Real Estate Investor Magazine South Africa October/ November 2019 | Page 42

FINANCING Gearing commercial properties Is it worth the cost and complexity? Gearing is one of the major contributors to property’s popularity and success as an investment, enabling investors to access the benefits of assets far more valuable than their initial cash outlay. When it comes to commercial property, however, gearing involves some significant additional complexities that have deterred many an investor from leveraging this useful financial tool. 40 OCTOBER/NOVEMBER 2019 SA Real Estate Investor Magazine