A self-made millionaire once told me …“I don’t buy property to sell – I buy property to rent” … after he bought his first home he leveraged the property to buy a second; he leveraged the second to buy the third and that’s how it all started …
Thousands of South African expats living in the UK, USA, Canada and Australia are helping their landlords to buy property to rent and in so doing feathering the landlords’ nest!
Why rent when you too can buy? Before liquidity and affordability becomes a stumbling block think about the money you have tied up in South African retirement annuities or pension back home. These are Rand based investments, which in world currency terms has been on a depreciating trend for the last 10 years and more!
Given the positive growth trend in international house prices, what when converted to local currency, will be the value of your retirement investment on your 55th birthday?
In reality very little – for a start you’ll receive only a third in lump sum which won’t add up to much and nor will your monthly annuity income shoot out the lights!
If, however, you were to cash-in your South African retirement annuities right now, transferred the full capital value abroad and used the proceeds as a deposit to buy your own home you’ll be feathering your own nest – and soon you may own property number two and three …
Relaxation in South African tax legislation in 2008 allows expats holding retirement annuity policies to cash-in these investments before the generally accepted retirement age of 55 for transfer abroad. This is your chance to start buying and stop renting!
Residential real estate is a smart and sound investment and rocketing graphs are testimony to the fact.
Where to start? Get your free, personal South African financial report to discover exactly how much money you have waiting in South African retirement annuities to help owning your own home in your new home country.