- -

Property Investment During An Economic Recession

The Story

What is economic recession?

This term refers to an extreme weakening in the economy which affects economic activities across an entire region. A recession is characterized by slowed-down activities that are essential for economic growth. When there is a decline in employment, consumer spending and industrial production the economy is negatively affected.

Home-loan Interest Rates 

Currently, the home-loan interest rate is 7% which is the lowest in over 40 years. But what does this mean for investors? Property buyers can expect to pay lower monthly bond repayments towards their overall loans. This is especially beneficial when setting up affordable rental fees that will cover all costs and also provide renters with a positive cashflow. The decreased interest rate also encourages people with good credit scores to buy property through borrowing money from banks or financial institutions. This is great for the economy and investors as well.

Property Value During Recessions

One of the most common effects of a recession, in this case also a pandemic, is the drop in property value and prices. It has also been said that while such times strain the masses, the wealthy increase their wealth. How do they do it in terms of property? As more and more people lose their job during recession, some decide to sell their properties at a time when property values are prone to be low. Experienced investors then seek out and seize such opportunities. To get great ROIs, th ey buy cheaper now and then sell for more later.

Effects on Tenants and Renters

Covid-19 has affected everyone, including tenants that lost their jobs or got salary cuts over the past few months. Particularly with residential rentals, the number of tenants in good standing has decreased due to rising percentages of financial lack. On the other hand, some tenants have taken initiative by discussing progressive, payment plans with their landlords for the coming months ahead. And the other reality is that there’s still more demand for accomodation than there is supply.

But what are your options as a landlord? The best thing you should do now is strategize, plan and be creative in your efforts to get tenants into your property or help those that are already putting bread and butter on your table by negotiating payment terms. Even though renting seems risky now, there are ways to get around investing in property fairly and successfully during covid. Consider negotiating with your tenants,  getting compensated by the government fund, using different property strategies to diversify your portfolio etc.

Finally, property coninues to be one of the most trusted investment options. There are rules, tools and strategies that are working for other property investors and they can work for you too. It starts with getting the right education to start heading in the right direction. Property investment has real benefits and is not only exclusive to those with a lot of money. Anyone can do it.

If you want to find out how you can use property to create streams of income, become financially free or elevate your investment register for our free property investment webinar.


Rent-To-Buy Real Estate In South Africa

The Story

If you desire to test out a house before deciding to either buy or rent it, then a rent-to-buy property is the way to go.

Definition of rent-to-buy

Just as the name suggests: An owner agrees to sell their property to a tenant on the condition that they agree to sign a fixed-term contract for renting. Buying the property begins after this contract has been fulfilled. Also, a rent-to-buy contract can last for any period. However, owners usually set it up for two years.

Reasons tenants opt for this

Experiencing a product or service before deciding to get it permanently is a concept that also applies in property. Some renters want to assess if a property caters to their lifestyle and whether they can see themselves staying in the place or area for a long-term. For newlyweds and starter families, this is a more fitting option since they want to explore until they find the right home. Their property-buying decision is influenced by location as well as the following:

  • The types of amenities that are nearby
  • What the public transport system is like in the area
  • Whether the area is safe or not
  • What the schools in the area offer
  • The existence of other young families in the area

In terms of judging the property itself, these tenants consider whether the size suits the lifestyle of their family. They judge the space in terms of their interests and activities (will they have enough space for their future children to play, will there be space for their pets etc.)

One other reason tenants choose this option is so that they’re able to save up for a bond in future. In the meantime, they rent until the buying process begins because it is more affordable. By the time they buy they would have saved up enough money.

Reasons owners opt for this

Maintenance is a key challenge for, many if not, all owners that are renting out their properties. Having a rent-to-buy option in place motivates tenants to also maintain the property well since it will be advantageous for them when they buy it.

Though the concept is simple, both the buyer and tenant need to understand what the agreement is all about. A fixed, unchanging contract must be employed so that all parties agree with the terms and conditions indicated. Equally important, the contract needs to be simple to understand and must include details of everything. Among other things, the lease agreement should contain:

  • The duration of the lease
  • If there are any fees that apply to the agreement
  • The title deed of the property once the lease ends
  • What will happen if the tenant doesn’t buy the property

It is crucial to consult with a lawyer if you are an owner who is interested in this option. The property market is a field of possibilities and there are many ways to enter, including rent-to-buy.

If you want to know other ways you can enter into real estate, register for our free property investment webinars.


Commercial Property Investments – Advantages and Disadvantages

The Story

Is Commercial Property Worthwhile?

Commercial property refers to a specific type of real estate property that is used for business activities. This definition also includes large residential properties used for rental purposes and land that is assigned for use to make profits.

“The designation of a property as commercial has implications on the financing of the building, the tax treatment, and the laws that apply to it.”

Commercial Property vs Residential Property – Which One Is Better?

In terms of investment, there are less risks with buying and owning commercial property. The returns on investment are higher with commercial structures since an investor can customise and adjust the building for optimal use. However, tenants of commercial spaces have much higher initial expenses than residential property renters. Excluding the above mentioned, investing in a commercial property offers more benefits than those presented by a residential property.

A Higher Income Possibility

Logically, a bigger property has far more potential, in terms of money and value, than a smaller one. A Commercial property’s bigger square meter size means that in addition to providing space for a greater number of tenants, the annual profits are also higher than other property investments. But the ROI is influenced by different factors. A clear example is comparing commercial spaces intended for different uses – multi-family properties are lesser against suburban office spaces that are higher.

More Tenants Means Lower Risks of Financial Loss

Due to their size and nature, residential investments frequently put a restriction on the number of tenants you can rent the space out to. This is challenging for investors seeking to scale up their financial returns. There is also uncertainty with regards to maintaining a steady flow of revenue or money received by the investor with residential properties. On the other hand, a multiple-occupancy building is ideal for investing - it carries a low income-loss risk. Even when there are vacancies, the other tenants continue paying towards all the operational costs. One more advantage about commercial spaces is the responsibility upon tenants – they need to pay for key expenses on the property as well as their standard rents required. Some of those expenses include building expenses, common area maintenance fees and net taxes.

Higher Equity Potential Created By Increased Cash-Flow From Leveraging

Commercial real estate allows you to increase equity by leveraging borrowed capital to invest it further with hopes that profits will exceed the outstanding interest. The results of this is getting a higher ROI rather than buying straight away.  Leases of commercial properties are usually more attractive because bank approval rates are greater due to the steady, high income flow such investing.

What Are The Negatives to Commercial Property Investments?


You can guess, just as there are negatives with every other thing in life commercial property investing also has a downside. That said, you need to consider all sides to this type of investing – all the pros and cons - before you decide to invest your time and money. Take some time to also establish whether this is suitable for you because commercial property investment is time-consuming and demanding. Being a landlord to one tenant can be demanding for some so renting out a commercial space means you’re managing multiple occupants. The other negative is that you cannot run the show by yourself - you are required to get professional help to ensure that the maintenance of your property is prioritized, and your tenants are satisfied. Lastly, buying these properties is expensive. Unlike other properties in the same area, you will likely need to have a higher upfront capital when you invest in a commercial property



Considering all that has been mentioned, though there is a higher ROI with commercial property investment it also consumes a lot of time and money. In the end, an investor must assess what they can afford as well as the resources they have available.

Are you interested in learning more about how YOU can invest in commercial property? Then register for our FREE webinar and learn effective investing strategies from our property experts at Riches and Beyond.


Retirement – An Inevitable Reality

The Story

The Retirement Reality

Simply put – retirement happens when someone who works leaves their job and stops working permanently or on a full-time basis. While retirement is inevitable for most of the working class, more and more people are still uncertain about their sustenance after leaving work. Some retirees have realised that having a grip on financial spending, a solid plan to live and invest are essential in ensuring security. Others are frustrated with the reality of being financially dependent - on their families or children - because their living funds are insufficient.

Popular Options - Living Annuity Or Retirement Fund

Any plan towards life after retiring must be created with a consideration for inflation. A retirement fund, usually administered by an employer, is an account where money is deposited continually by an employee for the retired to live post-work. Described as a financial product, a living annuity is whereby an individual consistently pays a specific amount so that they get an income later. There are many financial institutions offering these products, not to mention all the different options to choose from. Making your decision about which option to choose depends on your needs, living plan, effective spending style and the post-retirement financial goals that you set.

Property Opportunities For Retirees

Investing in property allows you to control your own economy and resultingly the quality of your life. The awakening amongst the number of older people using property as a means of sustenance and independence is spreading like wild fire, even to younger family members. For example, renting out a multi-let that gives you a positive cash-flow means that you are able to take care of yourself and family even in old age.

Whether you decide to invest in buying properties below market value to fix and sell or just renting out your commercial building to local businesses, a profitable property portfolio will make a big difference to your life and the generations after you. Property investment doesn’t require you to be rich to start but you need to:

  • get the proper education,
  • establish your needs and property strategy to meet them,
  • learn from successful property mentors, and
  • follow a clear plan when you invest

Possibilities Becoming Reality

Just imagine yourself, in old age, being financially free and doing what you only dreamed about. What does that life look like? What does it mean if you could financially boost your children as they begin undertaking adulthood-related projects? Would it make you happy if you could invest in the future of your grand-children? Only you can answer these questions since you hold the answers to them.


Our shared desire is to work hard now so that we can grow old peacefully; without worrying about financial security. But the truth while you are planning for your retirement someday you also need to work smart and plan ahead. It has been repeatedly said that – failing to plan is certainly planning to fail. Designing your future starts today

Register for our free property investment webinar to learn about other options to ensure your financial security.


5 Financial Lessons of 2020

The Story

If 2020 has taught us anything, it's that you should always have a back-up plan - just in case things go...awry.

We've witnessed the global catastrophe where many have lost their jobs due to the coronavirus. Millions of South Africans have lost an income during the last few months - and those who still have jobs have had to endure their salaries being minimised. With a reduced or no salary, people have had to resort to finding alternatives means to "get by". So, what are some of the financial lessons 2020 has taught us?

Lesson 1: Live within your means

With minimised to no salary, South Africans had to evaluate and determine what was important. While cutting down costs seems like an excruciating challenge, knowing the differences between your needs and wants - especially when it comes to your budget - is helpful when it comes to your financial goals.

Sit down and investigate, evaluate, and inspect your monthly bank statements. If you're not big on paper, there are helpful apps that automatically calculate the percentage you're spending on food, entertainment, essentials, etc. The next part is challenging but necessary. It's not just about cutting down on things you don't need but "downgrading" on a lifestyle you may have lived before.

Lesson 2: Saving for a rainy day

No one should ever doubt the importance of having a "rainy day" account. With most people losing their jobs or relying on payment benefits from the government, many have dipped into their savings as a relief.

It's never too late to start saving but, how much should you be saving? The rule of thumb is that at least 20% of your income should be saved. If the number sends you into an immediate panic, don't worry. Over the years, people have developed various saving strategies that don't leave them starving at the end of each month. One solution is looking at your expenses each month and using that number as a savings goal. Whether you are creating a rainy day account for 3-12 months is up to you.

Lesson 3: Having a passive income

It's no secret that in South Africa, having a single income is not viable. The cost of living in the country is quite high and even if you and a partner are bringing in a stable income - having a passive income could financially benefit you both.

Your passive income could be anything from freelancing to investments. Research to find out what you are interested in and find a way to monetise it. With all the energy and passion, you could turn your passive income into something full-time.

Lesson 4: Job security is rare

Unfortunately, many South Africans learned this lesson the hard way. No company or industry was immune to the global pandemic. Companies with longstanding history succumbed financially and had to let go of employees to survive every month. These heartbreaking revelations have taught us that job security is not always stable and that a back-up plan is always important.

Lesson 5: Take care of your future

These last few months have not only had us thinking about the present but also had us pondering about our futures - financially and emotionally. What kind of legacy would we like to leave behind? Our dreams? Career? These financial lessons have also taught is that stability is rare - job and emotionally - and that it is truly up to us to create our unique path.

If you have been wondering about financial freedom, then now is the time to act on it. With the right guidance, you're able to build a financial legacy for you and your family - building the life of your dreams. Are you ready?


Is An Early Retirement Possible Or A Pipe Dream?

The Story

The traditional career path usually goes: study, find a steady job, and retire at age 65. However, most people in the workforce are looking for a lifestyle that is calmer than their parents - and their parents before them - have experienced. Today, employees are leaving behind the hustle of the 9-5 and retiring early to travel or live by the sea.

It's how the FIRE movement was born. FIRE (Financially Independence, Retire Early) was an idea that was established online in the 2010s. The "philosophy" gained prominence with an online community, where millennials discussed their disdain on waiting 40 - 45 years to retire - wasting their best years working towards someone else's dream (and contributing to someone else's profits).

Since then, there have been camps, conferences, and podcasts on how to join this movement.

Can you retire early in South Africa?

There have been critics. Some have criticised the strategies used and in a country that is experiencing a high cost of living and debt; the question is if South Africans can retire early? You can if you have all your ducks in a row.

Work out your retirement plan

Unfortunately, it's not as simple as calling it quits whenever you are ready. Proper planning needs to be put in place if you're looking to be comfortable during your early retirement.

You need to start with the end in mind. This means working out the desired age you'd like to leave the workforce. Once you've established this, evaluate how much you have currently saved and how much is needed to live comfortably. Now is the time to take a look at your finances. Daunting task? Probably, but becoming familiar with your financial situation is important. 

Work out your expenses

Financial advisors will tell you that it's good practice to always take a look at your monthly statements, and evaluate where you may be overspending. This is an important step for retirement as well. To properly determine how much is needed for early retirement, you need to cut down on all those "unnecessary" expenses.

Priority is paying any debt or credit you owe (store accounts, loans, etc.). The next step may be a little brutal - it's looking at where you're spending the most cash. For some, it's entertainment. This includes dining out, movies, concerts, etc. We're not saying you should starve yourself from these delights, but do curb your spending habits. Instead of eating out once a week - try once or twice a month or try and substitute these pastimes with a less cheap activity or something free.

When you cut down on these expenses, you'll have more clarity on how much you may need for your early retirement.

Becoming financially savvy

In South Africa, a single stream of income is no longer viable. This is an unfortunate reality, even more so during the recent pandemic crisis. Many South Africans who have relied on their salary, have had to develop side hustles to bring in a little extra cash flow for the month.

Not sure what your side hustle is? Investing in property could be a great start. With plenty of research and training, you could become successful and possibly turn your side hustle into something full-time.

Here’s how you can retire smartly

If you are considering a home by the sea, it's time to be smart about your money. Sit down and map out where you want to be and the life you'd like to provide for your family.

To discover a life of financial freedom, join our FREE webinars to find out how you can get started on your new journey.


4 Reasons To Consider Financial Independence

The Story

Job Security

If 2020 has taught us anything, it's that the concept of job security is fleeting. During the first month of lockdown, it's been reported that 3 million South Africans lost their job. This devastating loss means that there are households who lost a sole income they have relied on. The flip side of this is that humans are resilient and people have looked towards side hustles and investments to help power them through the storm.

With financial independence, you're not reliant on a salary from your employers - which could be taken away from you at any time.

Work/life balance

We work to provide a stress-free life for ourselves and our family. We're so focused on this goal that our work suddenly becomes more than just a 9-5 - it overtakes your personal time. 11% of South Africans are stressed out and this mostly stems from work-related issues.

With financial independence, you'll likely have less stress because you are no longer worried about working long hours to make enough money to survive. The extra money you make could go towards a nice vacation.

Early retirement

Wouldn't you love to retire earlier than planned? Of course, you do! Many South Africans are considering leaving the workforce earlier than expected because they want to enjoy more of life - especially if they are free from financial obligations.

The average retirement age in South Africa is between 60-65 years but with the latest FIRE movement, retirement age can be as early as 40 years. So what do early retirees get up to? They have the chance to travel the world, spend more time with family or focus on cultivating their passion projects or new business ventures.

Entrepreneurial opportunities

Without the increasing pressure of extra financial obligations, you have the chance to pursue your dream business. While running a business will always be risky, you'll have more funds to get started.

What does it take to be financially independent?

The general assumption is that it may take years to achieve financial freedom but with the right steps, you could achieve this goal. Riches and Beyond as taught over thousands of students how to gain financial independence through property investment. With the right mentors - like our founders - you could find yourself on a beach vacation earlier than anticipated.

The Problem

How many of you have started the sentence, "If I win the Lotto..."? The truth is, we've all fantasised about a life where financial stress did not exist and we could live the life we have dreamed of.

The Solution

The good news is that financial freedom doesn't have to be a fantasy. With proper training and investment, you'll be on the path towards financial freedom in no time. If you're on the fence about starting your journey, here are four reasons why you should consider.