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Carter Property Group /  Cell ((076) 969-6525/  admin@carter.net.za +1 305 767 1658 or Contact

BUY TO LET INVESTMENTS

WHY DOES SOUTH AFRICAN PROPERTY OUTSTRIP US & UK PROPERTY INVESTMENT?

ABSA STATS SHOW ALL AREAS BUY TO LET PROPERTY EXCELLED, HOWEVER, SECURE ESTATES DID BEST

 

  • Higher Inflation drags up prices and rent, devaluing the cost of mortgage by 5.75% pa. If rent-increases are invested in the bond, repayment of a 20 year bond could occur in 8 yrs.

  • Despite emigration, SA grows by 100,000 people per year and the growing mostly Nguni middle class move to more affluent areas.

  • Properties located for Expat management and EU holiday makers will continue to prosper.

  • As South Africans leave, in many cases, Expats fill their shoes, thus increasing the demand for secure, managed and services properties. That is what we do well.  E.g. The Waldorf's 4.0 meter high wall, access to Sandton, Gautrain, shops, shools, police station make it an expat favorite - that is a formula we intend repeating in Brooklyn and Waterkloof Pretoria.

In RSA - for the past fifty years, Buy-to-Let property in was the most reliable place to invest. ABSA's stats used in the Trade Source graph below show that on average since 1966 property's capital growth has averaged over 11% pa and rents are generally 4-8% net.

 

While stock markets crash taking retail, commercial and industrial property funds with it, residential property sailed like a ship above the swell while t times, paper & stock-related investments crashed by 20-40% in days - never to recover. Why invest in Residential property in growing cities? 

  • It has never dropped more than -3% since 1966.

  • It has always surpassed its losses  within 36 months of a down turn, while paper & stock losses were permanently lost.

  • R 100,000 invested in insurers made R 395,553 

  • R 100,000 invested In JSE made, with 40% risk of loss, R 625,480

  • 100,000 invested in the national residential property av.  shown below gave 10.1% av.  CG & 6.00 % net rent est.+ R 2,668,766

  • R 100,000 invested in Carter's Waldorf yielded R 3,143,000 & if you qualified for bonds it would have made you R 11,800,000 from same R 100,000.