HSBC’s latest Expat Explorer report for 2017 ranks the world’s best countries for expats to settle in, offering the highest quality of life, and the safest and richest environment for the families.
For the third year in a row, Singapore topped the list of 46 countries that qualified for the ranking, carrying the overall highest score for expat quality of life. While the Asian nation did not top the ranking in any of three main indices (for economics, experience and family), it still earned the highest score.
Behind Singapore was Norway, followed by New Zealand, Germany and the Netherlands rounding out the top five.
The economics category ranks each country using a score that summarises expats’ views on things like personal finance, the local economy and working life, while the experience category looks at things like lifestyle, the people in new countries and what it takes to get set up.
The final category – family – focuses on education and other quality of life factors that would affect the well-being of having raising a family in the new country.
South Africa ranked 33rd out of 46 countries, relatively low down on the list, with its best indicator being in the ‘family’ field (16th), while economics was the poorest indicator (41st). Despite its lower ranking, South Africa has emerged as one of the hottest property markets for expats, the report showed.
Globally, expats have an average gross personal income each year of just under US$100,000, HSBC said.
They earn on average 25% more than they did at home, and more than one in ten expats (14%) say their income has doubled since moving abroad.
According to HSBC, many expats take with them their financial attitudes to investing, which highlights property ownership as a valuable investment – and with the appetite for international
property ownership growing, 62% of expats own a property somewhere in the world, with 9% owning bricks and mortar in both their home and host country.
Three quarters (75%) of British nationals overseas own a property, influenced by a strong sense of the importance of home ownership in the UK culture.
This puts British expats third in the expat property ownership rankings (just behind Sri Lankans and Egyptians), closely followed by Indian expats at 74%, the banking group said.
Three quarters (73%) of expats in Norway own a property, making it the country with the highest rate of expat property ownership out of all countries measured. This is followed by France (69%), Portugal (64%), New Zealand (63%) and South Africa (61%).
The value of some Cape Town residential property has nearly doubled in the last seven years with, in many cases, a 10.5% per annum average increase in value. Some people, says Rowan Alexander, director of Alexander Swart Property, are now saying that Cape Town homes are overpriced.
However, he says, those coming from the UK or Europe to buy a suburban house here are staggered at how inexpensive our properties still are: on the current exchange rates, they are often able to get homes in Cape Town at 15-20% of what they would pay back home.
“Looking at this matter in a worldwide context,” says Alexander, “one has to realise that Europe and the UK have had a highly active property market for well over 500 years whereas our property market is less than 100 years old. It is so young that we have only recently begun experiencing what the First World has witnessed for centuries, i.e. greatly increased values caused by rapid influxes of people to the urban areas.
“I know that South Africa’s big cities have seen this trend for some time but we are still in fact in the early stages of the densification that has led to the central precincts of the big cities – New York, London, Paris, Berlin, etc. – reaching astronomical price levels, with concomitant spinoffs for the suburbs surrounding them.”
Densification of peripheral, suburban areas
Alexander believes that much South African property is undervalued because, he says, if you accept that our major cities will inevitably follow the same trends as those elsewhere, they will continue to densify and although this may cause slum areas in certain precincts, in others CBD property values will rise exponentially – and this, in turn, will lead to further densification of the peripheral and suburban areas.
In Cape Town, says Alexander, the city council already encourages the densification of those suburbs lying within relatively easy commuting distance of the CBD – and certain developers, such as Rawsons, have been able to cash in on this and build multi-unit apartment blocks where previously there were only houses on separate plots.
“In the long run, the price trend will continue to rise upwards,” says Alexander, “because of increased demand for urban and peri-urban space and ongoing densification. We cannot simply spread out interminably: we will continue to consolidate and this consolidation will make all those areas affected and those near to them more and more valuable.”
This article appeared on www.bizcommunity.com
Young upwardly mobile property buyers are now a force in the property market, especially if they are living and working overseas most of the time.
Discussing this, Tony Clarke, MD of Rawson Properties, said that this trend to gain momentum despite the new strength of the rand and the slower capital growth predicted for property.
“I have recently been in touch with two adventurous young South Africans who did a two year stint in Afghanistan where they earned in the region of R50k per month – far more than either ever earned in SA.
“One came home and blew most of his savings on a R400k car. The other, on my advice, put the same amount into buying a flat in Gordon’s Bay and an old, cheapie car.
“The two are likely to return to Afghanistan in two years’ time. By then the expensive car, if sold, will have lost almost 50% of its value, but the cheap car will probably sell at very close to what was paid for it.
“The Gordon’s Bay flat is producing a rental of R48k per annum, which will rise at 10% annually on a compound basis. It will also appreciate at 8% per annum, giving it a value in five years of R590k (47% up on the purchase price). By then, too, it will have generated an income of R360k.
“Which of the two young men has shown the most investment sense?”
Clarke has seven pieces of advice for other upwardly mobile people contemplating property as an investment, all of which, he said, has been tried and tested in the market and in his own career.
“First, accept that property is always a long-term investment with ups and downs. If you are out for a quick buck, you will not find it in property.
“Second, set yourself the goal of building up a property portfolio which you expand steadily. Do not sell your investment property, even to buy another.
“Third, do not rush this process: Avoid the temptation of buying many highly bonded properties. Rather buy one and gear it correctly before you move on to the next purchase. Later, as your income increases, it may be possible to buy more than one property at a time.
“Fourth, diversify your portfolio: Try to invest in both freehold and sectional title residential property, as well as small commercial and industrial units. Try also to avoid being in one area. The markets fluctuate: if you are spread wide, the rises and falls will be cushioned.
“Fifth, accept that your own home is part of your portfolio. Too often, as salaries increase, so does the desire for a bigger and better home, resulting in huge bond repayments having to be paid. Rather have a moderate home and save by having a small bond here and use the spare cash to buy elsewhere where you will earn rent.
“Sixth, unless you face financial disaster, do not sell. The ancillary costs of buying and selling are high – you will have capital gains tax (CGT), agent’s fees, transfer and conveyancer's fees – all of which will eat into your profit.
“Seventh, focus on income rather than capital growth. The more cash you can actually collect monthly, the better your chances will be of buying elsewhere. Focus on the cash and the capital growth will look after itself.
The demand for residential rental accommodation in central Rosebank is currently outstripping supply. This is according to Chris Renecle, MD of Renprop, who notes that this unmatched demand is for both short and long stay leases as well as furnished and unfurnished apartments.
“As a result, rental prices are increasing too,” he says. The Vantage - Renprop’s first residential apartment development in the area, undertaken in partnership with Grapnel Property Group – is a case in point. The Vantage is now fully occupied, and as a result, the rental prices have increased.
The average monthly rental price for a two-bedroom, two-bathroom apartment at The Vantage currently sits at around the R18 000 mark. “This means that purchasers at The Vantage who are renting out their units are achieving a gross yield of between 9%-10%, which is excellent for residential rentals,” says Renecle.
Owners at The Tyrwhitt, which is the second Renprop and Grapnel Property Group development in the area, are also expected to achieve excellent rental returns based on the current high level of demand.
Renecle says investors in the node are seeing great returns on one and two-bedroom apartments, both in rental yields as well as capital growth. “Around 16% of the units at The Vantage have been resold at prices of up to 30% more than the original launch price,” he says.
There are only a select number of units still available at The Tyrwhitt, which Renecle says offers the best value for money in Rosebank with apartments priced at around
R35 000/square metre. The Tyrwhitt consists of mainly one- and two-bedroom configurations in line with investor demand.
Renecle believes that the strong demand for residential accommodation in Rosebank is due to its growing commercial district as well as its excellent position between the Johannesburg and Sandton CBD. Rosebank also boasts a wide range of amenities as well as public transport. “The Gautrain station is within walking distance of The Vantage and The Tyrwhitt as are the numerous shopping centres, restaurants and coffee shops,” says Renecle. “The tree-lined avenues and dedicated pedestrian walkways give Rosebank a village-like feel in the heart of a cosmopolitan metropolis.”
Renecle expects the strong demand for residential accommodation, particularly rental accommodation, in the area to continue for the foreseeable future.
“From our experience, updating your kitchen and bathroom can help to sell your house faster and potentially add thousands of rands onto the selling price,” says Ryk Neethling of Val de Vie, the award-winning lifestyle development in the Paarl-Franschhoek Valley.
While decluttering, repainting and completing minor repairs before prospective buyers take a look can create a stronger first impression; it’s updating your home’s most functional and ‘lived in’ spaces that is often the clincher.
“Open plan living has meant that the kitchen is now the anchor from which the entire house finds its direction and look,” says Philip Richards, brand director of blu_line. “A modern kitchen that boasts the latest functionality, materials and Caesarstone surfaces will therefore ensure that your home attracts the best buyers, at the right price”.
The most valuable section of the house, the kitchen is worth the most per square metre and can be the deciding factor when buyers are unsure of a purchase. The good news for homeowners on a budget is that while it might not be feasible to remodel your kitchen completely, you can refresh its look and feel by respraying the cabinet doors and upgrading the plumbing fixtures. Upgrading your countertops and backsplashes to genuine Caesarstone quartz surfaces will add that wow factor, but will also add serious value to your property too.
“It’s a well-known fact that kitchens and bathrooms sell homes. Using luxurious products like Caesarstone in both your kitchen and bathroom is a great way to add value and give it the wow factor that will grab buyers’ attention. In fact, many real estate agents make a point of including Caesarstone features in their property descriptions as a key selling factor.” says Simon Bray, CEO of Private Property.
The bathroom is the second most impactful space in your home when it comes to influencing a sale. An impractical or outdated design, old or faulty sanitary ware and stains or general grime will create a negative impression with potential buyers that will be difficult to shake. The most personal of spaces, your show-house visitors’ experience of your bathrooms is going to deeply affect how they feel about your house overall.
Speaking on behalf of Nedbank, Tim Akinnusi, head of Sales and Client Management at Nedbank Home Loans says, “It is important for home owners to look at changes and upgrades that will help increase the value of their home. Look at the functional areas of the house as those are the key rooms that will attract potential buyers when it’s time to sell your home. Some advice would be to look at future trends and incorporating energy efficient products to your home”.
“Homeowners should remember that their home’s materiality is directly correlated with its intrinsic value and resale potential,” says Caesarstone’s marketing director, Trevor King. “Choosing top quality, hygienic finishes like Caesarstone that also retain their design longevity, helps to position your house as a good investment in the minds of estate agents and buyers alike”.
All Caesarstone surfaces come with a lifetime warranty*. Visit www.caesarstone.co.za for exciting new colour palette additions from May.
Accurate property value estimation is often considered an art as much as it is a science – it’s not always easy to pin down that mysterious “x factor” with hard statistics.
Intangible things like ambiance are notoriously difficult to quantify, but there are a few hard and fast factors that are guaranteed to influence the value of any home. Tony Clarke, Managing Director of the Rawson Property Group, takes us through his top five.
Location, location, location! It’s a cliché because it’s true – location is the number one factor that determines your home’s value – but there is a little more to it than just the neighbourhood you’re in.
“Each suburb has its own target market and price range,” says Clarke, “which dictates the upper and lower limits of property values in the area. Within this price band, however, there are often certain roads or blocks that achieve higher-than-average prices.”
According to Clarke, this phenomenon can be attributed to several factors.
“Typically, these pockets of more expensive properties will be positioned in the most convenient, picturesque or sought-after parts of the neighbourhood. They may have better views, better orientation, or better security than those around them, and because they attract a more affluent buyer, they are often more modern and well maintained.”
Size counts when it comes to property, and the more spacious your home, the more you can expect buyers to pay for it.
“With densification affecting most areas these days, space comes at a premium,” says Clarke, “and buyers are definitely willing to pay more for a bit of extra breathing room. Space requirements are relative, however, and should be viewed within the context of your neighbourhood.”
Clarke reveals that a huge property in an area that typically attracts first-time buyers, students, or those looking for a lock-up-and-go lifestyle, may struggle to sell to anyone other than a developer. On the other hand, a property that offers a similar lifestyle to its neighbours, but with more privacy and space, is likely to see a lot of interest from private buyers, and have more room to negotiate a favourable sales price as a result.
Rooms and amenities
No matter how big or small, a lot of a property’s value comes from the breakdown of rooms and facilities it offers. Bedrooms, bathrooms and garages are naturally the top influencers, here, but outdoor entertainment areas, built-in braais and work-from-home spaces are also in increasingly high demand.
“There has definitely been a shift towards lifestyle features over the last decade,” says Clarke, “and these can add significant value to a property if done well.”
“As for the number of rooms a home offers, more is only better up to a certain point. Very few buyers are looking for more than four bedrooms these days, and two or three bathrooms is usually considered adequate for everything but mid-to high-end luxury homes. Having dramatically more than this might appeal to some buyers, but won’t necessarily add proportional value to your home.”
Space and flow
Architectural trends, like any fashions, evolve and change with time, and keeping up to date with these as far as possible definitely impacts the value of your property.
“Currently, open-plan living, particular with regards to kitchens, dining rooms and entertainment areas, is a big factor in property value,” says Clarke. “Old fashioned homes with separate rooms and enclosed spaces don’t do too well when it’s time to sell.”
Technology affects all aspects of our lives, and our properties are far from exempt from this trend.
“Having a tech-friendly home is becoming more and more important,” says Clarke, “and simple things like built in charger points and thoughtful power outlet positioning can certainly increase the desirability – and price – of a home. Home automation tools, particularly for security systems, are also very popular, as are eco-friendly value-adds like solar heating or power generation and grey-water recycling systems.”
By assessing these five factors, one should get an idea of how favourably your home will be received on the market, but it’s always advisable to contact an experienced real estate agent for an accurate estimation of your property’s true value.
As seen on myproperty.co.za
At the moment, there are no restrictions on foreigners buying property in South Africa, unless they are illegal immigrants.
At the moment, there are no restrictions on foreigners buying property in South Africa, unless they are illegal immigrants. “There has been some confusion about this,” says the Rawson Property Group's Managing Director Tony Clarke, “because legislation currently under consideration may in the future impose some limits on foreign ownership of farms and agricultural land.”“There has been some confusion about this,” says the Rawson Property Group's Managing Director Tony Clarke, “because legislation currently under consideration may in the future impose some limits on foreign ownership of farms and agricultural land.”
However, he says there are no plans to change the current situation with regards to residential or commercial property, although actual purchase processes vary from country to country, so buyers from outside SA are advised to seek the assistance of a reputable real estate group to ensure the transaction goes smoothly.
Meanwhile, Clarke says the most important things that non-resident buyers need to know are the following:
1. In SA all contracts to buy property need to be in writing. Such contracts usually take the form of an Offer to Purchase or an Agreement of Sale and are legally binding once signed by the buyer and seller. Contracts can be signed overseas before a Notary Public or at the SA embassy in certain countries, but non-resident buyers usually find it easier and cheaper to give a trusted representative in SA power of attorney to sign the necessary documents on their behalf.
2. Non-residents who are purchasing property in the name of a company or other legal entity rather than in their own names will first have to register that entity in SA and appoint a local public officer.
3. Non-residents who are intending to stay in their SA property for long periods will need to comply with the Immigration Act and may need to acquire a residence permit.
4. Non-residents who are bringing funds into SA to pay for their property purchase should deposit these into a trusted account of the representative who is handling the transfer of the property into their name. The representatuve will then disburse them correctly on the day the transfer is registered. When depositing funds from abroad into any SA bank account, non-residents should ensure that they are issued with a “deal receipt” which they will need if ever they wish to repatriate their funds and/or any profit on the sale of the property.
5. Foreigners who are not residents in SA and do not have a valid work permit are only allowed to borrow an amount equal to the amount of money they bring into the country in order to finance a property purchase. Usually this means that they can only qualify for an SA home loan for a maximum of 50% of the purchase price. To do so, they will also need to provide proof of identity, income and their address in compliance with international practices.
6. If they need a local bank account to service instalments on a home loan or perhaps to receive rental income from the property they have bought, non-residents can open one, provided once again that they are able to produce the correct documentation. They should note, however, that any deposit made into this account in SA will require the approval of the Reserve Bank, because non-residents are not allowed to generate any income in SA except for rentals and the interest on investments such as shares.
7. Once the financing details have been finalised, the transfer attorney can go ahead with getting the property registered in the new owner’s name at the local Deeds Office, which keeps the record of all property titles in a particular area. This process generally takes six to eight weeks, as the attorney first needs to obtain municipal and tax clearance certificates, cancellation figures for any existing mortgage bonds over the property and various other documents. The costs of this work and preparation of the legal documents required to effect transfer of the property title registration from the seller to the buyer is usually for the buyer’s account, although the seller usually appoints the transferring attorney. The seller, on the other hand, is liable to pay any commission due to the estate agent.
8. Transfer duty (tax) is also payable by the buyer on all pre-owned properties in SA valued at more than R750 000, on an upward sliding scale, with the maximum calculation being R85 000 plus 11% of value for property prices at R2.25 million and more. Newly-built properties, on the other hand, usually attract value-added tax (VAT) at 14% of value, included in the sale price.
9. Occupation of the property is usually given on the date that the transfer of ownership is registered, although alternative arrangements can be made provided they are put in writing and again signed by both buyer and seller. Occupational rental may be payable by whichever party occupies the property while it is registered in the other party’s name.
10. Non-residents who decide to sell their property in SA at a later stage can repatriate all funds invested plus any profit made on the sale, less Capital Gains Tax. The repatriation will need to be approved by the Reserve Bank and they will need to produce the original agreement of sale, the transfer attorney’s final account and any deal receipts they were given when they brought funds into SA.
The information in this article is courtesy of www.property24.com
South Africa has one of the most sophisticated and accurate systems of property registration in the world.
All property information records are kept at the Surveyor General’s Office in the form of a SG diagram which details the exact location and extent of property.
A Title Deed is assigned to every property. It records all limitations on transferability and use of the property such as bonds and servitudes and is held by the Deeds Office.
An Estate Agent or the public can call for this information if required.
Most property in SA is owned on the basis of Freehold Title or Sectional Title. Freehold Title confers full title to the land and improvements on the land and Sectional Title confers full title of the demarcated Section of a building.
Your quick guide to the property transfer processMost property sales in South Africa are handled by registered Estate Agents who will assist in preparing the Offer to Purchase and will shepherd the progress of the transfer and registration process. It is also legal for owners to buy and sell property privately.
How it Happens – Step by Step
Should a purchaser wish to form a new Company or Close Corporation to be the transferee, he will have to sign the Offer to Purchase on behalf of the legal entity to be formed. Once the Company/Close Corporation has been formed, the directors will have to ratify the Deed of Sale.
Please note that it is not possible to sign an Offer to Purchase on behalf of a Trust to be formed. The Trust must be in existence with a Letter of Authority from the Master of the High Court before it can purchase, or make an offer to purchase, a property
If a purchaser wants to nominate another person as the transferee, the name and address of the nominee must be provided in writing on the same calendar day that the sale was entered into, i.e, by midnight on the date of sale. Should the nomination only occur on the next day, double transfer duty will be payable.
The information in this article is courtesy of www.showme.co.za
When deciding on investing in property for the first time, there a few key elements that investors should take into consideration - such as whether they are investment-ready and well informed on all the available options.
This is according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who says buying a property is a major commitment that should be carefully evaluated in terms of your life plans and financial situation - both currently and in the future.
He says as a first-time property investor, it is vital to be informed and ask the right questions, such as when, where, why and how to invest in your first property.
Goslett shares some guidelines as to how first-time investors can find the answers to these questions:
1. When should you invest?
According to Goslett, the short answer to this question is as soon as you can afford to. While it is important to watch the market and buy at the right time, it is never too early to get into the property market.
He says property investors should take the necessary time required to ensure that they make an educated decision, assessing whether they can afford to make the necessary financial commitments.
To make an accurate assessment of this, it is advisable to use the resources available. For example, banks and bond originators will be able to give investors estimated repayment figures based on bond requirements.
Goslett says monthly bond repayments should not exceed more than 30% of the buyer’s total expenses, and most buyers will be required to put down a deposit of between 10% and 30% of the purchase price of the property before they are approved for finance.
It is important to keep in mind that it is not just the bond repayments that will need to be paid. There are a number of other costs involved in a property transaction that can add up to a substantial amount. These fees include transfer duties, Deed Office fees and levies, municipal rates, bank charges, bond initiation fees, home insurance costs, the monthly administration fee charged by the bank, moving costs and the cost of maintaining the property.
It is essential to include all of these aspects into the calculation when assessing affordability.
2. Where should you invest?
According to Goslett, location is of the utmost importance, and in terms of investment, can never be stressed enough. Location is vital because being in the right area and position will ensure a good resale value and return on your investment, he says.
When looking into an area, consider proximity to amenities such as schools and shopping centres.
Online property search portals can be used to find statistics on areas and values of properties. Estate agents can provide you with a comparative market analysis, which will give you thorough knowledge of the property sales dynamics of a certain area, he says.
3. Why invest?
Property remains a solid asset class in which to invest. Goslett says buying property is a huge step towards financial security and growth, and is a great way to invest in your future.
“Property is far less volatile than the equity or share markets and, unlike other investment options, property investors have complete control over their asset.”
Generally, Goslett says property prices tend to increase fairly consistently over time, which makes it a lot easier to gauge the estimated return on investment much more accurately than any other investment class. He says property owners will not have to sleep with one eye glued to the stock market and have to sell the minute the market is at a high.
He says the other beauty about property is that it is the only asset class that can be financed and leveraged. In layman’s terms this means that an investor can buy property with someone else’s money.
If an investor can prove affordability and meet the loan repayment conditions, property is practically the only investment option that banks are willing to finance.
This is because they know that if managed correctly, the money they lend to individuals is being invested in an appreciating asset. If you are looking for an investment that either keeps up with inflation or outstrips it in terms of growth over the long term, then property is for you.
4. How to invest
Save, save, save. Wherever possible, an investor should put aside as much money as they can.
Goslett says the larger the deposit, the lower the repayments and the easier it is to buy a property. It is also vital to have as much disposable income as possible, as this will have a bearing on whether the bond is approved or not.
Paying off any existing debt as soon as possible will improve the investor’s disposable income along with their credit rating. Maintaining a clean credit record will be invaluable when being assessed for bond approval.
Goslett says once the investor has the required deposit and decided on the type of property that will suit their life stage, working with a mortgage originator will ensure that the bond application is a smooth, hassle-free process.
"When you are ready to take the next step, it is important to partner with a reputable estate agency to help source the right property," he says.
The information in this article is courtesy of www.property24.com
In the South African property sector, there is a growing interest in buy-to-let property investment right now – and this, says Tony Clarke, Managing Director of the Rawson Property Group, makes good sense because the advantages of this type of investment far outweigh its disadvantages.
Asked to list the benefits as he sees them, Clarke mentioned that:
1. Buy-to-let properties can often be – and usually are – bought with a bank loan. This means that the investor’s rent and capital gains are based, not on the amount he has paid out to date, but on the total value of the property. His gains, therefore, are made on money that is, in reality, not yet his. By way of contrast stock exchange shares and money market products usually require full payment upfront – and are more subject to fluctuations.
2. Buy-to-let properties almost always give satisfactory capital growth in the long term because housing, being a primary human need, is always in demand and there are usually stock shortages. This is an asset class which, although affected by economic swings, tends to be more resilient than others. Over any 10 year period in South Africa’s history, a minimum growth of at least 45% has been achieved.
The disadvantages to this type of investment are that, although this has not been the case in South Africa for some time now and no one expects this scenario to occur in the foreseeable future, there can be periods where tenants are in short supply and, if found, are able to negotiate ultra-low rents.
Another disadvantage is that, even in good periods, it is possible for the investor to find that he has ended up with an unreliable tenant. In these circumstances, the investor and his agent may well have to resort to expensive, time consuming legal action to obtain a satisfactory outcome – possibly even an eviction. During these drawn out proceedings, it’s probable that he will have to find his monthly mortgage bond payments without the help of regular rent income.
Unsatisfactory tenants have all too often also been known to damage properties - and reclaiming the cost of this usually proves difficult.
Buy-to-let investments, says Clarke, have to be viewed as long-term and, by the same token, investors should choose their properties on their ability to attract tenants five, ten or fifteen years down the line. Areas that are popular now, but showing signs of declining, should be avoided.
“In view of the supreme importance of location,” said Clarke, “it’s essential to identify the trends affecting the various areas, if necessary paying higher than originally budgeted to be in an up and coming area.”
“In addition,” he says, “unless the investor has in-depth property experience, it will usually pay to employ a professional agent who is remunerated with a commission of 10 or 12% of the rent each month. This relieves the landlord of on-going rent collection, tenant management, rates, services, tax payments and other possibly irksome duties. Most importantly, however, it also means that the accepted tenants’ previous leasing, credit and employment records would have been carefully checked through special organisations set up for this work. This, in turn, greatly reduces the chances of having a fly-by-night or non-paying tenant.
Another apparent drawback of property investments, one which seems to be a negative but in fact is a positive, is that property can take time to sell. Many other investments are often easier to withdraw from and enable the investor to realise quick cash assets. By contrast, the property seller has to market his property, find a buyer and wait for transfer before getting his hands on the cash. This, however, means that the property investor tends to see his investment as a forced saving and does not react too quickly to fluctuations, many of which turn out to be temporary.
Clarke said that the Rawson Property Group and Rawson Developers have buy-to-let clients who have built up substantial property portfolios which often allow them to retire early.
“One can learn a great deal from such people,” said Clarke. “The mere fact that so many of them have been successful testifies to the truth that this type of investment is suited to the man-in-the-street because it is very difficult to hide awkward, negative aspects in property – as is often the case when one is investing in less transparent asset classes where one’s involvement is less hands on.”
“In closing, property may not seem to be the best vehicle for the investor’s money but he can rest assured that over the long term it is by far the safest asset class and is capable of giving excellent returns.”
The information in this article is courtesy of www.rawson.co.za