property Archives - The Wealth Room

news

Buying property as an investment

One of the questions I get asked on a daily basis is, whether property is a good investment or not. This answer has so many variables, it’s really something you would have to look at on a case for case basis, but let’s look at some guiding principles that can help you make the right choice. Let’s say you find a house at a MARKET VALUE of R1000 000 and you take out a 90% bond (with a 9% interest rate) on the house, as most banks are not giving a full 100% bond anymore over a period of let’s say 25 years. First off you are going to have the following costs: Transfer cost on R1000 000 will cost you about R33 000 Bond Registration cost of R900 000 will cost about R20 000 Let’s look at the future costs of the house: The R900 000 bond over 25 years at an interest rate of 9%

Change the Way You Invest by Understanding Asset Classes.

If you have an understanding of the different asset classes, it will help to change the way that you invest! Now that we have had an in-depth look at what the stock market is all about, we can move onto Unit Trusts as the next topic or investment vehicle (investment option). Before I do this we need to rewind one step quickly and talk about something that is called ASSET CLASSES. The reason, for this, is because without this foundation information, we will not understand how most investment options are structured. I encourage you to come to grips with the term ASSET CLASSES and ASSET ALLOCATION, as this will play a major role in setting up a successful investment portfolio for yourself. Before we can really go in depth for selecting the right funds for your portfolio, we need to underst

The Wealth Room

Buying property as an investment

Change the Way You Invest by Understanding Asset Classes.

Leave a Reply Cancel reply