The current climate has emphasised the fact that property is the most secure investment asset class. Factors such as the recent interest rate drops makes it an ideal time to start or grow your property portfolio. We sourced the best property specialists across South Africa and the UK to bring exclusive insight and advice that will provide you with all the tools needed to take that next step in property investment.
Wrap your head around bonds
In Oct 2019 Ooba reported that their Loan to Value averaged at 88,4% which was the highest since they started in 2007. Bond originators help potential property buyers find comparison home loans at the best price. Not only do they take the hassle out of finding a good rate, but they also offer expert property advice that is helpful to each individual buyer and their situation; guiding and advising you through the tricky approval processes to ensure your journey to owning your home is not stressful.
Why off-plan property?
There is a myriad of benefits when investing in a good off-plan development from a trusted developer within a strategically positioned estate. First off, you are buying directly from the developer, which means that you are buying at a much-reduced cost and will avoid paying transfer duty. Additionally, estates offer convenience, are often situated in good locations, provide lifestyle benefits and access to local amenities.
Rental yields and capital appreciation
Yes, you can achieve both! As an investor, you will automatically start earning capital appreciation on your property, as the development value rises as it goes from construction through to completion. “A high demand residential property, in a good location, can potentially get a far better rental yield, and furthermore you also gain capital appreciation. Location is definitely one of the overriding factors where we see great capital appreciation and growth; properties around the R1 – R4 million mark have the potential to gain good rental demand. When you look at rental yield you are looking at the immediate cash ‘in-hand’ while capital appreciation is seen in the increased value of your property year-on-year. Despite the current climate, you can get capital growth; those individuals sitting with cash in the bank are losing money as the interest rates are being cut, while those who have invested in property are seeing 5 – 8 % return per annum. There is no doubt that property is a significant player in the investment field,” explains Charles Thompson, Director of Devmco Group.
“There is a lack of understanding in the benefits of property investment. Property is a long-term steady investment,” shares Pat Lambie, Former Springbok rugby Player and Sales Strategist, Collins Residential.
We have gone through key property investment strategies as well as have provided unique insight into the fundamentals of where to start.
This Property Webinar is essential for first-time buyers and those beginning their investment property journey.