Financial independence RSA
- Thread starter gracer
- Start date
canadianbroad
New member
@gracer Wow thats impressive. Hoe many people in the household and in what industry do they work? Also out of curiosity, renting or owning house/apartment?
EDIT: seems you have a home loan. Any reason why you eould pay that off considering the high interest rates as opposed to investing the funds.
EDIT: seems you have a home loan. Any reason why you eould pay that off considering the high interest rates as opposed to investing the funds.
@canadianbroad Wife and myself. Both healthcare.
We are renting out apartments and then renting ourselves.
Currently all our savings are moving towards the loan. Trying to have R1m left to pay off by EOY. If the markets crash and burn then I'll take everything out of the loan account and put it back into the market if it reaches my entry targets.
We are renting out apartments and then renting ourselves.
Currently all our savings are moving towards the loan. Trying to have R1m left to pay off by EOY. If the markets crash and burn then I'll take everything out of the loan account and put it back into the market if it reaches my entry targets.
plainjane3
New member
plainjane3
New member
@gracer Just looked it up. For someone in their late 20's it's pretty impressive.
I essentially was starting to build a career then, and wished I had followed similar practices to what I do now.
Essentially I follow a hybrid of the FIRE principles naturally with a lean approach / lifestyle.
Essentially I planned on retiring at 39, instead I got divorced at 37... Which wiped me out and left me with R1.8M debt and a single house as an asset and no work.
1 - subdivided parts of the house and rented out - but picky but renting to clean individuals generally you get better at it. Bond is now just under R15k + expenses R3-4k.... [Rentals average R25k while living there].
2 - Went back into corporate earned R52k a month before tax. Effectively when I look at individual costs (and this is lean I was spending R3-5k on food / groceries) - now I have implemented eggs / natural feeding systems around the house for chickens / got rid of the grass - veg and Aquaphonics so I spend R1-R3k in food and groceries still fair amount of luxuries as well but my basics are pretty much free....
3 - Aggressive movement in work and moving went from R0 unemployed back to corporate R50k 3 years later I sit on R90-R100k (software development)
3.1 Opened a factory R5k passive effectively
3.3 House - R10-15k profit passive (just had plans passed that should allow passive to jump up to once done another R10k) and once business rights are given another R5-R10k on a swim school (I have experience running one) - the business should pull on a hands off approach R200k.
4 - Running free debt cycles right now on credit cards. Effectively have 2-3 really cheap almost R0 bank accounts and get the lowest ccard you can with the lowest fees. I look also at % interest period. Using that to cycle my 50 days interest free periods while getting rid of some capital investments for full off-grid solar and borehole decisions. Dump and pump method of dropping credit.
5 - I look at things like gyms as if you are going to pay R700 a month then you may as well put R700 pm into something beneficial that has asset value and then eventually the cost forever becomes R0.
(Built a gym on property) - bought treadmill / weights ect. And hard work as part of body building. Almost at the stage of free gym for the rest of my life other than general maintenance stuff.
6 - next project as passed is fully covering the pool, and incorporating solar ect. -you would be surprised at what functional stuff people throw out when they are struggling like working pool solar heating solutions (not new but pressure tested ect) pretty much no one seems it from above other than maybe Elon anyway.
7 - finished automating every room and plug in the house IP controlled with management systems for effective electricity usage.
I essentially was starting to build a career then, and wished I had followed similar practices to what I do now.
Essentially I follow a hybrid of the FIRE principles naturally with a lean approach / lifestyle.
Essentially I planned on retiring at 39, instead I got divorced at 37... Which wiped me out and left me with R1.8M debt and a single house as an asset and no work.
1 - subdivided parts of the house and rented out - but picky but renting to clean individuals generally you get better at it. Bond is now just under R15k + expenses R3-4k.... [Rentals average R25k while living there].
2 - Went back into corporate earned R52k a month before tax. Effectively when I look at individual costs (and this is lean I was spending R3-5k on food / groceries) - now I have implemented eggs / natural feeding systems around the house for chickens / got rid of the grass - veg and Aquaphonics so I spend R1-R3k in food and groceries still fair amount of luxuries as well but my basics are pretty much free....
3 - Aggressive movement in work and moving went from R0 unemployed back to corporate R50k 3 years later I sit on R90-R100k (software development)
3.1 Opened a factory R5k passive effectively
3.3 House - R10-15k profit passive (just had plans passed that should allow passive to jump up to once done another R10k) and once business rights are given another R5-R10k on a swim school (I have experience running one) - the business should pull on a hands off approach R200k.
4 - Running free debt cycles right now on credit cards. Effectively have 2-3 really cheap almost R0 bank accounts and get the lowest ccard you can with the lowest fees. I look also at % interest period. Using that to cycle my 50 days interest free periods while getting rid of some capital investments for full off-grid solar and borehole decisions. Dump and pump method of dropping credit.
5 - I look at things like gyms as if you are going to pay R700 a month then you may as well put R700 pm into something beneficial that has asset value and then eventually the cost forever becomes R0.
(Built a gym on property) - bought treadmill / weights ect. And hard work as part of body building. Almost at the stage of free gym for the rest of my life other than general maintenance stuff.
6 - next project as passed is fully covering the pool, and incorporating solar ect. -you would be surprised at what functional stuff people throw out when they are struggling like working pool solar heating solutions (not new but pressure tested ect) pretty much no one seems it from above other than maybe Elon anyway.
7 - finished automating every room and plug in the house IP controlled with management systems for effective electricity usage.
@plainjane3 This is great. You sound like you're on a good path now after your divorce. Software devs do so well nowadays... just don't overburden yourself! You've got a lot going on.
@gracer Good going. Just keep plugging away at the savings as it matters more than the growth. We're further along in age, but we've hit that grind point, income no longer matters to net worth really.
How are you finding the returns on SA property? I stopped SA rental real estate about 10 years ago, so have just stuck it out with local+international shares amd some reits and with the weak rand these have done acceptably.
Is property still a viable option in SA? Or is it Cape Town only...
How are you finding the returns on SA property? I stopped SA rental real estate about 10 years ago, so have just stuck it out with local+international shares amd some reits and with the weak rand these have done acceptably.
Is property still a viable option in SA? Or is it Cape Town only...
@gracer You can deduct rental expenses from your own income tax, there's provision for it in the tax return. Just issues around ring-fencing and SARS potentially scrutinizing it more.
A property in a company can be cleaner, but you pay for the accounting services, and when you sell your CGT is higher in a company than personal.
Depends on how many you were buying as well as to whether it's worth it. Did both, but for a single property it didn't seem worth the admin of a company.
Yes, it seems that Cape Town is the only city still experiencing property growth. On a personal property in SA we're behind from a decade ago in real terms, and marginally up in nominal terms. Need the cities to function again for there to be any chance of appreciation. If I had to move, would probably rent, but for now my property ownership is a reduced expense that I don't need to make bond payments on as opposed to an investment.
I've got some listed property shares and they've been pretty poor too.
It seems to be able to get and exceed the 4% rule basis it's been a combo of offshore shares for growth, and SA assets to provide potential income (dividends, reits, bonds etc), but with them hopefully growing slightly above inflation.
I don't feel confident you can do the 4% rule purely on SA assets anymore like the old Trinity study and others implied, and really need to hedge against sovereign risk.
A property in a company can be cleaner, but you pay for the accounting services, and when you sell your CGT is higher in a company than personal.
Depends on how many you were buying as well as to whether it's worth it. Did both, but for a single property it didn't seem worth the admin of a company.
Yes, it seems that Cape Town is the only city still experiencing property growth. On a personal property in SA we're behind from a decade ago in real terms, and marginally up in nominal terms. Need the cities to function again for there to be any chance of appreciation. If I had to move, would probably rent, but for now my property ownership is a reduced expense that I don't need to make bond payments on as opposed to an investment.
I've got some listed property shares and they've been pretty poor too.
It seems to be able to get and exceed the 4% rule basis it's been a combo of offshore shares for growth, and SA assets to provide potential income (dividends, reits, bonds etc), but with them hopefully growing slightly above inflation.
I don't feel confident you can do the 4% rule purely on SA assets anymore like the old Trinity study and others implied, and really need to hedge against sovereign risk.