r/PersonalFinanceZA

Good day all.

I will be working in the United States for the next 2 years. I am planning to save/invest about $1000 ( R 16 613.98) monthly. My plan is to max out my TFSA as soon as possible and maybe keep my money in a high yielding savings account, as my plan is to put a deposit down on a flat when I return.

I have opened an account with Sygnia for my TFSA- Sygnia Itrix MSCI Emerging Markets 50 ETF and Sygnia Itrix MSCI Emerging Markets 50 ETF Cash Account.

I am unsure what accounts I should be using for my TFSA and, maybe potentially using Easy Equities to buy some EFT's.

I please need some advise on which accounts to pick for my TFSA and other accounts to grow my remaining savings monthly.

I am open to answer any question as I want to maximise my money for when I return.

Thank you in advance.

Hi everyone,

We were fortunate enough to purchase a property in the city bowl in Cape Town during the COVID “price correction”. Now 6 years later we have R2m debt against an asset worth around R12m. Pure dumb luck and timing.

This house would fetch about R80k per month in rental in the current market. Obviously there are maintenance, admin, tenant continuity, tax implications etc.

We understand that R80k per month isn’t a great return relative to the property market value, but it is relative to our equity that we put in to it. We are not looking to sell the property in the medium term due to personal reasons.

Our thinking is to extend our original bond to “free up” some capital to purchase a second property outright. We would increase the bond to about R5m (R3m loan and would add some cash from savings) and then live in the second property while using the rental of the first to cover, bond, rates etc.

The thinking is that we could come pretty close to breaking even on the two properties (risks notwithstanding) and continue to ride the capital growth wave in Cape Town.

What makes us a bit nervous is overexposure to the CT property market as this would be the bulk of our net worth. Also not sure if there is a better way to structure this.

Further context:
- couple in our 30’s, no kids
- monthly combined income of R200k gross
- second property just round the corner from first
- approx R3m invested/savings
- R300k emergency fund

Is our logic sound?

Edit for further context on current property:
- R2m debt current on home loan
- R2.5m on instalments and deposit
- R1.5m on renovation

Looking for some advice if anyone has some info!

I have been with discovery insure and have built up quite a big amount in my insure funder account. With the latest round of increases they are just totally unaffordable, and are now making it that you have to have a discovery account to keep earning fuel rewards.

Is there any penalty or any way I can be asked to repay any amount if I burn through my funder account right before cancelling? I want to go put tyres on my vehicle. I can't seem to find any information in their documentation except that I will forfeit any unused amount since I can't withdraw it as I havent been using the funder account for more than 3 years.

Anybody have any experience?

Thanks!

I would like to register a US LLC for dealing with international consulting clients. Will be 100% owned by me and all income will be moved to my personal bank account and taxed in SA as PIT.

I just want the US LLC for a layer of legal protection as well as access to Stripe and easier payment for clients who prefer dealing with USD.

Has anyone opened up a US LLC recently and then banking (Mercury, Relay, etc) and what was the process like for South Africans specifically?