Updated: Oct 25, 2019
I’ve said it before and I’ll say it again: real estate is one of the most lucrative investments you can make.
In fact, it’s so profitable that it can help you avoid a 9-5 and build generational wealth. I’m living proof!
Last month, I talked about why millennials should invest in real estate. I mentioned factors like the need for a larger retirement fund and flexible schedule- which are huge draws for us millennials.
However, millennials aren’t the only ones that should be participating in real estate investment in South Africa. Don’t get me wrong- the younger the better!
The earlier your invest, the more money you will make.
But it’s really a good idea for everyone to invest in property in South Africa. Here are a few benefits of investing in real estate that appeal to anyone, regardless of age:
When you invest in property in South Africa, you can rest assured that you will see a high return on investment (ROI). This is because your money is always working in real estate.
If you put your money in a bank, it will just sit there. It might make some money in interest, but it will still have a relatively low ROI.
Did you know that real estate values always increase over time?
I know this may sound hard to believe given the fact that our property market fluctuates in value. It’s true that our economy has experienced- and will continue to experience- housing market crashes.
However, these dips in property value are brief and always followed by a sharp increase in property value.
This means that when you invest in property in South Africa, you will always make more than you invested- if you do it right.
Predictable passive income
One of the main reasons why real estate investment in South Africa is so lucrative is because it guarantees predictable passive income.
Say you purchase a flat for R300,000 and rent it out for R6000 per month. You find a tenant who signs a 12-month contract.
Now you know that you will be receiving R6000 into your account every month. You then have fees to pay off- rates, levies, parking, mortgage, etc.
However, after all of these fees are paid, you will still have money left over. That is your passive income cash flow.
Multiple streams of income
The average millionaire has seven streams of income.
Yes, you read that right. Seven. However, most people only have one. If you invest in property in South Africa, each property counts as an income stream. You could be earning like a millionaire in no time!
Build generational wealth
The economy is struggling. Many South Africans are unable to make ends meet. The cost of living is rising while salaries are remaining the same. Sadly, there is no sign of this trend slowing down or stopping.
So what does this mean? It means that our children and our grandchildren will need more money to live than we do.
Real estate investment can help you build generational wealth because it is sustainable.
Think about it. If you buy a property today, lease it out, and pay off the mortgage in time, you will own it outright in 20 years. That means that all of the lease income will go straight into your pocket!
If you pass that property on to your children, they will be able to continue earning passive income at an even higher rate than you did!
So, you want to know why you should invest in property in South Africa? While there are many reasons, they all point to one answer: because it will help you become financially independent.
Let me know in the comments below if you liked this article and if you would like to learn about even more reasons why you should invest in real estate.
Hi, I’m Ezra Rasethe, an entrepreneur, real estate investor and coach who facilitated millions of rands in investment opportunities in just 3 years. This year, I am launching my Real Estate Wealth Mentorship Program where I help 20 real estate investors start, grow and scale their businesses. Are you interested in becoming a real estate mogul? Click HERE to schedule a FREE mentorship call with me and gain access to exclusive resources.