About Propertyskills
You can own property with no money down and you can earn a substantial income from it, both now and in the future.
Property Skillz has been in business for four years and has an excellent relationship with all the major banks. With your Property Skillz property equity and your personal income as security, the banks are perfectly willing to finance our properties.
Property Skillz only buys complete, entry-level townhouse complexes in areas experiencing sustainable capital growth, close to the tenants places of work. Because of the high crime rate and explosive growth of the middle class in South Africa, demand for entry-level houses in secure complexes is very high, ensuring good rental demand.
Property Skillz has put together an innovative investment package that allows ordinary people like you and me to buy and own multiple properties without using our own money. This enables us to create substantial investment portfolios that generate monthly income and that provide for our future retirement. Property Skillz achieves this remarkable feat by utilizing two basic principles, namely by negotiating bulk discounts with property developers and by leveraging the banks money. Property Skillz effectively helps clients set up their own property business, by providing the infrastructure and covering all the costs.
Benefits.
Property Skillz negotiates bulk discounts with the developers to the approximate value of R140,000, R160,000 per property. This discount is carefully calculated to cover all the first year's costs, including:
The initial 10%-15% deposit on the bond;
A R25,000 cash cushion (18% tax payable) which is paid back to the client upon registration of the bond. The investor can use this money as they like; to pay off other overheads, spend it or reinvest it in more property.
Property Skillz guarantees the first year's rental income and covers any shortfall in the bond repayment. If the investor decides to live in the property, Property Skillz pays them a subsidy on their monthly premium.
Lawyer and transfer fees, rates and taxes, levies, insurance, commissions, company and trust setup fees, rental management fees and administration costs are all covered by the discount.
Investors are therefore not required to put any money down, but they must prove (with pay slips and/or bank statements) that they earn a regular monthly income, whether by salary and/or commission or self employment. Bonds are then secured based on their affordability.
The investor can reinvest in as many properties as they like, as long as they have sufficient affordability. The greater your income and the lower your expenditure, the greater your affordability. With each property you buy you earn R25,000, boosting your income and allowing you to buy more property.
5-year growth using this method is around 61% as opposed to 12.77% growth from retirement annuities.
How Property Skillz safeguards your property and possessions.
To safeguard your property and possessions, Property Skillz has created a clever structure for you comprising a company and two trusts, one for your properties and the other for your personal effects.
Each property you buy is placed in a separate company, with you and your co-applicant/s as shareholders. The reason why the properties are bought in a company is because of the National Credit Act (NCA) Property Skillz has pre-registered companies available for this purpose, so the application goes through immediately.
You then donate the shares of the company to your property trust. You are the founder of the trust, the trustee and the beneficiary. Therefore, the company shares are owned 100% by the trust. You are a trustee, but you own no shares in the company. You therefore cannot have assets attached if you have signed personal surety for anything.
At the same time, and most importantly, we do not burden your personal name (credit record) with the responsibility of owning several properties. This is a common misconception by potential clients. You are not personally responsible for any debt. It is all covered by the company/trust structure.
Property Skillz pays the bond premium (including the rental income) into your company bank account, from where it is immediately transferred to the lending bank.
The second trust is for your personal possessions, eg: your clothes, furniture, vehicles, jewellery, appliances, electrical goods, etc.
With this structure in place, you do not own anything, the trusts do, but you control the trusts as the trustee. In this way, should you ever be declared bankrupt or insolvent, your creditors cannot attach your goods because they are not in your name, they are in the trusts' name. By law, if you don't have assets you cannot be sequestrated. Trusts are not liable for estate duties in the event of your death.
Grouping people together in a company to create affordability.
Some people do not have sufficient affordability to buy property. Property Skillz will group 2-4 of these people together in a company so that their combined affordability enables them to buy property. Together, they sometimes qualify for more than one property.
This group then shares the equity in the properties they buy and the R25,000 payout per property. Each investor gets his/her own trust to which they donate their shares in the company. They become the founder, trustee and beneficiary of that trust.
Refinancing.
As I mentioned earlier, all your first year's costs are covered by the discount we negotiate with the property developer. In year 2 and subsequent years, the costs are less than in year one, consisting mainly of the shortfall on the rental, insurance, levies and rates and taxes. These costs are again covered, this time by a process of refinancing, so you are still not required to pay any monies out of your pocket. By refinancing we are able to access the capital growth, and money made this way is tax-free.
Property investors don't sell - they refinance. Refinancing makes use of the additional equity in the property as the property value and rental amount goes up and the bond value goes down. By calculating the next year's costs and borrowing this amount from the bank again (including the capital you paid off the previous year your savings), we are consistently able to cover the costs without you having to pay out any money.
Towards the end of the bond term, the income from the rentals is higher than the monthly bond premium, so the difference is paid back to you as a monthly income, thereby providing you with a substantial retirement fund.
Why doesn't everyone buy property the Property Skillz way?
They don't know about it;
They are afraid of the responsibility of property ownership.
"I do not get growth on the money I put in - I get growth on the value of the asset."
A common objection from people who don't fully understand the Property Skillz concept and how it works is that they are afraid of getting into debt. If this describes you, you must remember that property is an appreciating asset, not a liability. The asset will always grow and provide the owner with equity. ('Equity' is the difference between the value of the property and the value of the bond. As time goes by, the property appreciates in value as the bond decreases, thereby creating greater equity).
In fact, now is the perfect time to buy property because:
Interest rates are high, and they must come down.
Property prices are low. When the interest rate comes down, property prices go up.
It takes some explaining for people to understand how Property Skills uses discounting and leveraging to their advantage but, once they understand it, they immediately become clients.
Property Skillz will even buy back a property if the client wishes to sell.
Who wouldn't want to own property without having to put any money down, get a cash cushion of R25,000 back on every one, get guaranteed rental income, annual refinancing and a ready buyer should they wish to sell? Only those who see negativity in everything. 'There are none so blind as those who WILL NOT see.'
How does Property Skillz make its money?
Property Skillz takes care of everything for you, for which they earn a percentage of every property they sell.
If you UNDERSTAND it
LIKE it
CAN DO it
And WANT TO do it,
There is nothing stopping you from DOING IT but yourself.
The next step is to become a member.