Real Estate Investor Magazine South Africa October 2018 | Page 22

INVESTOR INTELLIGENCE
Best Investment
Strategy for
Passive Income
BY PROPERTY ASSIST
I
n this article, our aim is to compare a buy-to-let strategy
with alternatives which have the same fundamentals as
well as the additional benefits that emerge from impact
investing.
As part of their property investment goals, many investors
are rightfully focused on earning returns but do not always
take into consideration the lasting impact of their decisions.
Especially towards those who paid the initial price to create
the investment opportunity in the beginning.
With impact investing becoming the trend amongst
property investors it is time to revisit the conventional
investment philosophy. Focussing on making an impact, whilst
earning excellent returns.
Such examples include an investment into a distressed
property with the intention to:
• assist property owners in distress to recover;
• minimize potential loss of property or proceeds; and
• generate a measurable, beneficial social impact.
Basic Fundamentals of Recovery & Buy-to-
Let Property Investment
1. Purchase price
• The purchase price has the following attributes:
• influences your returns
• risk mitigation tool
• determines the timing of your exit
• determines the value of the underlying security.
Should you purchase a property at lower than market value,
your returns will be secured. This can be achieved without
taking advantage of others, but in a manner that is mutually
beneficial.
2. Property management
It is essential to ensure that the correct tenant occupies the
property, considering legal costs and processes for eviction,
whilst maintaining the proper condition of the property and
managing the income and expenses on a continual basis.
Alternative Property Investment Opportu-
nities
Specialist asset originators such as Property Assist provides
structured, wealth-creating alternative property investment
opportunities to property clubs, institutional investors and
private individuals.
The solutions are collaborative and aim to provide lasting
results for property owners in distress.