[LISTEN] Alan Rubin from Ooba outlines the pros and cons of borrowing to buy a property for short-term rental, particularly to tourists on MoneywebNow with SimonPB. Download the podcast below. Moneyweb Property
SIMON BROWN: I’m chatting with Alan Rubin, COO of ooba Home Loans. Alan, I appreciate the time today. Buy-to-let [has been] bouncing back very strongly, particularly in the Western Cape, which is now ahead of pre-pandemic levels.
ALAN RUBIN: Yes. Certainly if you were to look before the pandemic there were significant amounts of tourists – the boom and so on. Although I’m not sure that in the Western Cape we are completely back to the levels of tourists that we saw before Covid, we are certainly getting closer. With buy-to-let one of the first things to do is haul out that Excel spreadsheet and do a realistic number calculation.
SIMON BROWN: Yes, or something breaks or something like that [happens]. A deposit when buying a house is always a good idea. Is a larger deposit better for buy-to-let? I’m thinking of that, just because it reduces your monthly cost and gets you to break-even quicker. Then the other side is looking at it as your business and saying effectively you are gearing a business; you’re borrowing a certain amount in order to buy the asset and earn the rental income. What you say, if you look at the amount that you’re borrowing, is that the interest cost is going to [have to] match that. The less you borrow, the more likely your rental is to meet the full interest expense. So there’s a balancing act there.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
THEATRE REVIEW: The man with the golden tongue: Alan Committie’s licence to jestThe jibes and rib-ticklers, quips and backhanded comments fly fast and furious in Alan Committie’s 25th solo stand-up show – the pace and the ceaseless sense of imminent mania are precisely the escape, the reframing of reality through a comic lens we need right now.
Read more »
SA cannabis industry: A potential economic boost for the Western CapeAccording to the Western Cape government, the introduction of cannabis into the agricultural sector will create over 25 000 new jobs. It announced that the Cannabis Framework and Implementation Plan (CanPlan), a framework for introducing cannabis into the province's agricultural sector, will be launched this week.
Read more »
Western Cape High Court provides room for witnesses to calm nerves ahead of testimony | News24The Western Cape High Court launched a dedicated victim-support room on Friday to help make witnesses feel more comfortable as they prepare to help the courts make findings of some of the country's most traumatising cases. | itchybyte
Read more »
Wesgro plans ambitious air cargo export drive for the Western CapeCape Town focuses on aviation, trade and tourism for economic development.
Read more »
Western Cape road safety campaign welcomed by motorists ahead of Easter weekendBut some motorists expressed some ambivalence about whether it would be a successful campaign.
Read more »