Real Estate Investor Magazine South Africa Real Estate Investor Magazine - March 2017 | Page 20

INVESTOR OF THE YEAR

AWARD

Experimenting in the Green Building space Projects on the cards for Karl and Laree involve taking their primary residence completely off the grid.“ After a lot of research into alternative energy sources and calculating the ROI, we decided to turn our home into an income producing asset, as opposed to an income consuming asset,” said Karl.

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INVESTOR OF THE YEAR
2 nd ANNUAL AWARD 2017
To this end, the Landmans have already moved their home and cottage across to solar power and gas and have designed an innovative rain water catchment system that catches 13500 litres ‒ roughly 10 days’ supply ‒ of rain water during an hour’ s rainfall. Water is filtered to make it drinkable and then pumped into the main house and cottage with a solar pump. And the results? Their monthly energy and water bill has decreased from R3 000.00 to just R500.00 per month. Karl expects to see a much better ROI from this investment, over the medium to long term, than he would have investing money into a retirement annuity or any other asset class that slightly beats annual inflation.“ An on average 4 % annual drawdown( for retirement income) will never keep up with the 20 to 25 % annual cost increases in water and electricity.”
7 KEY INVESTOR TIPS FROM KARL
1 Minimalistic living frees up cash and reduces stress. 2 Investment returns are what you don’ t pay for – keep cost down & negotiate when necessary.
3 Don’ t waste a good annual rental increase – costs are moving up faster than the annual published Consumer Price Index( CPI).
4 Maximise your tax rebates by working closely with your auditor. Focus on legal tax avoidance, not tax evasion.
5 Ensure every asset invested in has a clear purpose i. e. income, capital growth, dividends, Rand hedge, emergency fund, cash in hand etc.
6 You are your own economy – manage it well – you determine your own inflation.
7 The grass is“ greener” where you water it.
18 MARCH 2017 SA Real Estate Investor www. reimag. co. za