Real Estate Investor Magazine South Africa March 2013 | Page 30
GETTING STARTED
BY KOOS DU TOIT
Buy-To-Let
too good to be true?
C
reating wea lth through the
buy-to-let property investment system
is so simple that many people believe
it’s “too good to be true”.
How can ordinary South Africans create a
stream of passive income that keeps pace with
inflation year after year, and benefit from capital
growth at the same time? How do they acquire
a portfolio of properties without lump sum
investments or large monthly contributions?
And how can all this be done without special
skills or knowledge, and without much time or
effort? It seems just too good to be true.
But when you look a little deeper, you find it is
“not too good to be true” - it is just a tried-andtested system that has proven over time to be
the best, and simplest, way to financial freedom
and wealth.
Passive income and capital growth
Investing in a buy-to-let property allows you
to create a stream of passive income that keeps
pace with inflation year after year, because the
property is generating a monthly rental income
that increases each year with inflation, or the
percentage stipulated in the lease agreement.
This income is passive, because you receive
this income regardless of whether or not you
are working and regardless of where you are
in the world.
At the same time as it is producing this passive
income month after month, the property is
also appreciating in value year after year. And
this capital growth can be accessed without
selling the property (and thus losing the
monthly passive income) through, for example,
refinancing or a second bond.
28
March 2013 SA Real Estate Investor
Acquiring a portfolio of properties
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