At IGrow, we are aware that when you think of your loved ones’ future when you enter retirement, you will likely also ponder how their lives will pan out once you’re gone.
How will you secure your financial stability in your retirement years?
How will you ensure their financial security when they outlive you?
A steadfast plan to safeguard your family’s financial safety is through IGrow’s property investment options.
Property investment offers a stable and secure monthly rental income and physical property assets that your heirs will inherit. The properties will appreciate as the years go by. IGrow Wealth Investments will help you strategise to build your ideal property portfolio. This portfolio is created with your loved ones in mind. It generates wealth for your retirement journey and their journey, which continues when you leave them behind.
Strategies for property investment that ensure financial protection
To protect your family, the type of property investment that would suit your needs is a buy-to-let property. Since rental properties generate monthly income streams, you will be safe for years to come. Your loved ones will also be safe, which leaves you with a good feeling!
A traditional retirement plan or annuity makes accessing funds difficult unless you face an emergency. With traditional retirement routes, you also have less say over how your retirement funds are managed.
The alternative to traditional retirement plans is property investment. This is compared to the ease of access to monthly funds (a rental income) from a property investment. View our recent post: Retirement Property: The Best Strategy for Retirement Planning. Here, you will find out more about traditional retirement plans vs. property investment.
Your heirs or spouse will receive a monthly income from inheriting your property portfolio. This will be most welcome in supplementing household incomes and expenses and covering education costs or medical needs.
What should investors look out for before choosing an investment property?
As an IGrow property investment portfolio holder, you must consider certain factors when choosing your investments. You need to find a rental property in the appropriate location and choose the right property type. Utilising the appropriate financing tools will maximise your long-lasting return on investment!
A diversified property portfolio is key to avoiding risk. Investing in various property types, such as apartments, townhouses, and houses in different suburbs, protects you from market fluctuations.
The 3 R’s of Property Investment: Retain, Refinance, Reinvest
IGrow Wealth Investments’ Founder and CEO, the renowned property expert, Jacques Fouché, believes there are three key principles of successful property investment. These are known as the “3 R’s” or “Retain, Refinance, and Reinvest” (As seen in this explainer video by Jacques on our YouTube channel):
- RETAIN your property, letting it appreciate with time.
- REFINANCE: The increase in value of your property allows you to refinance your property by leveraging equity.
- REINVEST: You can reinvest the capital from refinancing and purchase more properties. In doing so, you can expand and diversify your property portfolio.
IGrow Wealth Investments’ expert strategist team assists you throughout this process of the 3 R’s. We aim to structure your property investment strategically. This plan will maximise returns and protect your and your family’s financial future.
An example of refinancing a property and its applications
“Refinancing” enables property investors to use the increased value of their properties to gain access to extra capital. When an investor refinances properties within their portfolio, they can restructure their home loans. This will improve interest rate terms and reduce monthly bond repayments.
The process of refinancing is similar to when you applied for your first home loan via IGrow Home Loans.
The bank will assess your refinanced home loan application and will look at:
- Your credit score and credit history.
- The payment history on your current property portfolio’s home loans. If you have encountered late repayments or dipped into excess capital, this will be taken into account.
- The value of your current rental home(s) will be determined and the equity* in the home/s will be considered.
- Any other debts (Source)
*Equity is the difference between what you paid for the home, what it is currently worth, and how much you still owe. For example, if you bought the property for R1-million, and you still owe R800 000, but it is valued today for R1.2-million, the difference of R400 000 is the equity.”(Source)
“To ensure that you are considered favourably for refinancing, it is a good idea to check these factors yourself, before the bank does. If you have a good credit score, built up some equity in the home, and if you remain securely employed, you will likely be approved.” (Source)
Refinancing is a powerful move, enabling property investors to capitalise on the value of their property assets while remaining “financially elastic.” By working together with IGrow Wealth Investments’ property portfolio planners, you can identify refinancing options that factor in your long-term investment goals.
Leverage Section 13 Sex Income Tax Act for a successful property portfolio
Property investment allows you to leverage certain tax incentives, like Section 13 Sex Tax Act.
“Investors with 5 or more qualifying investment properties get a write-off of 55% to 100% of the cost of the property.” – Jacques Fouché
This tax benefit basically puts cash back into your “capital accumulation bank”, helping you fund your property portfolio.
The IGrow Wealth Investments Process
IGrow offers you a step-by-step investment strategy tailor-made to your financial needs. The IGrow team of property investment strategists, financial property planners, and tax experts offers expert guidance. They will help you choose the right properties, secure appropriate financing, and optimise your tax benefits.
From property acquisition to property management, IGrow Wealth makes it their Modus Operandi to optimise your property portfolio. Our team aims to ensure you have the right financial protection and capital growth tied to your properties.
Conclusion
Rental property investment is one of the more successful ways to create financial security. With a secure financial future, secured, your spouse and dependents will benefit when you leave them to inherit your property portfolio legacy.
With the best strategy in tow and IGrow’s diversification guidance, your property portfolio will generate a passive income well into your future. It will support your retirement plan and ensure you leave a legacy for your loved ones. They will feel financially free in the lives that lie ahead of them!
Book a consultation with an IGrow Wealth Investment Strategist today and create lasting wealth for yourself and your loved ones!
