Real Estate Investor Magazine South Africa August/September 2019 | Page 46

CYPRUS
SPONSORED
Financial freedom is not
about being absurdly rich
S
hould it be a goal to get rich quickly? Is there a quick fix
to get rich quickly? We take a closer look at the poten-
tial of property investment as a solution to increasing
wealth.
International legal and marketing Director of Quality Group,
Costas Souris explains that one can become richer through
logical property investment. “I prefer to think being rich is
financial freedom. it is the ability to live the lifestyle you desire
without having to work or rely on anyone else for money,” he
said.
Investing in property is a tried and tested method to making
money. Property investment allows one to minimize the risks
and maintain a stable return. The analogy of the tortoise and
the rabbit racing is aptly suited to property investment. The
tortoise is slow and steady but always wins. In a similar aspect,
property investment provides ‘steady’ returns. The tortoise is
slow and steady but always wins.
The above diagram illustrates a concept developed by world
renowned researcher and behaviour shaper, Stephen Covey.
This concept will be used to unpack how investor behaviour
determines financial freedom.
It is advisable to understand that property investment
decisions must me made on the basis that global or local
politics, the economy, interest rates and other environmental
issues are beyond an investors control. Sustainable property
investment decisions must work within these parameters.
Investors can influence others and the immediate
environment, for example; keeping the pavements clean to
maximise the appeal of the property for rent. The investor has
direct control over a few factors including the budget for the
investment, the property location (country and area), the ideal
tenant profile and the rental currency.
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AUGUST/SEPTEMBER 2019 SA Real Estate Investor Magazine
Rental currency has become of paramount importance in an
emerging country such as South Africa. It is all about purchasing
power as imported goods and service costs are spiralling
as they are US dollar based. It is advisable for an investor to
analyse what they spend their money on. For example, bread
is produced from farmer to mill to bakery and finally to the
retailer. A simple item such as bread must include the cost of
transportation, as fuel is imported. Another example is clothing;
manufactured overseas and shipped, it includes import duty
and transport costs.
The majority of what consumers purchase and use is from
abroad. This means that consumers must make their money
grow faster than the local inflation rate and faster than the
precarious/fragile rand. Currently, the rand has depreciated by
an average of USD 7% per annum, over the past 40 years. The
solution to this is to invest in hard currency rentals. This strategy
will retain ones purchasing power and lifestyle standards.
An investors road to financial freedom is dependent on their
behaviour. Revisiting the rabbit and tortoise analogy, slow
and steady investment in property leads to an ever increasing
passive income but in hard currency.
VISIT www.qualitygroupsa.com
SOURCES Quality Group