Real Estate Investor Magazine South Africa March 2013 | Page 20

COVER STORY
for about eight people who also have families to
support and, most importantly, I have tripled
my income.”
Many others have created jobs, notably for
handymen and maintenance teams, as well as
administrative positions.
For some, new business opportunities arose
from their property investment, for example,
one investor has started his own boutique
property management company.

Lessons learnt
There seems to be solid consensus among the
investors that if they had a chance to change
anything in the way they built their property
portfolios, it would have been buying more
properties sooner.
As one entrant so succinctly put it: “Thinking
about the enormous capital growth we made on
our first properties and the fact that I cannot
recall that they ever were without tenants, we
definitely should have been more aggressive
in our investment by buying more during
2001-2006, buying at least five properties per
year. We would definitely have invested more
and earlier in fixed property which offers a
guaranteed return in the long run and exploit
the market trends in our favour to speed up
momentum.”
“I would have bought more properties faster
and would have been less conservative,” added
another.
But some lessons learnt are even more
valuable, as this entrant explained: “Most of
us are of the opinion that we are born to be
average, above average or exceptional, poor,
middle class or wealthy. Since investing in
property we have learned to not be blinded
by tradition but instead to always reach to the
next level. We became aware that opportunities
and wealth are for everyone and not only for a
selected few. The best part of it all is that it is not
even difficult. With the necessary know how,
which is easily available in the times we live in,
and with some effort and hard work, wealth is
within reach of everybody.”

Property investment: changing lives
All of the entrants believed that property
investment has changed their lives – and for
the better. Some of the often quoted chances
included more money to help others, more time
to spend with their families and doing what
they love, for example, travelling.
“Before when I was in a cash business, I
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March 2013 SA Real Estate Investor

worked very hard and had no rest - my wife
used to complain that I don’t have time for her,
even on Sundays. But now I have time for my
family - we have Sunday lunches together - and
my future is brighter.”
A good number of entrants expressed peace
of mind that their retirement funding has been
secured. “We love the idea that even if we decide
not to buy anymore properties, we will be well
taken care of in our golden-oldie retirement
years,” says one entrant. “Investing in property
has changed my life. I have no stress about my
future and my family’s future. I can now retire
in ten years and will still be financially free,”
added another.

“There is nothing ever
better than passive
income.”
A number of entrants report working less
while earning more, and some have been able
to quit their jobs. “There is nothing ever better
than passive income,” enthuses one entrant. “I
have quit my job to invest in property full time,
with plenty of spare time for my family.”
More personal development has also resulted
from the property investment journey. One of
the husband and wife teams reported that they
have learnt to think outside-the-box, a quantum
leap from the “play it safe” mentality they grew
up with and that was further entrenched in the
corporate world. Another entrant said that he
discovered that he has good communication
and negotiation skills. Yet another comments:
“Property investment has instilled confidence
and discipline in me and awakened an appetite
for knowledge.”

Starting your own journey
All the entrants in our Investor of the Year
competition are ordinary men and women who
have discovered the power of property to create
wealth by taking action. No one can become a
property investor without taking the action to
acquire that first investment property, and then
the next one and the next one.
Many others are doing it successfully right
now, having started with no capital and no
special skills or connections. Don’t wait another
day to join this group of inspiring people who
are not only securing their financial future, but
are also building a legacy of wealth that will
bring prosperity to generations to come.

ADVICE FROM REAL LIFE INVESTORS
freedom through
1 Achieve financialand investing wisely.
living modestly
2 Only buy things if it can generate an
income.

3 If you look after the ten cents, the
ten rands will look after themselves.

4 Get the knowledge through
research, reading and attending
seminars, workshops and events.

5 Knowledge is power and gives you
confidence to make good decisions.

6 Do thorough research and apply
good common sense.

7 Price, location and interested rates
are all important but the most important factor is whether the property in a good investment which can
generate a positive income within
two to four years.

8 Don’t overexpose self, keep reserves
for unexpected maintenance, vacancies etc.

9 Always look for long-term value.
10 Don’t sell – buy more!
11 Negotiate!

12 Pay more than the minimum
monthly bond instalment to reduce
the interest payable and the term.

13 Pay the first bond instalment the moment the bond is granted to make a
significant saving on interest.

14 Focus on the protection of your
assets by using trusts to acquire and
hold investment properties.

15 Build a support structure – a mentor, a team of specialists, or join a
professional property investment
organisation.

16 Property investment requires
patience, but your patience will be
well-rewarded.

www.reimag.co.za