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