Why are so many young South African property millionaires going bust?

When studying what differentiates the rich from the rest, you will find that most of the rich have earned their wealth through EDUCATED property investments.

The EDUCATED buy-to-let property investor has been investing for years and has a decent growing cash positive property portfolio while the UNEDUCATED property investor is still chasing the eluding property wealth dream.

The biggest inheritance one can leave your children is not your property portfolio or your life time’s wealth created by your property portfolio but the EDUCATION and knowledge on how to invest in property.

“Education is the best provision for old age” – Aristotle

Property investors first need to learn the basic principles of property investment before they take the bold step to invest in property. They must first study the different buy-to-let property investment strategies, weigh up specialist opinions, keep abreast of the property industry news and property cycle trends for their property investment target market, read value adding property investment magazines and find real successful property investment mentors. Investing in property without EDUCATION is to gamble with your hard earned money with an uncertain outcome. Property investment education material is readily available at a fraction of the loss UNEDUCATED property investors normally make on their first property investment. 

Many inexperienced UNEDUCATED buy-to-let property investors, or should we rather say property gamblers, are seduced by promising glossy buy-to-let property investment brochures. They are disillusioned if the achieved rate of return on their UNEDUCATED property investment does not match the brochure promises, yet they are not prepared to invest in their property investment education. These UNEDUCATED property gamblers lose faith during low capital growth property cycles and are forced to sell their property investments, most of the time at substantial losses, or have their properties repossessed as demonstrated by the surging number of property auctions.

Most buy-to-let property investors focus on two main property investment strategies – Cash Positive property investing or Capital Growth property investing. Both strategies have their respective risks and benefits associated and very much depend on their specific property investment strategy, personality and personal affordability criteria.

I have studied many different buy-to-let property investment strategies and realized there is only one factor differentiating the UNEDUCATED property investors from the EDUCATED property investors – the price they are prepared to pay for the property. The only sustainable way to exponentially accumulate wealth through property investing is to always buy your property Below Market Value. It does not matter what your preferred buy-to-let property strategy is remember to “Always buy below market value”.

The UNEDUCATED buy-to-let property investor believes that Below Market Value properties do not exist or are difficult to get hold off, but the truth is that Below Market Value properties are in abundance, if you have the knowledge and education to find them, or better how they will find you.

Remember that only continues learning and consistently applied knowledge will yield the desired experience and results after you have mastered the detail buy-to-let property investment business principles and gained the knowledge and confidence to implement your specific buy-to-let property investment strategy and style.

Always first invest in your property education before you invest in property and always buy below market value.

Mitch Brandt

CEO

CashPlus Property Investments