Real Estate Investor Magazine South Africa Real Estate Investor Magazine - February 2017 | Page 24

ACQUIRING

Key Considerations

6BY

Smart Investment Decisions

GERT VAN STADEN

Investors facing yet another year of low returns, capital erosion due to high inflation, and ongoing volatility in the markets will be looking for a smarter way to invest in 2017.

There are six key factors investors should be considering when making investment decisions this year.

1 Simplicity

The world’ s most successful investor, Warren Buffett, warned:“ Never invest in something you don’ t understand.” Avoid investments shrouded in
jargon and beset by uncontrollable risks that require expensive financial advice. Many investors are surprised to discover, for example, just how simple buy-to-let property investment is: acquire a well-chosen property, rent the property out to a reliable tenant, get a professional rental management company to manage the tenant and the property for a fee. Then watch your investment grow into a passive income stream for life as the property produces an inflation-linked rental income month after month, while also producing capital growth year after year.
22 FEBRUARY 2017 SA Real Estate Investor www. reimag. co. za