The Wealth Creation Specialists

At IGrow Investments, we assist South African Property Investors at every stage by identifying and acquiring high-performing properties that provide above-average rental income and capital growth yields. We believe our clients deserve to be financially independent, which means building wealth through your own accomplished property portfolio.

Bonding People to Properties

Our expertly-trained team of specialists are available to assist you with pre and/or refinancing applications. They will ensure that your application has the best chance of success by procuring the right bond for you, saving time and energy while ensuring peace of mind.

Leverage Your Wealth

IGrow Trusts is dedicated to helping you discover financial freedom. Our team specialises in property investments, asset protection and estate planning, by implementing trusts as well as corporate and commercial structures. Receive optimised tax benefits, wealth creation and risk mitigation.

Making Your Investment Profitable

At IGrow Rentals, we take away all the hassle and give you rental profits. We conduct credit checks, draw up leases and conduct inspections before entering a new tenant into your property. We also conduct rent collections on your behalf so you can rest assured that each month your rent will be collected in full.

Accounting You Can Trust

As with any business, proper bookkeeping and accounting is of the utmost importance. This is especially true for trusts. Our professional trust accountant will manage your books to ensure that you are fully compliant with SARS regulations, and will also provide a full annual review of your accounts to ensure that everything is running smoothly.

Growing Property. Growing People.

IGrow Real Estate is committed to building value for our investors. Through an extensive network of property developers and secondary market agents, we connect land and development companies with unmet demand from our global pool of investors. Our mission is to create wealth for our clients through prospects identified and vetted by our team of experienced and dedicated investment strategists.

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Consumer shift from renting to owning may have reached a climax

The latest FNB Property Barometer suggests the local ‘renting vs buying a home’ trend may have peaked in South Africa. Our general manager of property portfolio and planning, Sean Johnston, discusses the effects on the property industry.

Renting vs owning a home

“This is reflected in the stabilising flat vacancy rates and bottoming rental inflation. These shifts played a vital role in supporting home buying activity in 1H20 and into 2021, mostly in middle-priced segments,” said Siphamandla Mkhwanazi, a senior property economist from FNB.

For property investors, this could yield promising returns on their portfolio according to Johnston. This is due to the fact that there could be more demand from tenants in the future.

He explained that as an end user, the benefits of renting outweigh those of owning property.

“Buying a property has a lot more responsibility as you are liable for the outstanding bond, utilities, rates and levies. As a tenant, you are liable for paying the rental amount and the use of water and electricity and this can be much lower than paying all the aforementioned expenses,” he elaborated.

Homeowners have to consider maintenance costs while a tenant has the freedom to relocate after their lease has expired. Therefore,  the incentive to buy property subsides and the rental market will fill again said Johnston.

“For this reason, this is why there will always be a rental market in South Africa. Once tenants begin to enter the market, rental prices will increase again.”

Annual house price growth

 

The FNB Property Barometer recorded the average house price growth at 3.5% for the third quarter of 2021. In contrast, this has fallen from the 4.8% recorded in the year’s second quarter.

“The slowing pace of price growth coincides with the weakening market strength index as demand growth continues to slow relative to supply,” said Mkhwanazi.

However, he noted that these data points still exceed pre-pandemic, 2019 levels.

“Market activity is still benefiting from lower interest rates, albeit to a lessening extent, as well as the pandemic-induced shifts in consumer behaviour, which leant in favour of homeownership,” he said.

Effect of July riots

 

A running theme from this report determined the effect of the riots seen in July. Slow activity was particularly noticeable in Kwazulu-Natal where most of the riots took place.

Meanwhile, 51% of estate agents surveyed in Kwazulu-Natal were satisfied with prevailing market conditions. In contrast, 71% of estate agents were satisfied with prevailing market conditions as a national average.

“The indicator remains upbeat, particularly in the Western Cape, presumably in line with activity that is still above pre-pandemic levels and on anticipation that unrest in KZN would benefit the Western Cape,” said Mkhwanazi.

Johnston, however, believes this trend is rather reflective of the province’s natural beauty and quality of life.

“The property prices have therefore always been more expensive, particularly in upmarket suburbs such as Camps Bay, Llandudno and Constantia. The rioting in Kwazulu-Natal and Gauteng has impacted the GDP due to the drop in revenue on VAT,” he stated.

In addition, he does not believe the riots will affect property prices in the long-term.

“Due to the decrease in the prime lending rate, the residential buy-to-to-let market has seen minimal impact. This has resulted in a surge in property sales due to more homeowners qualifying for bonds. The rioting impacted commercial businesses and not the residential market so this has not had a big impact on property sales,” said Johnston.

 

At Igrow we want to prepare you for any eventuality. That’s why we can carefully curate and design a Wealth Plan tailored to your specific information.

The IGrow Wealth Plan becomes a useful blueprint for property investors as we look at the bigger picture and not just the present in terms of current provisions when planning toward a retirement goal. 

Click here to find out more information. 

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