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4 Reasons You Should Invest in Real Estate

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:

High ROI

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.