If you would like to buy a property or two, please raise your hand. If you love wading through red tape and bureaucracy, please raise your hand. If you enjoy spending ages on hold and doing endless administration and filling out forms, raise your hand. If uncertainty and putting your life on hold gives you a thrill, raise your hand. If you only did so right in the beginning and the other statements leave you feeling dizzy, this article is for you.
Many people may have been wondering if this is the opportune time to put themselves in debt and buy a property for investment purposes. For those who already have rental properties, the question becomes this: with all the economic insecurity people from all walks of life face, is using real estate as a form of passive income still a reliable investment?
Should we hold on to our properties, no matter what, since it is currently a ‘buyer’s market’? Should we put ourselves in debt and buy a property now? With all the economic insecurity people from all walks of life are facing, is using real estate as a form of passive income still a reliable investment?
Buying a house is a scary prospect and may be something that you have put on the back burner. You may tell yourself that you are being wise – after all the current economic climate is dicey and you may worry about the future. However, do you know that should you buy a house, you not only save on rent (in other words paying someone else’s bond) but your asset may well make a profit after the first year? This means it is one of the better debts you may enter into in your life time. Admit it, the vast majority of us yearn for a place to call our own…
Many first-generation yuppies have come to realise that they need to enter the property market. However, most of them find that getting a home-loan of between R1 500 000 and R2 000 000 is not always possible.
The creative ones usually find a way around this dilemma by purchasing a home in the R300 000 to R700 000 price range. The home is then used to generate a rental income. The rental is often sufficient to cover their bond repayments. This leaves many of them happy landlords.
At Northwood financial services we have a panel of dedicated professionals that assist us and our clients with a host of different issues.
Recently I received an email from a home-owner. Having sold his property, he is now struggling to get occupational rental from the buyer who had taken early occupation. In this instance, it is much harder to help. Continue reading “Knowing when to ask for help”
The last blog touched on how Northwood protects clients’ wealth by adding diversity to the unit trust investment portfolios on offer. This week, we will look at creating wealth by adding more diversified investments.
Our clients know that when it comes to investments, we prescribe to the “don’t put all your eggs in one basket” philosophy. We seek to add value and diversity to all our client’s portfolios to creatively manage risks.