Real Estate Investor Magazine South Africa December - January 2014 | Page 44

MY STORY

BY ANGELIQUE DUVENAGE

I Bet on Buy-To-Let
And won financial security!

I

was born in Durban and raised by a
ha rdwork i ng, si ngle mot her. A f ter
matriculating, I joined the public sector
continuing the life lessons I had been raised on, by
getting a job, working hard and saving money. But I
wanted more than just enough money to get by and
thought there had to be another way to create real
wealth. In 2000, I resigned and dedicated all my
time to finding out how the rich became wealthy.
During my research into different income streams
I came across the REIMAG March 2008 issue,
which sparked my interest in income-generating
properties, giving me the opportunity to learn from
other successful master investors, like Gordon
McKay ‘the Streetwise Millionaire’.
As I didn’t know any mentors or investors,
gathering information was my only option. I
followed through by attending Gordon McKay’s
“Money and you” seminar. My defining moment
was when he shared his realisation that he didn’t
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need a degree to become a millionaire. His positive
energy fuelled my passion for buy-to-let properties.
I instinctively knew income-generating properties
were for me. With a limited income and the support
of my husband, I persevered and became a keen
student, reading everything and attending property
seminars. Slowly I started putting my plan into
action: buying assets that create a passive income,
ie properties that would make a profit after all the
expenses were paid.
For the first property I bought, I utilised a bond
originator and used my home as security, applying
for the largest lending amount possible at the lowest
interest rates. Being a conservative investor I also
had savings. I entered the property market at the
end of 2008, when I purchased my first apartment
in the Durban CBD from an estate agent.
Trusting her, I fell prey to the old cancellation
fee scam, but in the end the legal system took its

December January 2013/4 SA Real Estate Investor

course and awarded me with property number
one. Even with the added legal costs I still ended
up with a monthly profit because I brought a
positive cash flow property. It also did not hurt
to have the additional savings on hand to pay for
legal fees upfront. My first property experience
taught me that I could never compromise on ethics
and honesty, even if it is easier. To protect myself
these days I only pay funds into lawyer accounts.
This property scam has taught me not to trust too
quickly and never to give up.
My financial strategy is to use my mortgage
loan on my home to purchase smaller properties,
this reduces my reliance on banks. I build wealth
in the smallest means possible by purchasing
entry level properties to add value to my
portfolio, a strategy I learned from Jason Lee:
“the lower the price you pay for the property,
the higher the potential yield”. The benefits of
these cheaper bachelors in CBD areas ultimately
www.reimag.co.za