INVESTING
INVESTING
The Benefits of
Buy-to-Let
In South Africa , with its rapidly growing middle class , strong urbanisation trend and a staggering housing backlog , the opportunities for residential buy-to-let investors are phenomenal . The Finance and Fiscal Commission ( FFC ) estimates that it will require R800 billion - and a “ miracle ” - to clear the housing backlog of 2.1 million houses . The imbalance between the growing demand for housing and the fast dwindling supply , which has all but grinded to a halt thanks to the banks ’ stringent lending criteria and the enormous challenges faced by residential property investors , has ensured that rentals have increased steadily and rental stock shortages are evident across the country .
Over the last 10 years , thousands of investors have taken advantage of this opportunity , which shows no signs of abating . Using a triedand-tested system , which has been used by the world ’ s wealthiest for generations to create
real wealth , they steadily and responsibly been building small but highly profitable portfolios of well-selected and well-managed buy-to-let properties . These portfolios are producing not only ongoing , passive , inflation-linked income year after year , but also ongoing capital growth , resulting in exceptional returns on investment .
The Benefits of Buy-to-Let The benefits of a buy-to-let scheme far outweigh any potential pitfalls . “ There is a growing interest in the local property industry in buy-to-let property investments , which makes sense as the advantages of buy-to-let far outweigh any issues that may arise . Low interest rates , rising rents and recovering house prices have made the last few years very profitable indeed for many landlords .”
Buy-to-let properties are usually bought with loans from the bank . This measns that both the investor ’ s rent and capital gain are
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