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
20 Residential E-Book 2016 www. reimag. co. za