Real Estate Investor Magazine South Africa July 2015 | Page 7

INVESTOR TALK

Win Back Your Financial Freedom
FROM THE PUBLISHER

W

e need to look at spiraling
property
ownership
costs in South Africa
such as increased rates, taxes, levies
and utilities. According to PayProp
statistics, most buy-to-let owners
are struggling to achieve inflation
beating rental increases with new
leases. Cash-strapped tenants have
become more resistant to rental
increases, which is putting huge
pressure on rental yields. Any gains
made on the upside for landlords
are immediately eroded by overall

FROM THE COPY EDITOR

O

ne of the greatest obstacles
to addressing South Africa’s
growth is the protracted
electricity crisis. While this must be
our most important priority to solve

cost increases. Lower rentals are now
accepted as the norm for landlords to
avoid the situation of non-payment
of rent. “The further impact of
impending rising interest rates can
cause some homeowners to sell
and downscale to a rental property.
This might be the only thing that
can make a buy-to-let investment
worthwhile again for investors,” says
John Loos at FNB.
The impact of the ineffectiveness
of the state-run Deeds Office in
delivering deeds timeously and
in getting properties registered
is having a negative effect on the
market. From January 2014 to May
2015, there were 103 workdays lost
due to inefficient staff, systems, poor
equipment and IT problems. There
are huge backlogs in registrations,
which are affecting conveyancers,
homeowners and estate agents. These
delays are costing both the public
and investors millions.
Freedom may not be that far out of
reach from investors and all it takes is

some proactivity and a commitment
to constantly improving your own
financial education.
One of the main reasons consumers
and
investors
are
struggling
financially today is that they do
not understand that opportunities
are always available despite poor
performing economies, governments
and systems. More individuals and
businesses are investing offshore.
The offshore rally suggests there
are better returns, more stable
economic environments elsewhere,
and efficient systems with a powerful
hedge against the declining Rand.
Next month at the annual
REIM-Rode conference we will
be introducing many of these
opportunities to you. Make sure you
do not miss it.
Successful investing!

NEALE PETERSEN

FOUNDER AND EDITOR-IN-CHIEF

Learn To Recognise Opportunities
as it impacts directly on reduced
economic activity, general confidence
and much needed investment into
South Africa’s infrastructure. More
delays in resolving the electricity
disruptions, economic policy and
regulatory
uncertainties
pose
increased risks to our sustainable
future, to those invested in South
Africa and especially those investors
who have all their investment eggs in
one basket.
Despite changes and shifting
trends in the market, the right
mindset and attitude goes a long way
in helping you to benefit from your
real estate investment journey and
reap the rewards.

In this edition, discover smart ways
to diversify your property portfolio
and grow your wealth.
Learn how to boost your pension
by using listed property funds.
Then, read Craig Featherby’s
inspiring story about how he went
from a farmer to a successful financial
planner to grow both his wealth and
his business.
Enjoy the read!

MEGAN DIENER

COPY EDITOR

“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when
other people want to sell. Hold what you buy!”
JOHN JACOB ASTOR

www.reimag.co.za

JULY 2015 SA Real Estate Investor

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