Buy to let property remains one of the most popular investment options in South Africa. Many investors are drawn to the idea of earning monthly rental income while benefiting from long term property value growth. The key question most buyers ask is what returns are actually realistic in the current market?

The following explains expected buy to let returns in South Africa using clear examples and practical insight. It is written for everyday investors who want realistic numbers rather than sales driven promises.

What Buy to Let Property Returns Mean in Practice

When people talk about buy to let property returns they are usually referring to rental yield. Rental yield shows how much income a property generates compared to what it cost to buy. It helps investors compare different properties and locations.

In South Africa rental yield is normally expressed as a percentage. Higher percentages generally indicate better income potential but they do not tell the full story on their own.

Average Rental Yields in South Africa

South Africa offers relatively strong rental yields compared to many international markets. This is mainly due to affordable property prices combined with steady rental demand.

In many major cities gross rental yields typically fall between nine percent and fifteen percent. Some smaller cities and student driven areas can deliver even higher yields.

Premium locations such as central Cape Town usually offer lower yields because purchase prices are much higher.

National averages tend to sit around ten percent at a gross level. Net yields after expenses are usually lower but still attractive when compared to other asset classes.

This table is an example of rental yields across South Africa current at time of writing:

Where You Can Expect Higher vs Lower Returns

Top-Performing Segments

• Student accommodation near major universities (Pretoria, Stellenbosch, Bloemfontein) often sees yields of 12% – 15%+. The Africanvestor
• City center apartments and multi-tenant units in inner urban areas may yield 10% – 14%.
• Smaller towns like Port Elizabeth are notable yield leaders at the national level.

Lower-Yielding Segments

• Luxury or premium markets (like Cape Town’s Atlantic Seaboard) might yield closer to 4% – 8%, with premium price tags reducing rental income ratios. Financial Mail
• Larger free-standing homes generally produce lower yields than sectional-titled apartments.

Gross Returns Versus Net Returns

Gross rental yield looks appealing but it does not reflect the real return an investor takes home. Net yield is what remains after all costs have been deducted.

These costs include bond repayments municipal rates levies maintenance insurance and managing agent fees. Vacancy periods can also reduce income if a unit stands empty between tenants.

In most cases net yields end up two to three percent lower than the gross yield. A property showing a twelve percent gross yield may realistically deliver nine percent or less once expenses are accounted for.

Expected Monthly and Annual Income

Here’s what some typical rentals look like in major urban areas:

• Cape Town (inner city): R8,000 – R18,000+ per month
• Gauteng metropolitan areas: R6,000 – R15,000+ per month
• Pretoria student units: R4,500 – R12,000+ per month
• Coastal cities: R7,000 – R13,000+ per month

Example:
If you buy a R1.3 million sectional title apartment in Pretoria and rent it for R10,000 per month, that’s R120,000 per year — yielding ~9.2% before costs. Adjust for levies and agency fees and net yield may be ~7%-8%.

A modest apartment in Gauteng might rent for around eight thousand to twelve thousand rand per month. Similar units in central Cape Town may rent for more but often deliver lower yields due to higher purchase prices.

The key is not the rent alone but how that rent compares to the total cost of buying and holding the property.

Factors That Influence Buy to Let Returns

As you can see location plays a major role in determining returns. Areas close to universities transport hubs and employment centres usually experience stronger and more consistent demand.

Property size and layout also matter. Smaller units are often easier to rent and generate better proportional income. Larger homes may be more stable but often produce lower yields.

Interest rates financing terms and tenant turnover all influence final returns. So investors who actively manage costs tend to perform better over time.

Is Buy to Let Property Still Worth It in South Africa

Buy to let property can still be a solid investment when approached realistically. Investors who focus only on headline yields may be disappointed if they don’t plan for ongoing expenses.

Those who buy in demand driven locations and manage their properties carefully can still achieve competitive net returns. When combined with long term capital growth property remains an appealing option for income focused investors.

The most successful buy to let investors are those who understand the numbers clearly before buying and plan for both good and challenging market conditions.

4 Practical Tips to Maximise Buy to Let Property Returns

• Choose locations with strong rental demand – Universities, transport nodes, business corridors
• Keep a keen eye on running costs – Negotiate better property management fees
• Consider sectional title and smaller units – They tend to earn higher proportional rents
• Monitor vacancy trends and adapt quickly – A vacant property earns 0% rental yield

This might also be of interest to you: Standard Bank Repossessed Houses in Pretoria

The post Buy to Let Property in South Africa: What Returns Can You Realistically Expect? appeared first on Property Investment Sales.

Property investment can be a great way to gain long-term financial success. However, not every opportunity is profitable, or even legitimate. Unfortunately there are a number of people who make a living from clever property investment scams that serve to con the public out of their cash.

The first step in avoiding becoming a victim of a scam is learning how to recognise one…

Tip #1: Common sense:

The old saying still rings true that “If it sounds too good to be true, it is too good to be true”. Always remain slightly sceptical when it comes to any promises of high returns on your investment in little or no time. Scam or not, high returns always mean high risk.

Tip #2: Research:

When an investment scheme sparks your interest, be sure to do all your homework and research every detail of the proposal:

• Which company is making the offer?
• What is that company’s history?
• What is the company’s record or background?
• Who are the directors?
• What are their backgrounds?

Just as the internet makes it easy to scam people, it also makes it easier to spot a scammer, as a simple Google search can help you with your research into the offer. Be wary of company websites that have only been running for a few years, even thought the investment company claims to have been in the business for “decades”.

You can also speak to people you know who are frequent property investors to see if they have any affiliation or experience with the proposed investment scheme or company.

Tip #3: Be wary of email offers:

People who promote property investment scams often use the vehicle of email to entice investors, so be wary of anything that arrives in your inbox. Also be wary of telemarketers, as they are cheap to use for property scammers. Remember that reputable investment opportunities will never use telemarketing to promote their product.

Tip #4: Dig deep:

You need to look deeper into the property investment scheme to determine how exactly you will make money out of it. If the deal is very complicated, this is all the more reason to do so.

Tip #5: Going offshore:

If the investment scheme is offshore, investigate tax laws in that country and make sure that the investment is legal. Offshore investments can be a red light in a property investment scam, so be very wary of offers of this nature.

Tip #6: Take your time:

Remember that you have no obligation to invest your money. Property investment scammers often apply pressure to the investor and try to get them to sign in a hurry. This means that the investor won’t be able to do the necessary research and investigation. If the investment backers seem to be in a great hurry, your best bet may be to run quickly in the opposite direction.

Tip #7: Careful who you trust:

An “affinity fraud” is the name given to backers who use your race or religion to create some kind of affinity with you, and they pretend to have similar beliefs and culture. They get you to trust them, before hooking you into a scam.

Some con artists will actually pay you out some money at first, gaining your trust and gaining new investors. As they have enough victims, payouts will soon dry up and they will make off with their ill-gotten gains.

Tip #8: Professional assistance:

Before you sign anything, enlist the help of a financial advisor or accountant to go over the paperwork and have a lawyer read the terms and conditions and other relevant documentation.

When in doubt, visit a financial advisor at a recognised financial services provider. If anything, they will be able to provide you with alternative, legitimate investment schemes that won’t leave you high and dry.

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When it comes to property investment, most people consider buying “safe” properties such as vacation homes, property in high-traffic business areas, houses in popular suburbs, apartments in the city core, and other similar investment options. However, these are not the only property types that will help you increase your assets over time.

If you are considering investing in property, how about buying something more unusual? In many cases, these “unusual” options are no less risky than any other run-of-the-mill option. Listed below are 5 unusual property investments that, if anything, are sure to get your imagination going when considering your options for property investment.

Plantation pine forests

Investing in farm land can be risky business, as agriculture is dependent on a number of uncontrollable factors such as climate conditions. In New Zealand, however, there is a long history of pine forest plantation and the expected tree yield and the date the timber will be harvested are known up-front.

Additionally, the forest will be insured against fire and other risks. Reaping the rewards from this investment can be a waiting game, as a full plantation cycle takes about 30 years. If you can’t afford (or don’t have the patience) to wait this long, selling your shares at anytime is a viable option.

Green living

With the tangible effects of climate change around the world, coupled with a growing environmental consciousness, the construction of eco-friendly housing and building is on the rise. Eco-friendly building initiatives include the installation of double pane windows, solar water heaters, low-flow plumbing and fire sprinkler systems.

This list is by no means exclusive – there are so many new eco-friendly developments emerging everyday and some houses are even 100% self-sustainable in terms of energy and power. These days, being eco-friendly does not mean sacrificing comfort and convenience. Developing an eco-friendly property may be slightly more expensive in the construction stage, but it also means a higher selling price for the sustainable value of the green initiatives.

Re-purposed housing

When you invite guests over for a dinner party, wouldn’t it be a great topic of conversation to point out that the home they are dining in used to be an old warehouse, museum, general store, or fire station? Or when clients come into your office, wouldn’t they be interested to see the 100 year-old post box that is still in your office from when the building functioned as a post office?

Refurbishing and re-purposing existing real estate can create real estate that is full of character and will sell for a higher price accordingly. An old church can be remodelled into a beautiful and unusual home, with features such as stained glass windows and other existing architecture.

In terms of decor, the home interior can become an extension of the theme, with pews as breakfast table benches or chalices as magnificent centrepieces.

A holiday home with a difference

Beautiful properties in the countryside or along the coast almost always make for good investment options, particularly if they are near to tourist and other attractions. There are also real estate investment options that fit the aforementioned criteria, but also offer a unique holiday experience.

One example is a yurt cottage, which is simply a modern hut which has an exterior that looks like a tent. Inside the hut, however, is everything you need to have a comfortable holiday but still feel like you are experiencing the natural surroundings first-hand.

Creating your dream castle

It’s the stuff fairytales are made of – investing in a one of the hundreds of castle found in Europe and around the world. Let your imagination whisk you away to the princes, knights and princesses of your childhood. No matter the size, a castle conjures up ideas of adventure and prestige, and most come with exquisite views.

These are but five suggestions for investing in unusual property. To find an investment property that suits your purposes, be sure to stick to a clear budget and find a place that truly holds your interest.

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Some of these properties may seem ideal except for the fact of their weird whereabouts and it is a good idea to keep the following tips and advice in mind when you are considering buying or renting one of these properties.

What is a ‘strange’ location?

There are many different areas or types of location that could be referred to as ‘strange’.

It is important to remember that the concept of strangeness is a subjective one, meaning that what one person considers odd and unliveable would be a dream come true for another individual.

If you think a property is in an odd location, get a second or even a third opinion from friends, family and other professionals involved in the real estate industry.

The following are just a few of the odd areas that you may have to consider properties in.

Secluded areas devoid of other people and buildings

When you drive through the country side between cities, you may have noticed an odd little house here and there with nothing else around it for miles. This would not be so unexpected if the property had farmland and several barns surrounding it, but standing alone it is a strange sight.

On hillsides right next to highways and other major roads

These types of property are more commonly viewed and are also considered quite strange. There are some magnificent homes built on the edge of the highway whose only view is the highway itself.

Right next to airports and landing strips

When you are coming home from a holiday or business trip and your plane comes in to land, have you ever marvelled at how close you come to surrounding houses?

You can see their swimming pools, their braai area, the laundry hanging in the garden and you know that they must surely be able to hear and even feel the vibrations of the plane.

In the central business district of a city

Another strange and somewhat uncommon location for a house is in the CBD of a city.

While there are many warehouses, factories, high rise buildings of offices and businesses of all kinds, you do not often see family homes.

What are the advantages of purchasing a house in a strange location?

• The house may be going for a good price because of the strange area
• If the house is in a secluded, quiet area, it may have a larger garden, more space or a quieter feel than any other areas
• The house may be nicer than many other houses in a bid by the owner to get someone to buy or rent it

What are the cons of houses in strange locations?

• The house may be further away from your place of work, your child’s school and your friends and family
• If in the central business district, next to the highway or airport, the area may be incredibly noisy and disturbing
• If the house is in a secluded area, you may be very far away from the nearest hospital or medical facility
• If the house is in a secluded area it may be somewhat unsafe because of the lack of policing and neighbours

What you should keep in mind when purchasing ANY property, regardless of its whereabouts

1. Never buy a property unless you have seen it in person more than once
2. Never buy a property unless you have inspected the inner workings and made sure that there are no hidden problems and flaws
3. Never buy a property that does not have adequate security
4. Never buy a property that does not fulfil your needs and requirements
5. Never buy a property that is too far away from the areas in which you work, your children go to school and you socialise and spend time
6. Never buy a property that needs work that you do not have the time to complete or the money to pay for
7. Never buy a property that you cannot afford

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You will not have to worry about making specific plans for your yearly holiday or missing out on affordable accommodation or on the best destination.

In some cases, you can leave some of your belongings at your timeshare so that you do not have to worry about moving them back and forth with you every time you go on holiday.

HOWEVER, KEEP THIS IN MIND:

Many people end up regretting the time share that they have bought and are now trying desperately to get out of it. It is incredibly important that you purchase a timeshare that is right for you and that you can afford.

Checklist for buying timeshare

The following checklist will help you to make sure that you are making the right choice when it comes to buying your timeshare.

Think carefully about the area that you buy your timeshare in

Is there a particular area where you and your family always go for your holidays? If you have visited the area a number of times and you are very happy with your holidays there then it is a good idea to buy your timeshare there.

Buy a timeshare that is the right size

Keep in mind that your family may not have grown in a few years’ time. If you are thinking of having more children, go for a timeshare that is big enough to accommodate all of your immediate family with some room left over for your children’s friends or for other family and friends.

Make sure you can afford your timeshare

Make sure that you can afford the yearly or monthly payments on your timeshare with going bankrupt. Keep in mind that the fees may go up in price from year to year and you should find out how much they are set to go up by.

Would you be assured of getting a holiday time that would suit you?

Make sure that you will be assured of getting a holiday time that suits your schedule and your children’s school schedule as well. You want your holiday time to fit around your schedule and not the other way around.

If your usage dates are set, would you be able to make it every single year?

If your holiday dates are set in stone, would you be able to make the same date for the same length of time every single year? It is very difficult to commit to something like that for years in advance as you never know what is going to change before then.

If your usage dates are not set, how early would you have to book your dates every year?

You want to make sure that you are not in a situation where all the good dates have been booked for months and months in advance and you area left with times that you can’t actually make.

• If you are buying through a broker make sure that he or she is licensed
• What is the maintenance fee and would it go up every year?
• Does the timeshare price match the market price of property in the area?
• Do some research to be sure that you are not being asked to pay a price that is too high
• Make sure you see the unit in person before you purchase it

Follow the above points carefully to make sure that you purchase the right timeshare for you and your family. You want to be sure that you have many years of holidays to enjoy in a perfect location.

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You do have a very good chance of saving your home from being repossessed if you act quickly and if you seek advice from the right people.

You have several options of courses of action to take to stop your home being repossessed if you have been issued an eviction notice. The following tips and advice will help you to go about this difficult process the right way to ensure that you have the best chance of keeping your home.

Tips on stopping your home from being repossessed

• Seek professional advice

From the first time that you miss a payment on your home loan or bond, you will probably receive a warning from your financial service provider. As soon as you have missed a payment or have begun to have difficulty repaying your home loan or bond, you should find a debt counsellor who can help you to manage your debt and to make sure that you make all the necessary payments and still cover your essential living costs.

Your debt counsellor will issue a letter to your financial service providers and explain that you are under consolidation.

As long as you stick to the plan that your debt counsellor has laid out for you, your creditors will not be able to repossess your home or take any other legal action against you.

However, if you have already been issued an eviction notice, you should find a legal representative and you should immediately go to court to fight for your home.

By law, a financial service provider can only repossess a home as a very last resort. If you can give the judge a reason to see the situation in your favour, your home should be safe from repossession.

It is absolutely essential, however, to make sure that you keep up with your loan or bond repayments from then on as you do not want to find yourself in the same situation again.

• Sell your house

If you cannot fight the repossession and eviction notices, you can try to sell your home immediately for cash.

There are many companies who specialise in buying homes as they are for cash within a day or two. You can contact one of these companies and they will buy your home exactly as it is for cash. These companies do not classify themselves as estate agents so they do not charge you commission for the sale of your house.

They will buy any home in any condition or state. One such company that you can consider contacting if you want to sell your house very quickly to avoid repossession is Easy Home Sales.

You can find out more information about them on their website www.easy-home-sales.co.za.

Whatever option you choose, it is essential to understand your rights and obligations and to always read the fine print on anything that you sign or agree to.

It is also necessary that you understand that a financial service provider is well within their rights to take legal action against you if you do not make your loan or bond repayments with interest.

You should always do your utmost to pay the money that you owe and at the first sign of trouble you should contact a debt counsellor.

If you do not want to contact a debt counsellor just yet, you should talk to family or friends. Many people are too embarrassed to open up to the people close to them when they are in financial trouble. It may be difficult, but it will definitely benefit you to confide in people and seek guidance and advice.

You may be surprised by how eager your family and friends will be to help you.

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Most real estate companies offer valuation reports of potential customer’s properties, and with their experience in the industry, you should get an accurate idea of what your property will bring in.

What is a property valuation report?

A property valuation report is a quote on how much your property is worth. Most property valuation reports are done by agents from real estate companies who have many years of experience in the business and who know very well what people are willing to pay for different properties.

A property agent will take into account a myriad of factors when calculating what a property is worth. Some of the things that they will look at before giving you a quote include the following:

• The amount the property cost being built (if you built it) or the amount you paid for it when you bought it. This number may not play a huge role in the decision making process as even if only a few years have passed since the last quote the property could have changed immensely. The area could also have changed and the market itself may have gone up and down several times in the period between sales.

• The size of the property and its pros and cons. Obviously, the amount of bedrooms and bathrooms in a property is one of the most important factors affecting the value of the home. Generally, the larger the property the more expensive it will be. However, this is not always the case as a small bachelor apartment in the city centre of Cape Town could be around the same price as a two bedroom apartment in Milnerton. Other things that will add to the value are the number of bathrooms, the size of the rooms, whether there is a balcony or a garden and whether there is a swimming pool, secure parking and any other features.

• The area that the property is located in. This is a very big factor in deciding the value of a property. The safety, the condition that the other properties are in, the crime rate, the proximity to good schools, shopping centres and other amenities have a huge influence on the value of the property.

• The quality of the property. If the property has new or really well maintained flooring, plumbing, wiring and everything thing else that makes it work, the value of the property will be higher. A ‘fixer-upper’ will be worth a lot less than a beautifully finished home.

• The market at the time. Because the property market goes up and down all the time, it definitely affects what any seller will get from their property. If you are trying to sell within a low market you will have to settle for a lower valuation than in a high market.

Why is it important to get a property valuation report?

When selling a property you do not want to waste your own and anybody else’s time by advertising your property for more than it is worth.

You will attract the wrong sort of buyer for your property and they will be unlikely to be happy with what you are offering.

It is always a good idea to get an accurate property valuation report so that you can advertise at the right amount, attract buyers that might actually want to put in an offer, and so that you are not disappointed by finding out that your property is worth less than you believed it to be in the beginning.

Where can you get property valuation reports?

Most real estate companies will offer free property valuation reports. Contact companies like Pam Golding, Rawsons and Seeff for guidance and advice.

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What is a late estate property?

A late estate property is a home or piece of real estate that is owned by an individual (or individuals) that has recently passed away. It may have been left to someone else or there may be no relatives to inherit the property or the deceased owners may have left no stipulations whatsoever about the place.

The perceptions of a late estate property

There are several misconceptions and ideas about what a late estate property is like. Many people view property that is part of a deceased estate as a very good buy. If often incites a lot of excitement among potential buyers and sellers find themselves approached by individuals who believe they might be receiving a very good deal by buying the property. This is not always the case. In many cases, the new owners are not willing to sell at all or are not willing to sell too quickly. This can mean a long wait and a lot of negotiation for potential buyers, much of it fruitless a lot of the time.

The other misconception is that property that is part of a deceased estate is old. The idea of a new townhouse or apartment as part of a deceased estate is not what comes to mind when potential buyers think about a late estate property.

Advantages of purchasing a late estate property

One of the best parts about late estate property is that it is often situated in a good area, for example a safe and leafy suburb close to the centre of a vibey city. Any seasoned property expert will tell you that one of the most important aspects of any property that you are looking to buy is the area it is in. Safety, standard and quality of living and proximity to schools and shopping centres are all important factors that affect the decision of most potential buyers.

Often, late estate property requires some work and maintenance. This means that the property represents a bad property in a really good area, which means there is an opportunity to fix the property up somewhat and sell it for a profit, or live in it knowing that you have saved money in the long run.

If you find a late estate property that you are very interested the best situation is that the new owner of the property is very eager to get rid of it. This would be great for you because it means that the sale will go through quickly and that they will be likely to accept a lower price. You could save money and have the property in your ownership in a very short time.

Many times late estate property will be sold through auction. This is a great way to buy a property for a lower price because instead of having an extortionate price set by the seller, the potential buyers decide what they are willing to spend on the property. Usually the only late estate properties that will not be sold through an auction are those in rural areas.

Property belonging to a deceased estate is usually quite abundant. There are thousands of late estate properties up for sale every year throughout the country. It is always a good idea to get professional advice from your attorney before making any decisions.

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At a certain point in almost every individual’s life, they will look into buying a property. Owning your own home or owning a property as an investment is a great achievement. Many people save for most of their lives or spend the majority of their lives paying off loans for a property. This is because properties and houses are incredibly expensive. The majority of people throughout the world cannot afford to even pay off a loan for a property or loan while almost nobody can afford to purchase a property with cash.

What is a repossessed home or property?

Most homes and properties that are sold through auctions are repossessed. Because most individuals need to take out a loan with a financial service provider to finance their properties and homes, and because the financial situation of almost every individual is so unpredictable, there are many cases of homes and properties being repossessed. A financial service provider will want to see that a prospective client has a steady, reliable income that will cover their essential living costs as well as their loan repayments and interest. However, many people find themselves unable to afford their loan repayments because of losing their jobs or having an unexpected expense (like a vet bill or something similar) crop up.

Once an individual has missed a payment or has not paid a loan repayment in full or on time, the financial service provider who financed the loan will repossess the property. The financial service provider will usually hold on to the property for a short period, allowing the individual to try to make the missed payments, but if the individual does not make the payments the bank will sell the property or home on to make up their lost money.

Describing and explaining a repossessed home is significant in this context because the majority of homes for auction are repossessed properties. The financial service provider will either auction the property off themselves or hand it over to an auctioneering house to sell it for them. Aucor is one auctioneering house that auctions off properties for financial service providers. Standard Bank sells their own repossessed properties from their website My Roofs.

Buying property and houses pre-auction

Usually before an auction, homes and properties will be rated in terms of how popular they are with potential buyers. Houses that are thought to bring in more money will go ahead for auction while lower rated properties and houses might be sold off pre-auction. This is often an area where property seekers will save money on purchasing a home or property. The best way to find houses and properties pre-auction is to look for auctioneering houses or branches of financial service providers that auction off houses and properties.

Contact these businesses or organisations and ask them whether they have some properties or homes that they may be willing to sell pre-auction. It is also a good idea to keep up to date with the houses and properties that will be coming up for auction in the area (or areas) where you are looking to buy. Inspect the property and look carefully at the advertisement and if you are interested contact the owner to see if they may be willing to sell the property pre-auction. Many owners will be very happy to get rid of a property sooner rather than later and this means that you can negotiate the price with just the owner rather than having to compete with other potential buyers.

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The way you choose to finance it, and the property that you choose, will affect your financial and personal future for many years to come.

What is a bond?

A bond is a debt instrument that companies, governments or organisation use to raise money. This type of security is, in effect, a contract between the creditor and the debtor that states that the bond will be paid back after a certain amount of time. There is also interest, at fixed intervals, that must be paid to the holder of the bond.

Unlike loans, bonds can be traded. Once you have bought a bond, you can sell it to a financial service provider in exchange for them financing your property. Very few bonds work on a fixed interest rate, but finding a bond that does is always your best bet for financing a property. This means that your interest rate will not be able to skyrocket and there will be no risk for you.

Paying in cash for a property

If you have enough capital in available assets (like stocks etc.) to purchase your house without a bond, mortgage or loan, you will avoid paying interest and you will therefore save money (known as a return).

Having a bond versus paying cash for property

You may immediately think that buying in cash is better for the following reasons:

• If the interest rate on a bond is 8%, for example, you will be saving that 8% by paying with cash.
• The home will be completely yours from the beginning rather than being owned by the bank.
• You will not have to worry about making payments each month to pay it off.
• If you sell or mortgage the property, you will receive the full amount of money it is worth.

However, you must consider the following:

• If you have rather put your available assets into stock and other investment ventures, would you make more money than you are saving by paying in cash?
• The property market is unpredictable and fluctuates regularly. If you were to try and sell it in the future, could you be sure that it would be worth more or even the same amount as what you paid for it?

Something else to take into consideration is the question of whether you are going to put all of your available assets into a property. What if you require the money for something else in the future? You could, of course, mortgage your home at a later date for money, but having a bit of capital tucked away as an investment you will probably feel more at ease.

To sum, if you can afford to buy a house in cash and still have some assets left over, it is definitely best to avoid getting into debt if you can. If you cannot, however, it is a good idea to look for a bond that has a fixed interest rate. Owning a property is a major asset and investment, providing you choose the correct one. Take your time, consider your needs now and in the future, research the market, the area and anything else that might affect the value of the property you are looking to purchase.

There are, of course, many other ways to finance your property without purchasing bonds or paying in cash. You could get a mortgage on a property that you already own to finance another property, you could get a loan from a financial service provider or you could use a combination of different routes to purchase the property.

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