Great property investment opportunities are uncovered by those who are skilled to find & recognize them. This is who we are and what we do at Joburg Home Buyers.
We serve as a guide and partner for Investors wanting to capitalize on attractive Real Estate opportunities but who don’t have the experience or the time.
The 2 common ways of Investing in a Property deal are 1) Interest and 2) Equity.
Below is a comparison of returns for the Interest versus Equity approaches to Property Investing:
| Investment Structure: (DEBT) INTEREST | |
|---|---|
|
Purchase price |
R800,000 |
|
Refurbishment Costs |
R200,000 |
|
Total buying costs |
R1,000,000 |
|
After Refurbishment Value |
R1,250,000 |
|
Re-selling costs |
R150,000 |
|
Potential Profit |
R100,000 |
|
House Flipper Cash available |
R800,000 |
|
Investment required |
R200,000 |
|
Investor's Interest rate % |
12% |
|
# Months until Home Re-sold (Flipped) |
6 |
|
Investor interest earned
(R200k Loan x 12% x 6/12) |
R12,000 |
|
Investor ROI (R12k / R200k) |
6% |
| Investment Structure: EQUITY | |
|---|---|
|
Purchase price |
R800,000 |
|
Refurbishment Costs |
R200,000 |
|
Total buying costs |
R1,000,000 |
|
After Refurbishment Value |
R1,250,000 |
|
Re-selling costs |
R150,000 |
|
Potential Profit |
R100,000 |
|
House Flipper Cash available |
R800,000 |
|
Investment required |
R200,000 |
|
Investor's Equity/ stake in the Deal |
20% |
|
# Months until Home Re-sold (Flipped) |
6 |
|
Investor profit share earned
(R100k Profit x 20%) |
R20,000 |
|
Investor ROI (R20k / R200k) |
10% |
It’s clear that Equity investors assume more risk which is why they get to share in the more lucrative profits.
To take advantage of property investments like these join our Investor’s list by completing the form below. This will ensure that we only send you opportunities and deals that fit your specific criteria.
