Estate Living Magazine Retirement Living - Issue 40 April 2019 | Page 58

L I v E
and research team, based in Hong Kong. They’re the ones who will
identify markets that meet our investment criteria, which is focused
primarily on:
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transparent legal and tax frameworks
political and economic stability
low entry and exit costs
ease of access to finance for foreign investors.
From there they will identify pockets of value within those markets,
looking for:
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fundamental supply and demand imbalance
historical and forecast sales and rental data
new regeneration projects that will drive the local economy,
and increase future house price growth and rental yields
infrastructure projects that will enhance property values by
reducing or improving commuting times to key employment
nodes.
Once we have identified the market and the pocket of value, we
would approach property developers. We work only with reputable
S M A R T
property developers who we know, and who have demonstrably
strong track records of delivering developments on time, on
budget and in line with what they set out to deliver. With regard to
the specific projects, these will ultimately be selected based on all
of the above, plus their individual fundamentals, such as purchase
price, average price per square metre, and projected rental yields.
Obviously, we also take into account the general look and feel of the
development.
Gold and other precious metals
A less talked about investment option is gold and other precious
metals such as silver and platinum. You can purchase shares in funds
that track these indexes, or even buy Kruger Rands that are kept for
you by the investment company you use. You can, of course, buy
actual tangible Kruger Rands, other coins, or metal bullion bars from
dealers such as Metcon. Seeing a physical investment and knowing
that it is easily traded, and can literally be carried around, can add to
your peace of mind.
Some things to consider are that bullion bars attract VAT whereas
Kruger Rands do not. Also, bullion dealers need to make a living,
so generally you would buy at around 10% higher than the daily
listed price and sell at around 10% lower. What this means is that
you should hold on to your investments for a few years to make up
for the initial ‘loss’.
Bottom line
Investing for your retirement isn’t simply a case of contributing
a small percentage of your salary to a fund each month. Rather
overcompensate, and diversify your investments with a combination
of tax-efficient investments to ensure that you’re not one of the
poor statistics in South Africa. It’s never too late to start focusing on
funding your retirement, and assessing your finances holistically to
better understand your current position.
Brendan Dale