Real Estate Investor Magazine South Africa May/June 2015 | Seite 34

STRATEGIES

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Ways To Become A

Property Multi-Millionaire
Become a Property MultiMillionaire… Part 1
BY JASON VORSTER

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nyone can see that, with interest rates at their
current level, money in the bank is going to
grow so slowly that it might as well be kept
under a blanket. Property prices, by contrast, are rising,
and outstripping inflation.
All that might change, of course. But anyone who
has been tempted to release capital from their money
pots, and wants to put the money to good use, not just
blow it on extravagances, will be mad not to include
property in their long-term financial calculations.
Here is a 10-step guide to becoming a property
millionaire, it is hardly fool- proof or risk-free, but it
incorporates practical tips:

“Assess all the pros and cons
of an investment before
jumping in.”
1. Target apartments rather than houses
Investors who put money into apartments generate
good returns. Apartments make better buy-to-let
investments than houses. If your budget will stretch
to a two-bedroom, two-bathroom apartment go for
it. The second bathroom sounds unnecessary, but the
more flexible your buy-to-let property is, the better.
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MAY 2015 SA Real Estate Investor

2. Be patient
However, assess all the pros and cons of an investment
before jumping in. Remember that property is a longterm game, and if you want to make money from it,
never put yourself in a position where you are forced
to sell.
How many buy-to-let investors commit hastily
to a purchase after listening to the sales pitch from a
developer? Talk to local letting agents before taking the
plunge.
3. Don’t put all your eggs in one basket
As with stocks and shares, a diverse property portfolio
is much more likely to weather financial turbulence
than one relying on a single, bold gamble. The potential
return on that waterfront property in Knysna may look
mouth-watering, but if the Garden Route lets you
down, it is nice to have a student buy-to-let in Hatfield
to fall back on.
4. Look for ways to add value
One of the best ways to make money out of a property
is to add value to it. Even seemingly unglamorous
purchases can prove lucrative. For instance, consider
an apartment above a shop with potential for a loft
conversion.
5. Become tax-efficient
You will never become a property millionaire if you pay
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