Property investment? … Here’s why you should!
Regardless of who you talk to about investments, everyone has an opinion as to which is the best – and they can give you valid reasons for their preferences. But in the course of the conversations, ‘property’ will usually be cited among their choices but some of the reasons people prefer to use property as their investment vehicle will vary too.
Here are some of the best reasons that investing in property is a good choice to make if you want to secure your future:
- It’s simple. Investing is property is not complicated – you buy it, usually by using a mortgage (other people’s money) and rent it out to a good tenant. As long as you have done your homework and bought in a good area that is in demand from good tenants, it will give you a nice passive income together with capital growth, year after year. All you have to do is keep it maintained so that it continues to attract the type of tenants you want to attract and ultimately a good buyer some time in the future.
- It’s a tried-and-tested system of investing. Buying investment property with the view of buying in order to let them out has a long track record with successful property owners across the globe. They look for and then buy the best property they can in the right areas and let them out to the best tenants they can find. They then enjoy the benefit of monthly income and underlying growth of their asset.
- It’s low-risk. If you use the tried-and-tested strategies that the specialists use, your buy to let investment property will be the perfect low-risk asset that will grow steadily in value and you’ll be able to avoid the market volatility that short-term investors find themselves susceptible to.
- It’s a high return investment. In the two-tier approach of looking at your investment property as a growing capital asset plus one that gives you an income, it yields a high return!
- For example: if R500 000 was invested in your buy-to-let property and your rental income was R5000 per month your return would be 12% per annum. And if you property increased in value by 8% your ROI would be 20% in the first year!
- If inflation at 5% was factored in, then your real return would be 15% – and year after year, these returns will be even more impressive.
- It’s a hedge against inflation. Past performance is an indication of future performance, and historically buy-to-let property that you invest in will outperform inflation. Plus, the rental income your property will command will also keep pace with, and counter any negative effects that inflation might bring to bear against the returns that you seek to earn from the asset.
- It’s something that can be ‘geared.’ Gearing is another way of saying that you can use the value of the asset to borrow other people’s money to fund it. Buy-to-let property is perfect for this and it allows you to secure the same process people like Donald Trump use to grow their assets.
- It’s controllable. Investment property is a wonderful asset that you can retain control over. Rather that pay your money and hand it over to someone to manage and you lose sight of, buy-to-let property is an exciting and stimulating way to involve yourself in the business of making your investment grow.
With the tools and structures IGrow can make available, the team of professionals work with you to help you on the road to achieving the success you deserve. For advice and guidance, look to our team of independent specialists who have the track record of success, integrity and security that you want.
Contact us at IGrow Wealth – we’d love to help you on the journey to achieving your property investment goals.
Let us know your thought in the comments below, what are your best reasons for investing?