FAQ

Yes that sounds about right, and you can go for slightly higher priced units, but the cashflow returns are a bit lower and when times get tough the higher end of the rental market suffers. What the  Organic Growth Investors Club offers is hand selected investment properties and then offer a full management solution. You will get monthly reports on each property and we could give you a monthly combined report as your portfolio grows.

Yes It is ambitious, but very possible. By using the banks money you will get to your target a lot quicker. The basic premise here is that the power of property lies in capital growth, so buy as many small units as you can in great areas.

Eg: If you bought 1 unit for R 1 million and paid cash, you would get a cash return of R 8 000 is per month and you would gain value of about 10% per year ( i.e. R 100 000 wealth growth plus your rental income of R 96 000 for 12 months = R 196 000 in year 1 )

If you bought 10 units of R 600 000 each (like the Telford units in our hot deals list), put in R 100 000 on each property, your cashflow in would be approximately neutral per month in the first year and your wealth will grow by 10% per unit per year i.e. 10 times R 60 000 per year (R 600 000 growth in year 1).

Your rental income then increases in year two and bond repayments stay approximately the same. As time progresses the tenants pay off your bonds, you get increased cashflow and the benefit of a whole portfolio of properties growing in value.

Yes they are, but only under certain circumstances. The information we would need to be able to answer this question are.

1) What are your monthly earnings?

2) Are you self-employed or do you get a salary?

3) What are your current debt repayments ( clothing accounts, credit cards etc.)?

4) Do you own any property and if so what and how large are your bonds?

A Go to the investor toolkit page, which is found in the Organic Growth Investors Club members area on our website and download the Cashflow calculator.

You can then input numbers from our hot deals into the spreadsheet to see the effect of bonds on cashflow. R 100 000 deposit on a Northriding R 600 000 unit gives neutral cashflow. R 100 000 on a Northriding R 500 000 unit will provide positive monthly cashflow.