Real Estate Investor Magazine South Africa December - January 2014

STRATEGIES BY KOOS DU TOIT Property Investment Myths D r Koos du Toit, CEO of P3 Investment Group, steps into the role of Myth Buster and reveals the truth about some of the most widely-held property investment myths. 1. The “experts” know best Don’t hand over your financial future to so-called “experts”, hoping they will deliver in spite of the poor investment results that are so prevalent. Take control of your financial future by investing your hard-earned money where you can see and touch it: in brick-and-mortar, using a tried-and-tested, proven system that requires very little time or effort, no qualifications or previous experience, and no lump sum investments or even large monthly contributions, and involves no exorbitant fees, while offering low risk and delivering solid returns. 2. Property investment is “too good to be true” Creating wealth through the buy-to-let property investment system is “not too good to be true” - it is simply a tried-and-tested system that allows investors to acquire buy-to-let investment properties, using bonds to finance the acquisition and using the rental income to cover the monthly property expenses, thereby building up a small but profitable portfolio of properties that generates an inflation-linked passive income for life, while also producing ongoing capital growth. 3. Property investment is only for the rich, educated, experienced You don’t need to be rich, because you can get a mortgage bond to buy a property and then use the tenant’s rental to pay the bond instalments. You also don’t need qualifications or experience, because buy-to-let property investment is based on a triedand-tested system, with built-in risk management and contingency measures. Like a franchise business, you simply have to implement the proven 26 system which has proven time and again to produce successful results. 4. Trusts are complex and expensive The truth is that, with the right expertise, trusts can be managed very efficiently and cost-effectively, and offer exceptional tax benefits. However, just like any other legal structure or entity, your trust should be set up and managed professionally. Fortunately, all the tools you need are readily available through professional property investment or ???????????????@?((?? ????????????????????)???????????????????????????????????????)?????????????????????????????????)???????????????????????????????????)????????????????????????????????????)??????????????????????????????????)?????????????????????????????????????)???????????????????????????????????????)????????????????????????????????????????????)????????????????????((??e?????????????????????????) ??????????????????????????????????)?????????????????????????????????q?????????t???+?q???????t??????????????????????????????)???????????????????????????????????????????)???????????????????????????????????????)?????????????????????????????????????????)?????L????????????L????????????????????????)??????????????Q?????????????????????????+?L??????????????????????????????????????)?????????????????????????????L???????????)?????????????((??A??????????????????????)????????????????????? ???????????????????????????????????????????)?????????????????????????????L???????????????()???????)???????????M?I????????%?????((????????????????????????????????????)?????????????????????????????????????????????????????????%???????????????????????)?????????????????????????????????????)?????????????????????????????((?!???????????????????) ??????????????????????????????????)????????????????????????????????????)???????????????????????????????Q???????)????????????????????????????????????????????????????????????????????????)???????????????????????????????????????)?????????????????????????????????????)???????????????????????????????????????)??????????????????????????????????????????)???????????????????????????((?????????????????????????)Q????????????????????????????????????????)?????????????????????????????????????)???????????????????????????????????)???????????????????????????M????????)??????????????????????????????????)??????????????????????????????????????)?????????????????????????????????????)?????????????????????????????????????????????)???????((????Q?????????????????????e?????)???????)]?????????????????????????????????????????)??????????????????????????????????)????????????????????????????????)???????????????????????????????????????)????????????????????%????????????????????)?????????????????????????????????????)?????????????????????????????????????????)??????????????????????????()IM=UI L()@?%??????????()??????????????((

Real Estate Investor Magazine South Africa December - January 2014 | Page 26