Investing in Properties the Smart Way
Category Advice
If you're looking for a place to invest your money, buying property is one of the safest and most rewarding opportunities!
While purchasing property alone will accumulate value in the long-term, letting your property is the smartest way to see the most return on your investment.
Let's talk about some of the benefits of owning rental property:
Property appreciation
If you plan on keeping your property for more than 10 years, you will see a significant increase in the value of your property.
Depending on the area your property is situated in, the increase will of course differ. Based on past reflection, on average you can expect a 3,7% annual increase in property value in South Africa.
Mortgage and tax reduction
If you've bought wisely and can count on having tenants in your property, little to no money should be coming out of your pocket to pay the bond.
If you don't want to feel the extra mortgage every month, purchase property that requires monthly bond payments that break even with your tenants' monthly rental instalments.
Even if you have to pay the mortgage in the beginning, the longer you own the property, the more you will see it's increasing value and eventually you will be making a profit on your rental!
Seasonal renting
If you have the finances to invest in a holiday-house, letting it seasonally to tenants allows you to use the home when you need an easy getaway, and cover the expenses when you're not there. You can only win in that situation!
If you're in a position to take on extra property investment, you have every reason to take advantage of the letting opportunities! If you're ready for that next step, we would love to assist you in your journey!
Author: SApropety.com
