FINANCE
Many investors are surprised to discover just how simple, easy and affordable it is to create passive income with a rental or buy-to-let property. You do not need prior knowledge or qualifications, you do not need a lump sum investment or even substantial monthly contributions, nor do you need much time or effort to invest in buy-to-let property.
Knowledge and qualifications Far removed from complex investment options, shrouded in jargon, buy-to-let property investment is simple and streamlined. You don’ t need to understand economics, markets or financial jargon. You don’ t need to get a qualification or undergo expensive training.
You simply acquire a property and rent it out to a tenant. Provided you choose a good property in a good area with solid rental demand, and maintain the property over the years, this property will continue to produce an ongoing, passive, inflation-linked rental income year after year, as well as steady capital growth over the long term.
You don’ t need a lump sum to invest in a buyto-let property. If you want to buy a buy-to-let property valued at R500,000, you don’ t need R500,000 in hard cash. You can borrow money from the bank in the form of a home loan to buy the property.
Of course, you have to repay the bond every month. But you also don’ t need substantial monthly contributions because a buy-to-let property is generating an income each month – the rental. And it is this immediate rental income that allows ordinary people to invest in property without hard cash, because the rental income from a well-chosen property will cover most – if not all – of the monthly bond repayments and other costs involved with owning and renting a property.
Passive Income
The easiest way
BY GERT VAN STADEN
Time and effort Building a portfolio of buy-to-let investment properties requires very little time and effort if a simple tried-and-tested step-by-step system, such as the P3 Investment System is implemented. In such a system, all the procedures, resources and tools are already in place- you can literally start building a passive income from day one by simply implementing the tried-and-tested property investment system.
The shortest path Ordinary, salary-earning South Africans can acquire a buy-to-let property with the bank’ s money, and then use the rental income paid by the tenant to pay the bank each month. Once the bond is paid off – and it is possible to do so within as little as 11 years- you will have a property worth far more than the purchase price, thanks to capital appreciation, as well as an ongoing monthly passive income in the form of rental that increases in line with inflation year after year. And this dual return is achieved without prior knowledge or qualifications, without a lump sum investment or substantial monthly contributions and without much time and effort.
This is exactly what the 2500 members of the P3 Investment Group are doing: implementing the tried-and-tested P3 Investment System, to build up small but highly profitable portfolios of buy-to-let properties, which produces ongoing, inflation-linked passive income for life and beyond, and also – as a bonus – generates steady ongoing capital growth.
RESOURCES
P3 Investment Group
www. reimag. co. za AUGUST 2016 SA Real Estate Investor 25