Many people are under the misconception that investing in property is only for wealthy individuals. Successful property investors, on the other hand, know that they can start on their property investment journey without starting off rich. By adopting a well-thought-out strategy and embodying a positive mindset you are on the right track. In learning from property experts, you too can become a property investor in South Africa with a limited salary. This even applies to those with more limited budgets looking to break into the property market.
This blog post explores the ins and outs of investing in property with limited financial resources. We’ll also examine the origin story of IGrow Wealth Investments. We’ll uncover how our Founder and CEO, Jacques Fouché, began his property investment journey. We’ll share Jacque’s actionable steps to help you begin your property investment journey.
How do I become a property investor?
Before we look at the specifics, you need to get to grips with the fundamentals of becoming a property investor. Your journey begins with knowledge-gathering. You need to learn about the property market, and the different investment strategies successful property investors use. You also need to learn how to finance your property investment. Successful investors usually start in the property game with small investments, such as an apartment, as this requires less capital. (View our on-trend blog post: The 5 Best Property Investment Strategy Ideas in South Africa for 2025. Here we look at key strategies to adopt in property investment in South Africa in 2025. This is according to current property market trends and market behaviour).
Core strategies for successful property investment
Look around for potential properties in emerging suburbs
If you invest in properties in growing suburbs, with high rental demand due to local amenities and affordable rent, the value of these properties will appreciate with time while they generate regular rental income for you.
Be creative with financial leveraging
You could take out a joint home loan on a buy-to-let property. This is popular among married couples, and relatives (such as a father/mother with their son/daughter or an uncle/aunt with their nephew/niece, etc.). You can also go into business with some friends if you get the paperwork right. IGrow Home Loans can support your joint bond application, making investing easier if you’re splitting the costs. (View our insightful blog post on Joint Home loans and how they work: Joint Home Loans: Unlocking the Doors to Your Property Investment Dreams)
Our Bond Originators can also advise if you are eligible for a 100% home loan
For instance, if you have a family member willing to stand surety for you, or an existing property, such as an inherited home or piece of land, which can be leveraged to secure a loan. (This is great news! You get to keep your asset, avoid paying tax on the money you access in this way, and buy a new property! Sweet!)
Gain an understanding of property tax benefits
Investors can enjoy the perks of tax deductions on areas they may not have thought of. These include bond interest fees, property maintenance costs, and municipal rates. Some rules apply to rental properties that are very different from what you might know about property from buying a home, (your primary residence). This will reduce your expenses in general. The right advice on how to structure your purchase is essential. IGrow Chartered Accountants are specialised in all things property tax-related. They can help with advice that could save you money.
Read more about a handy tax incentive IGrow’s Chartered Accounted and Tax Consultant team helps you capitalise on, namely Section 13 Sex Tax Act in our recent post: Section 13 Tax Incentives for IGrow Property Investors.
If you become more in tune with how to tackle property investment and you adopt these core strategies, you can begin building a solid property investment plan. This plan aims to offer long-term financial wealth accumulation.
IGrow’s CEO and Founder- Jacques Fouché’s Property Investment Journey
Jacques Fouché, the IGrow CEO who created IGrow Wealth Investments, is a great example of a property investor who used his sheer determination and strategic plans to gain financial success in real estate. Jacques started with limited capital and focussed on utilising property investment strategies to maximise his return on investment (ROI) and minimise any potential risks associated with his property investment plans.
He bought his first investment property in Durbanville after thorough research into the market, with a 100% bond by getting his father to stand surety for him. Next, he leveraged the value of this property by refinancing it to get a further loan to build his business, without giving up the first income-generating property (and tax-free, as he hadn’t sold the property to raise the additional money, so he had no profit to declare and pay capital gains tax on).
Jacques kept fine-tuning his strategy and eventually grew his multi-property portfolio worth millions. His core philosophy is to purchase buy-to-let properties, optimise rental output from his tenants, and then refinance and reinvest any profits, putting that capital towards new property opportunities.
4 Lessons to be learned from Jacques Fouché
- You need to gain an education in the property market: knowledge gives you insight into property investment. If you seek to learn about property market trends, potential financing options, and the legal considerations of property purchasing, you will line things up for a successful future property empire. Jacques calls this Leveraging Other People’s Knowledge (OPK).
- You should leverage financing: in Jacques’s case, he made use of bank loans, and creative refinancing options, and reinvested his rental income in order to grow his portfolio.
- You need to start small and then scale: Jacques began his property investment journey by buying individual affordable properties, then leveraging the equity in these properties to buy more properties, building up a portfolio in areas with high rental demand.
- Surround yourself with experts: seeking advice from financial planners, property research specialists, chartered accountants, and legal professionals helped him make informed decisions.
If you follow these 4 Lessons Jacques himself learned, they can help anyone become a property investor, whether their bank balance is big or small.
Examples of Successful Property Investors
A large number of successful property investors began investing with limited capital and went on to build their wealth through careful strategic planning.
According to Jacques Fouché, if you strive to persevere and adopt a structured approach you will meet success! Jacques doesn’t believe that a property investor needs to have large sums of money at their disposal. He believes that if you utilise the resources you are surrounded with wisely, you can become a property portfolio winner in the long run.
Jacques Fouché asks, “[What is ]the perfect business that has created more millionaires around the world, than arguably most other businesses, and which is entirely for all for those who believe enough in their dreams and their own personal financial freedom?”
“The answer is: it’s your own real estate buy-to-let investment business. It’s never been easier than it is today, with access to technology, systems, structures, software, an expert team and the internet today it’s possible for you, and any average person earning an average salary, to become financially free with this powerful property investment business.”
View Starting Your Financial Freedom Business on IGrow’s website for more information about starting your own buy-to-let investment business, where Jacques explains this in more detail.
Property Investments using a limited budget
If you find yourself in a position where you don’t have a lot of money for a property investment you want to make, try these actionable steps to set yourself on the right path:
Better your credit score
Having a good credit score helps when you want to apply for a home loan that offers you favourable terms. Keep your financial documents organised and safely stored. Pay off debts and try to avoid credit applications that aren’t entirely necessary.
Join forces with fellow investors or get someone to back you
Chat with friends and family, perhaps somebody you know would like to aid you financially, or is willing to stand surety for you, so you can take the plunge into becoming a property investor. In this way, you can start your investment journey sooner rather than later.
Buy the right type of property
Choose a property at a below-market-value price, which is in a good area with high rental demand, rather than aiming for the most expensive suburbs where property is often over-priced and difficult to tenant. As a current example, properties at Tradewinds in the very popular rental area of Ferndale, Randburg, are priced as low as R679 000 and the expected monthly payments for investors getting rental income, and with our rental assist programme, is as little as R1 657 per month – that’s less than most people pay on car payments! AND, it’s buying an asset that will make more and more rental income over time, while also growing in value. There are no bond and transfer costs either.
Talk to a bond originator
Talk to a bond originator at IGrow Home Loans and you are far more likely to get a bond and to get the best loan terms possible. Their service is free of charge. This is because IGrow Home Loans will send your application to a range of banks and other financial institutions and they will compete for your business. What most first-time investors also don’t realise, is how much banks love buy-to-let investment properties, and as they are familiar with IGrow’s excellent track record over 20 years of due diligence on property investment, they know they are backing a winner when you invest in these properties!
How can I learn more about how to become a property investor in South Africa?
South Africa offers various gateways for investors wanting to start their property journey. If you are a first-time buyer or a seasoned investor wanting to grow your property portfolio, you need to understand property market trends and how to leverage financing. Become a property investor in South Africa by following a sound strategy and accessing the resources around you.
If you are serious about becoming a property investor, certain resources are at your disposal and will guide you on your way:
- Books: Acces Jacques Fouche’s ebook, 10 Steps to Building your Property Investment Empire, or try a book like Bricks for Chicks by Tanya Haffern
- Access Course material on our IGrow website: such as “How to Build Your Property Investment Empire in South Africa” written by IGrow’s CEO, Jacques Fouché on property investing strategies.
- Attend webinars: Jacques offers and leads a free webinar each Saturday of the month. Make sure to keep your eye on the IGrow Wealth Investments’ website, to see what Jacques will be talking about in upcoming webinars. He shares handy property investment tips and explores current market trends. He also breaks down any new legislation surrounding tax, the economy, interest rates and whatever is current and happening in the world of property.
- Check out the IGrow Video Training videos on our website: if you don’t have time to attend our webinars, some handy explainer videos led by Jacques are on our website. There’s so much you can learn from him! He has gathered many helpful strategies over the years of dealing with his personal property portfolio and in the running of IGrow Wealth Investments.
Final thoughts
You can start investing in property, even with limited funds to your name. If you adopt the right approach, you seek knowledge and guidance from experts such as the nimble team at IGrow, you can build up your property portfolio. If you glean knowledge from industry leaders like Jacques Fouché and you take small, thought-out steps, you can become a successful property investor with time.
With IGrow’s 2 decades of expertise, you will make headway when they assist you in achieving a tax-optimised property portfolio, as they have assisted him with his portfolio:
“My tax specialists ensure I enjoy all the tax benefits that SARS gives us. Like section 13 sex of the Income Tax Act, that gives investors tax allowances on new developments or off-plan developments.” – Jacques Fouché
