Invest in property all over South
Africa
from as little as R100.00
Many of us have the dream of being property tycoons, we dream of owning this property or that property, hoping that someday we will earn enough or win a lottery jackpot to make this dream a reality. We have read books from various authors stating how and why we should invest in real estate but there is always that one little (or not so little) obstacle
MONEY where do we get it, is it safe can you afford to invest that much in a deposit or bond, are the returns guaranteed and what if there is no income from the property if the tenants don’t pay, will the bank repossess the property? Will we be blacklisted and many other things that rightly will cross our minds.
But yet at the same time we see others get filthy rich from property investments, we see people who despite the risks and economy make a killing from property investments, we see people who don’t really care whether property prices go up or down as they will be making money either way.
The real problem
The problem with property investments is not the property but the banks and other lending institutions, the problem is the repayments if a property is not making an income or enough of an income we may lose our investments and be in a worse financial predicament than we were before we made the investment, for example if we let a home to a tenant and lets say the economy goes south, property values fall and there are large scale retrenchments, our tenant now loses his job cant make the rent and therefore defaults on payments we still owe the bank their repayments but we cant even get the property let or we get it let at less than the repayments so now if we don’t sell at a profit we risk losing the property and our ability to obtain credit in the future. This not why we invested and this very real danger is what’s keeping us from investing in the lucrative property market. The previous scenario is exactly what happened to many people in 2008-2009.
The solution
What if we could take many investors who could together bypass the banks and buy a property through a collective pooling of resources, therefore eliminating the risk of repossession completely and split the proceeds according to the investment made (the banks take depositors money and lend it at a profit to house buyers anyway).
For example
You invest in total R4000.00 for property investment.
We buy a property for R400 000.00 including all costs
You therefore own 1% of this property
Income from this property =R36000.00 for the first year after costs
(This type of income would have you paying extra money to the bank every month= negative cash flow) rental income increases 10% a year
Year 1= R360.00 (1% of R36000.00)
Year 2= R396.00
Year3= R435.60
Year 4= R479.16
Year 5= R527.08
Year 6= R579.78
Year 7= R637.77
Year 8= R701.54
Year 9= R771.69
Year 10= R848.86
Your rental income would increase every year and you would always remain in possession of your share of the property. If the property was now sold for lets say R1000 000.00 after costs you would now receive R10 000.00 (1% of R1 000 000.00), meaning that your property has now earned you R5737.48 (10 years rental income) +R6000.00 profit on sale +you regain your original R4000.00 investment = R15737.48 total cash
Now this is how the rich get richer
What do we do and how do we earn money?
We find the best properties available nationwide with the best returns
Many of the properties already have existing tenants and therefore are already generating an income.
We negotiate terrific cash discounts on properties (which we pass on to you) and take care of the management of the property
We inform you when you own a share/s in a property
We thoroughly screen all tenants and send all property share holders email pictures of the property as well as the physical address of the property
We retain a property management fee of 10% of all income derived from a property.
We inform you of any offers to purchase on a property of which you are a shareholder
We are not emotionally invested in any property and therefore only make property decisions which make business sense, we only look at whether a property will deliver a good return or not
What do you do?
You pay a once off registration fee of R150.00 into our account use your identity number as the reference and we will register you as an investor as soon as we recieve it
You then buy shares in units of R100.00 (all properties are divided into shares of R100.00)
There are no debit orders on your account as shares can be bought at any time with no obligation on your part but you may put a stop order on your account if you wish
Sit back and wait for us to inform you of properties you own
If you want a property to be put on the market you can then inform us of this and all shareholders in said property will vote electronically over a period of one week if your motion gains 51% or more the property will be put onto the market.
If you want to sell any shares you own in a property and the other shareholders have not agreed to sell you will inform us of your intention and give us 6 months to find additional shareholders you will still get to keep all the income you received from the property and your original investment will be returned to you.
Deposits can be made at any fnb branch or through electronic transfer
Account no 74094141914 branch code 252942
Please email proof of payment with Invest or Register or Register+Invest to accounts@investinpropertysa.co.za
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