coming in as well there's a lot of properties coming on into the market so there is a thing where you really have to make your property stand out and especially if you're an urgent seller make your property stand out make sure it's priced correctly so that there is an incentive for our very informed generation of buyers to actually you know say you know what this one stands above the rest make sure you do things that will justify your price try and you know try and make sure that okay you know what it's not as fancy but it's so clean it's well looked after it's a stable you know it's stable it's clean and people are able to see more potential in a clean home than in an untidy home so there are things that don't need money for you to actually you know make your home more appetizing just cleanliness more care you know here and there touch ups and you're well on your way and I think that's such a great way to to wrap our conversation so the big thing there is do not over capitalize it's such a big one you you're not going to suddenly add 200,000 rands worth of value to your property in an area for example where the you know the price cap is a certain amount so you really need to be on top of that and I know a lot of people as Ndubi Saw has pointed out think that if I renovate and put expensive finishes in a certain area therefore I'm going to get you know 100,000 rands more except that area doesn't charge that kind of amount so we really really need to be careful when you're doing renovations that you do not over capitalize I see this mistake a lot I think we tend to be okay with it if it's our primary residence because we know we're staying there we want the nice you know fancy finishes but if you know that it's not a place that you're going to be staying at for you know for an extended period of time or that you're going to be selling it you really do need to watch your renovations we've got last two comments before we wrap up the show coming back saying yeah renovations add value then putting in things that will make a property to look nice and don't add value to the price tag and saying thank you for this insightful information Ndubi Saw has tagged 1 million followers and that's of course the competition that we are running on our Facebook page is we've come down to 1 million followers to make sure that you engage with us and you stand a chance of walking away with cash prize every single day unfortunately this evenings when they did not claim their prize did not claim the prize and so the money rolls over tomorrow evening it's going to be 1,500 rounds so make sure if you've liked, shared, given us a review watch the show live because if we call your name you need to text us before we leave Ndubi Saw it's always such a pleasure to have you on the show Siabonga for being with us have yourself a great evening thank you so much I have a good one yourself thank you for having me and that is Ndubi Saw I am the CEO at Idwala Property Group wrapping up the Tuesday edition of the private property podcast with myself I'll be back on the screen tomorrow evening at 7pm it is a Tuesday so you can catch award winning farmer coming to your screens at 8pm with the farm and podcast until then hope you stay home and stay safe