Real Estate Investor Magazine South Africa September 2013 | Page 26

STRATEGIES

BY KOOS DU TOIT

Does High Risk = High Returns
Or is low risk better?

I

t is a myth that buy-to-let property is a high risk
investment. This is because, unlike many other
investments, buy-to-let property investment
allows investors to manage – if not eliminate – all the
major risks involved.

This, however, may concern investors who still
believe that high risk equals high return. But
this, too, is a myth that has been perpetuated by
investment companies and asset managers – and
certainly not in the interest of their investors.

High risk doesn’t always equal high
returns
High risk investment does not guarantee a high
return – it only provides a possibility that you could
make a lot of money, with far less emphasis on the
fact that you might not… and that you actually face a
significant risk of losing your money.
The