According to Stats SA 36,300 new houses was built in South Africa during 2015.
This has been part of a steady recovery since the 2008 crash.
But before you go out and buy the first best rental property you see first heed my warning…
You need to bring the interest rate risk into your equation
Looking at the vast bulk of property prices today it’s clear to me buyers simply aren’t re... ››› more
Government set their sights on you and me - on our personal property. None of us are safe from this new policy.
The mining industry has long been a target of government. A way for them to suck more taxes out of private business through royalties, profit on taxes, and by forcing mines to ‘create jobs’ which aren’t sustainable.
But with commodities prices as depressed as they ... ››› more
I can see the merits of investing in property. You buy property, you rent it out, you sit back and over the years watch the value of your property rise whilst receiving a monthly income from your tenants.
It's something I really wanted to do, but my lack of knowledge surrounding investing in property left me in limbo.
What I needed was a thoroughly comprehensive guide that would take me thro... ››› more
While such structural renovations will ultimately increase the value of your property, they are time-consuming and costly, and unlikely to make you real profit.
But with cosmetic renovations that cost below R100,000, you could actually increase the value of a R350,000 house to R650,000, making yourself a profit of R200,000 in the process!
1. Security is of vital importance in o... ››› more
I spoke to friend of mine who was duped by a dodgy plumber out for a quick Christmas bonus. You see, his geyser was leaking water. While he was at work, the plumber popped over to his place and “fixed” the problems.
When he got home there was an invoice for R5,000 laying his kitchen table. What? R5,000 for a leaking geyser?
After speaking to his domestic worker, my friend realised that... ››› more
Property is one thing that I am really keen on. People I know who've invested in property over the years have done pretty well out of it.
Property as an investment seems to make perfect sense. For one, you own an asset that should appreciate in value over the years. And then there's the regular rental income too.
I have been desperate to start my own mini property empire and this is how I ca... ››› more
When you buy an investment property chances are it'll be in a sectional title scheme.
Before you bought it, you made sure to check you could get a great rental income from it, that the price was good and the levies are low.
But a single rule written into law could turn this attractive investment into a bottomless pit, sucking in all your money. Let me explain…
How your Body Corporate c... ››› more
When you become the owner of a sectional title property, things work a bit differently compared to if you'd become an owner of a freehold property.
A sectional title property may come with many conveniences and a lack of maintenance on your part. This is what you pay levies for.
But what about special levies?
Special levies can come with a shock factor that most homeowners dread…
... ››› more
One question I always hear investors ask is ‘What area must I invest in?'
Recently I've had many people ask whether newly developing areas such as Waterfall City and Dainfern are good areas to invest in. Others want to know if it's too late to invest in Cape Town's fastest growing areas.
But in my opinion it's not so much where you invest but what you invest in.
You see, currently all t... ››› more
When it comes to buying property, it's all about the details.
Buying property is likely to be the largest purchase you'll make in your life and this is why it's vital you spend time going through the paperwork side of things with a fine tooth comb.
So what should you pay attention to?
There are two documents to concentrate on first…
Examine a property’s title deed
All proper... ››› more
When it comes to buying a property, you may have your sights set on a particular house in a particular area.
But if you have to stretch yourself financially to get it, should you?
Let's take a closer look…
The financial side of buying property
Living in a large property with all the mod cons, and loads of room and space may be a dream of yours. But if you’re going to have to pu... ››› more
Investing in property is a great long-term investment. But for some investors, owning property isn't something they want to do.
So how can you benefit from the performance of the property market without having to buy property yourself? And how can you still secure an income?
Read on to find out…
The benefits of investing in REITs
Instead of directly investing in property, you coul... ››› more
If you want to start investing in property, you have a number of options.
You can look to buy existing properties, ones that need a bit of work done, properties coming up at auction and properties in new developments.
For the new property investor, new developments can be a good starting point.
Let's take a closer look…
The benefits of buying property in new developments
There ... ››› more
If you're looking for a way to grow your wealth over the long-term, property is well worth considering.
Investing in property to rent out can grow your wealth in a number of ways.
Read on to find out what these are…
Your investment property increases in value
Over the long-term, you should see the value of your property grow in value. This is thanks to an increase in demand, rise ... ››› more
When you invest in property, you can offset your expenses against the income you receive from it.
This means your money works even harder for you.
So what sort of things can you do to save on tax?
Read on to find out…
You can offset your bond against your rental income
If you have a bond on a property you invest in, you can offset the interest payments against the income you re... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.