In South Africa, increasing numbers of investors are aware that leaving a legacy is more than just handing over property assets. It’s about creating lasting generational wealth. At IGrow, we believe that property is a powerful tool for leaving a lasting legacy for our loved ones.
Below, we’ll explore what you should take into account before you build a property investment empire to leave a legacy.
“Leaving a Legacy” Meaning
The term “leaving a legacy” refers to passing on something of value to the generations that outlive you. The legacy could be financial, moral, or educational, among other things. With property investment, the “leaving a legacy” means that you need to create a property portfolio that will provide income and capital growth after you are no longer here.
IGrow’s CEO and Founder, Jacques Fouché, believes,
“The smartest investors don’t just invest for today, they invest for their children and grandchildren. That’s how you build an empire and leave a legacy that endures beyond your lifetime.”
Why is creating a property legacy a good idea?
Savings are not always stable, whereas buy-to-let property provides physical assets that generate monthly rental income. Your properties will also appreciate over time. Your heirs will be able to enjoy passive income streams AND the equity you have built up.
Read our post about creating generational wealth to learn about educating your heirs on financial matters and running your property portfolio, so they can manage when you aren’t with them anymore.
| The Pros and Cons of Leaving a Legacy Through Property |
| PROS | CONS |
| Wealth Creation: Property appreciates with time. | Property requires maintenance over the years. |
| Passive Income: Rental income will support your heirs financially. | Family disputes could arise if the estate hasn’t been set up well, together with the deceased Property Holder’s Will. |
| Stability: Physical property retains value in economic uncertainty. | There may be estate duties regarding the transfer of property to the heirs’ names, if you do not set up the correct structures. |
| Empowerment: Helps family members left behind start businesses or study. | You should educate your children and grandchildren about running the property portfolio so they are equipped to continue growing the portfolio once they inherit it. |
| Control: You can decide how and when your property assets are passed down. | If the property is held in a trust and company structure, this means no need for estate duties and other issues, but if not, it is time-consuming and costly to set up after the deceased property portfolio holder is gone. |
The Pros and Cons of Leaving a Legacy Through Property
Even though there are a few admin-related hurdles that may arise, the pros outweigh the cons. If you partner with IGrow, you can grow your estate and prepare it in a properly set-up trust and company structure for the loved ones you will leave behind. Our expert team will help your heirs with estate planning to minimize or eliminate tax liability.
How can IGrow help you to leave a legacy?
At IGrow Wealth Investments, our team helps everyday South Africans build long-term plans that align with their personal retirement and family goals.
IGrowTrusts will help you set up a trust and company structure, which will facilitate the seamless transfer of your property portfolio to your heirs. View this post on the benefits of a hybrid approach of setting up your assets in a trust and a company.
By using IGrow’s services, you will have access to legal and tax experts, financial planners, and property investment experts who understand your needs.
Conclusion
Leaving a legacy via property assets is not only about the monetary benefits for your heirs. It gives your children, as well as your grandchildren, a leg up in life. You will be able to teach them about property matters, so they will be ready for the future. They will be able to live well through your legacy and grow your property empire long after you are gone.
Are you ready to build an empire and leave a legacy that will last for generations?
Contact an IGrow Property Investment Specialist today and secure your family’s financial future through wise property investment moves.
