Why Invest In Property
Property investment enables you to generate a passive income. This means that you can earn money you don’t have to work for.
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So, why should you invest in property?
Glad you asked! Let’s explore it together.
Firstly, let’s familiarise ourselves with what it means when you invest in buy-to-let property.
Buy To Let is when you buy a property for the purpose of leasing or renting it to a tenant.
Now, why do people do this?
Well, because when you invest in buy to let property, both your rental income and property value increase every year which in turn grows your overall wealth.
If, for example, you wanted to invest in a three-bedroom house that’s in a secure estate,
And it’s selling for R500 000 with a monthly rental of R5 500 and regular expenses of R300 per month.
Let’s say that growth in the area is 10% a year.
Since you’re earning around R5 500 a month from rentals,
And your total expenses are only about R5 200, you can save up to R300 per month after all expenses have been paid by the tenant.
Furthermore, your rental growth after year one will be around R6 050 per month, R6 665 after year 2, R7 320 after year 3, R8 052 after year 4, And R8 857 after year 5.
Thanks to a 10% annual capital growth, that same property will be worth over R805 000 after five years,
This means that your investment will have increased by R305 000!
You can then choose to sell it, or continue increasing your monthly rentals until you’ve paid off the home loan.
With that increase in the value of your home, you can refinance the property and purchase a second or third piece of real estate.
And if you repeat the process every two to three years, you can build a solid property portfolio and achieve financial freedom on your own terms.
With PropInvest, you can make all that a reality without needing any experience in real estate investing.
We do all the heavy lifting for you so that all you have to focus on is growing your portfolio.
Secure your free consultation today, we can’t wait to see you on the other side!
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