MyMoney Online

Take the hassle out of your property investment

When investing in property on your own the classic approach is to buy a place and rent it out. You basically use the rental income to pay off the property over time leaving you with an appreciable asset. It sounds easier at the outset but there are many factors which affect the investment:

The price you pay

The rent you receive

The maintenance costs

The costs of buying and selling the property

The tax payable

Listen to Paul Roelofse chatting on Weekend Breakfast below...

If you get it wrong you could be stuck with an investment which returns way below what you could have done with your money in a bank account. Add to it the hassle factor of running the project and the legalities which favour the tenant you could be in for a long rough ride.

There is an easier way to invest in the property market. A fund which invests in property companies which are listed on the stock exchange. You can choose either a Property Unit Trust (PUT) which will be managed by a fund manager or an Exchange Traded Fund (ETF) which tracks the property index on the JSE. The advantages going this route are:

Liquidity You can sell your investment at the market price on the day. Unlike a fixed property where you have to find a buyer to pay the price you are looking for. This could take months, and then even longer to process the transfer and registration of the new buyer before you get your hands on the cash.

Risk The Unit Trusts and ETF’s offer a spread of shares in property companies offering a diversification across commercial, residential and industrial properties. This significantly reduces your risk as your investment is spread across companies and sectors in the property market.

Easier to manage The investment is managed by a range of professional companies. They contend with the purchase issues, maintenance, rental agreements, legalities of running properties. Their business models are well run to the point that they can forecast their future growth and returns with

Read more from Paul Roelofse at www.investforlife.co.za


This article first appeared on 702 : Take the hassle out of your property investment


Read More
3 shares that’ll boost your wealth, if you buy now (by Cannon Asset Managers)

3 shares that’ll boost your wealth, if you buy now (by Cannon Asset Managers)

The Money Show’s Bruce Whitfield interviews Cannon Asset Managers Portfolio Manager Samantha Steyn.

6 tips on how to avoid overspending this festive season

6 tips on how to avoid overspending this festive season

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

3 shares you’ll do well to buy this week (by Cartesian Capital)

3 shares you’ll do well to buy this week (by Cartesian Capital)

It’s Stock Pick Monday on The Money Show. Bruce Whitfield interviews Cartesian Capital CEO Anthea Gardner.

3 shares that’ll grow you wealth, right now (First Avenue Investment Management)

3 shares that’ll grow you wealth, right now (First Avenue Investment Management)

The Money Show’s Bruce Whitfield interviews investment analyst Nadim Mohamed.

3 shares that should do very well, if you buy them now (by FNB Securities)

3 shares that should do very well, if you buy them now (by FNB Securities)

The Money Show’s Bruce Whitfield interviews FNB Securities Head of Research Chantal Marx.

Savings accounts with the best interest rates in South Africa

Savings accounts with the best interest rates in South Africa

Bruce Whitfield interviews Daniel Rubenstein, Co-Founder at MyTreasury – a tool that finds the best interest rate for you.

Popular articles
What Shoprite, Checkers, Pick n Pay and Makro will offer on Black Friday

What Shoprite, Checkers, Pick n Pay and Makro will offer on Black Friday

Up for a Springboks level scrum? Instructions on how to ensure you get the deals in your inbox the moment they become known...

‘If Mugabe could be shafted so can Zuma - the view of many in SA’

‘If Mugabe could be shafted so can Zuma - the view of many in SA’

The Money Show’s Bruce Whitfield interviews independent political analyst Daniel Silke.

'Molefe doesn't fit the recruitment criterion into the SANDF'

'Molefe doesn't fit the recruitment criterion into the SANDF'

Sandu secretary, Pikkie Greef says the union will lay criminal charges against Molefe's illegal appointment in the SANDF.

I didn't believe that he was ever going to step down - JJ Cornish

I didn't believe that he was ever going to step down - JJ Cornish

EWN Africa Correspondent, JJ Cornish describes Mugabe's Sunday evening speech as a humiliating downturn for the Zim president.

 Mugabe is actually showing them that he knows this game - Njabulo Ncube

Mugabe is actually showing them that he knows this game - Njabulo Ncube

Millions tuned for the Zimbabwean president's 'resignation' speech on Sunday night and instead called for unity in Zanu-PF.