An Investment in Property

When you see a move, watch TV, switch on your radio and when you browse the web; it is more likely than not that you will encounter an intriguing advertisement about investment.

These advertisements are developed so well, that they intercept your thought space and redirect your train of thought. Automatically you find yourself inviting unwelcome thoughts about intimidating concepts like ‘the future’ and ‘retirement.’

The younger you are, the easier it is to shrug it off; but there comes a day in every person’s life where you have to pull out your telescope and point it towards the constellations of your financial future.

This might be quite difficult, considering that up to “42% of South Africans really hate dealing with their finances and that up to 38% of South Africans have no formal retirement savings” (as suggested by Liberty Life). Yet, when you consider the negative consequences of leaving these big financial decisions too late in life; it is better to overcome your squeamishness concerning your finances and doing something about it today. Yes, setting up a solid retirement plan is a golden step towards covering your bases for the day when your productivity expires; but essentially no one wants to put all their eggs in one basket.

Having alternative investments can define the comfort in which you spend the latter half of your life.

Because we live in an unpredictable economic climate, choosing an investment that won’t have you tossing and turning at night is essential.  Especially for those of us, who sat daydreaming whenever there was opportunity to learn more about investment, economy and all those hard to grasp concepts.  After all, what does the average person know about stock markets, inflation and the economy at large? Even a simple Google search is enough to leave you more confused about it than you were from the get go. You’d be correct in thinking that there has to be an easier way, because there is an easier way.

As a Capetonian and a South African, you are ideally situated to take advantage of an excellent investment opportunity that is relatively accessible to the average person.

This investment option goes by the name of ‘property’ and there is a legion of reasons, why you would be wise to find out more about how this can benefit you. Now, before you brush it off as an investment exclusively for the wealthy, thinking ‘I can’t afford to buy property now,’ read the following and decide if you can afford not to:

Why is buying property in South Africa a good idea?

In the South African property market, at the publication of this article, demand for property is greater than the supply: a trend that slows no sign of slowing down, owing to the fact that the country’s middle class is ever expanding. Available information from P3 Investment Group featured in the Economist shows us that the property market has increased by an average of 12% every year, for the past 40 years.

They say property in South Africa, is the best investment!

According to the P3 Investment Group news flash in the Economist. Find out why here: Property Investment in South Africa

In the last ten years alone, South Africa has established itself as one of the strongest housing markets globally (as identified by magazine, The Economist). With this in mind, it’s no surprise that South African property is a magnet for foreign investors. Add to the mix that South Africa boasts some of the superlative land registration systems, internationally and you’ll see why property in South Africa is a really sensible investment.

Things to consider, when you buy for the first time:

Can you afford it? Buying a property is a long term financial commitment. You need to assess the stability of your income. You will have to be prepared for unexpected expenses and you have to be willing to pay very close attention to your budget. All these factors will help you determine whether you can afford to brave the expense.

Once you’ve addressed that, you need to make sure that you explore all your loan options. There is a loan package that will be better than the first one you explored. So keep your ears on the ground and exhaust all your resources in finding the most beneficial financing option, that suits your specific situation.

It is advised that you tailor your loan, so that the repayments never exceed 30% of your income.

Be prepared for hidden costs like registration fees, transfer fees and other costs that are not always presented at inception. As an independent and a market outsider, there is a wealth of information that the average person may not know where to find and how to use. This is why you need someone experienced on your side. There are many Real Estate agencies that have the expertise to help you make an educated decision about property.

ShowMe Cape Town is home to many Real Estate companies in Cape Town. Browse our extensive property section, to find a trusted realtor near you.