Up to now there were only two ways you could invest in property. Each way has it’s own issues and limitations.
- Buy a suitable (investment property)
- Buy a REIT product (Real Estate Investment Trust)
1. BUYING A PROPERTY
Buying an investment property involves the following:
- Having the cash to buy it or,
- Borrowing from the bank and,
- Paying it off over 15 to 21 years
- Letting it to earn rental income
- Paying rates and taxes, levies and maintenance
- Paying rental agent commission
- Keeping books of account for SARS
- and …
Selling an investment property involves the following:
- Appointing an agent
- Once sold, settling the bond with the bank
- Paying the agent’s commission
- Calculate whether you have made a decent return on your investment.
2. BUYING A REIT
This is a simpler way of investing in property as an asset class. REIT’s are unit trusts or ETF’s that hold shares in a portfolio of listed property companies.
This way you get exposure to a wide range of properties in local or international markets.
It is easy and quick to get in and out of this investment as it is traded in a highly liquid market.
3. THE EASIER WAY TO INVEST IN PROPERTY
NOW there is another more interesting way and this is brought to you by EASY PROPERTIES, the people who brought fractional share ownership to the market through their online platform EASY EQUITIES.
Through EASY PROPERTIES you can become a fractional owner in a single or in multiple INVESTMENT PROPERTIES without the hassle of owning the property.
You can buy and sell as easily as you can buy and sell shares or unit trust units.
Watch the video below or go here for more info.