Everything Counts | Episode 54: Protecting property wealth

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Property is often seen as one of the more reliable ways to build long-term wealth. It’s tangible, familiar and, for many South Africans, an important part of their financial plan. But investing in property comes with risks that can be easy to overlook, from hidden costs and changing rental yields to considerations around what happens if you’re no longer able to earn an income. In this episode of Everything Counts, we look beyond the property itself to explore what it really takes to build a resilient property investment strategy. Motheo Khoaripe is joined by Sinenhlanhla Sithomo, head of insurance business at Investec, and Elsie Rateiwa, head of financial services at Lightstone Property, to unpack the risks, potential returns and the importance of protecting the income behind your investment.

00:00 Introduction
01:05 Investment property as part of a broader wealth strategy
01:39 What are the risks of investing in property?
03:10 Is buying property in Cape Town a good investment?
04:52 The need for liquid cash when you own an investment property
05:48 Risk of buying multiple properties in a concentrated area
06:25 What are the hidden costs of investing in property?
07:30 How to financially prepare to buy a house
08:28 How to calculate cash flow resistance
09:51 How to calculate a realistic return on investment in property
10:40 Protecting the income that maintains your property investment
11:42 The benefits of having life insurance and mortgage protection insurance
12:07 Does mortgage protection insurance cover you if you become disabled?
13:34 Why people don’t see themselves as assets to insure
14:25 What insurance do I need for investment property?
16:40 Life cover vs mortgage protection cover for property investments
18:25 What to consider if you have multiple investment properties
21:50 How long to see return on investment in property?
24:52 How to identify a good area to buy investment property in?
25:36 Key takeaways for investing in property
26:53 Conclusion
25 Aug English South Africa Business · Investing

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