Investing on a second property, with a first property in hand can be hectic. If you have a bond in hand you should consider paying it off rather than investing in a second property. therefore, it is better to consider the costs of builiding or buying a new house and determining whether rent will cover the
bond. If you are considering to tranfer bond into the bank then beware of the hidden costs.
As per Iona Minton:
If you have a R370 000 bond, but you are only receiving between R1500 and R2 000 a month, you will have to pay in extra towards the bond. Your rental would only cover about half of your monthly payment. You would also have to continue paying the bond on your first property. You also have not factored in a vacancy period, the time and money spent looking for a tenant, the agent’s fee if you outsource the letting, or any money towards the maintenance and upkeep of this property.
