Real Estate Investor Magazine South Africa August 2018 | Page 5

EDITORIAL VIEW
Property investment
an expression
of financial
independence
We know that land reform and affordable
property ownership is necessary for the
future well being of South Africans but it
has to be managed properly. In fact, if done
really well it could be a game changer for
many South Africans who currently don’t
own or cannot afford home ownership.
What we need is widespread property
education ownership initiatives in part-
nership with government, private sector,
corporates and role players that can create
housing and property ownership for many
alongside creating much needed employ-
ment.
According to the latest FNB House Price
Index, property prices in South Africa are,
in reality, currently 90,8% higher than they
were in 2001. In simple terms, this means
that the property buyer who bought a R1
million property with a R100 000 deposit
in 2001 would have made a return of al-
most 1000% on that initial investment.
This means that the younger you are when
you buy, the more chance you have of
achieving such long-term returns. Wider
property ownership provides opportunity
for wealth accumulation is good for the
economy and provides social benefits be-
yond purely financial returns.
William Howard Taft, the 27th President
of the United States said, “Next to the
right of liberty, the right of property is
the most important individual right guar-
anteed by the Constitution and the one
which, united with that of personal lib-
erty, has contributed more to the growth
of civilization than any other institution
established by the human race.” Property
ownership really matters! Property ownership is, after all, one of the
strongest expressions of financial indepen-
dence. It provides a sense of empowerment
and lends a level personal security that is
unmatched by any other investment en-
deavors. Let’s celebrate women’s month
together with these brilliant contributors.
My recent interview with Robert Kiyo-
saki, author of the number one personal
finance book of all time, ‘Rich Dad, Poor
Dad’, says that you need to study real
estate to become good at utilizing it for
wealth creation. There are always winners
and learners in the game of property in-
vestment. The safest investment is still in
yourself. Your personal education and de-
velopment is your biggest asset. NEALE PETERSEN
FOUNDER/PUBLISHER
“With August being Women’s Month in
South Africa, there is no better time for
women to think about buying homes of
their own or becoming property inves-
tors,” says Gerhard Kotzé, Managing Di-
rector of RealNet. “Women also outnum-
ber men when it comes to single buyers,
accounting for an estimated 10% of total
home purchases compared to the 7% of
purchases made by single men. We really
hope to see this trend accelerating now as
more women in SA move into top gov-
ernment and corporate positions, and set
up their own successful businesses, than
ever before. In this issue we are featuring
some of these women - movers and shak-
ers who have made a significant impact on
the property industry.
Successful investing
FABRIZO
MOREIRA
“
The business side of real
estate investing is fraught
with risk. Unlike purchasing
mutual funds or savings
bonds, with real estate, you
can lose money; this is one
of the reasons that seasoned
real estate investors caution
neophytes never to get too
emotional about a property
and always be willing to
walk away
“
T
he expropriation of land with-
out compensation is causing
consternation amongst local
property buyers and investors. Why is
the question of land ownership so emo-
tional?
SA Real Estate Investor Magazine AUGUST/SEPTEMBER 2018
3