19/10/2016
Your home is not an investment.
Unfortunately that's true. The property you call home is not an investment. Yes, its an asset you own, but when you realise the value in your home by selling it, you have to use that money to buy another residence. Your home will only realise a profit if you sell and happen to buy a new residence at a lower price.
However, there is a way to own property as an investment without the high cost of buying and owning a second property, never mind avoiding the financial risk involved in owning a second property.
If your stand have some extra space, you could build a garden flat for renting or to become an AirBnB participant. A garden flat will increase the value of your property immediately without the acquisition cost of a new property or the long process of registration and commission payments involved.
Here are a few of the immediate benefits of building a good quality garden flat:
Your property value increases immediately
Reduce your bond term by 5 years
Save R660 000 on your bond
Increase your retirement fund by R787 500
Value of your flat increases by 5 to 12% per annum
Rental income increases by 6 to 10% per annum
( * based on certain assumptions on your current property ownership and bond details)
Whether you consult with us to assist you in building a cottage that suits your property and your needs, or whether you use another company, the financial benefits are real. We can calculate the exact figures applicable to your own details.