Generic selectors
Exact matches only
Search in title
Search in content
Search Products
Filter by Categories
B-BBEE
Blog
Company Secretarial
Featured
General Business
General Interest
Investing in Property
Marketing
Personal Growth
Personal Wealth
Tax
Trusts and Estate Planning
Uncategorized

So many people think that first prize is to buy their own home. But is that really the best option? What does it entail?

  1. Insurance
  2. Gardening
  3. Maintenance
  4. Neighbours that you’re stuck with
  5. A big chunk of non-discretionary expenses
  6. Stress to sell when you want to move on

So what is the alternative? Renting your home. The advantages?

  1. No insurance
  2. No gardening
  3. No maintenance
  4. Neighbours that you are not stuck with
  5. Flexibility to up size or down size
  6. Minimum stress when you want to move on

Compare the long term financial effect.

  1. In the short term, the cost of renting is definitely lower than the cost of buying
  2. If you are disciplined, you should then invest the money saved.
  3. Ultimately, you can build sufficient investments that the passive income will pay your rent, so you’re all square.

What about investing in rental property? Great. But bear in mind that it involves –

  1. Insurance
  2. Gardening
  3. Maintenance
  4. Rent collection
  5. A big chunk of non-discretionary expenses

Of course, you can always outsource 2, 3 and 4. If you want to build your wealth, this is, in my view, the best way to go.

You simply must hold the investment properties in a trust owned company, but that’s another story.

0 comments

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Need help with your Trust or Business?

Contact us today or set up a free meeting with our CEO, Derek Springett. We have been offering expert advice and business services since 1971. You can also visit our online store to see our full list of services.

If you enjoyed this article, you may like to subscribe to the monthly round up featuring all of my latest articles. Then check out the two books I have written which have proved to be very popular.

Complete the form below to subscribe to my monthly round up.