Theodore Roosevelt, one of the richest men of all time made the statement, "Real Estate is the basis for all wealth".
Currently there is a lot of talk whether Is ownership of a property still a good investment? and also as a whole is still a good investment with advisors having conflicting views.
Some advisors would advice you that if you are already a home owner you should not put your money into more property as you are not diversifying enough. Others say that buying property is one of the safest investments that keep up with inflation.
Property ownership in South Africa is very low and volatility in the interest rates makes it difficult to buy property especially for those first time buyers. The South African Reserve Banks governor, Tito Mobweni, announced that the bank was investigating the possibility of introducing a second fixed interest rate. In the mean time it is expected that the South African Reserve bank will hike interest rates by another 50 basic points in October and with another 50 basic points in December 2006. This could influence the answer on whether ownership of a property is still a good investment.
Banking institutions in South Africa this week announced the lowest growth in the property industry in six years and according to them the outlook continues to look bleak. The same with the pricing of houses, house price data continue to reflect "softening consumer activity" with "substantially reduced enthusiasm for buy-to-let properties from investors". Experts predict a nominal year-on-year price growth of between 7 and 8% for 2007.
While the battle between the advisors continues the property industry will continue producing wealth creation. Property investments has consistently produced, created and even developed permanent millionaires over the decades than any other investing strategy in history. While some people make money in property others might find that it is not really for them.
Best of all investing in property is not just for the rich. If you do it correctly, way up all your options, speak to advisors and have the desire to succeed you can create wealth for yourself.
Overall people like property. Not only is it a relatively safe investment that 9 out of 10 times gives solid returns but property ownership also creates exciting investments that make the owners feel successful.
How can I use property to buy wealth?
According to me there is always a time to buy and a time to sell and also a time to hold. The biggest mistake is that people do not allow themselves to wait. Never be anxious or in a hurry to buy property or to sell property if you are buying for an investment. Instead, reassess your investment portfolio, your strategy or seek the advice of an advisor.
If you can get the balance right you could end up owning several properties,
have them paid off over time and find yourself on that road of wealth.
The editor
Pat Jewell
www.cyberprop.com
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 Newsletter:
30 July to 5 August 2010 - Howick, KwaZulu Natal, South Africa |
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