Stocks, shares, unit trusts, forex – the list goes on and on. Your choices for investing money for the future are seemingly endless, not to mention pretty complicated. One of the biggest things holding South African’s back from investing their money is the confusing nature of investing. However, there is one investment that most of us understand – buying property.
And more specifically buying property as an investment. The great part about “buying to let” is that your investment has a few avenues for growth, as well as a longevity that is almost unparalleled in the investment sphere.
Why Buy to Let?
The main reason investing in property is so appealing is that you are able to get financing for it. There are very few financial institutions who will loan you R1 Million to buy up a large chunk of a company or invest in Forex. However, they will supply you with a buy to let mortgage. The great thing about getting a home loan is that it’s structured to be affordable and lets you “own” your entire investment for only a fraction of the cost each month.
How do I get Paid?
The biggest bonus when it comes to buying property as an investment is that you not only own a tangible asset but are able to create a new stream of revenue from it. Renting out the property not only generates extra income but, in some cases, can pay off the entire bond singlehandedly. Rental income is directly linked to inflation so you will always be in control of your finances, as well as the asset you are investing in.
[blockquote type=”left, center, right”]A buy to let property investment is a no-frills, simple investment that we can all understand. Its this simplicity that gives most of us the comfort of knowing we have invested our money in something that, in the future, will be worth more than it is today.[/blockquote]
Things to Consider:
Your biggest concern should be where you’re purchasing this investment property. Ideally you should aim your search in areas you know are popular to live in, close to amenities and are able to generate enough income to pay most, if not all, of your home loan.
You search should be aimed at properties that are low cost but offer up the chance of a high return on your investment. The investment is not only in the rental income you can acquire each month but also the burgeoning growth in the area you are investing, as well as the future potential growth in worth of the property you buy.
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