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  How to invest in a Real Estate Investment Trust   As I said in my last article about Real Estate Investing , Real Estate Investment Trust or REITs for short, are a great way to invest in Real Estate. Real estate has been a popular investment among many people over generations. The idea of owning a piece of something tangible excited people. However, this was often only something afforded to the affluent. However, that is no longer the case. Image by Arek Socha from Pixabay What is a Real Estate Investment Trust?   A REIT is a company that owns land/ buildings that generate income. They can also finance real estate and earn an income from the interest charged in some countries. These investment vehicles offer a way to invest in the property market with little money. Benefits of a REIT?   REITs are often managed by good investment companies that offer diversification that you would struggle to get on your own. Their expertise helps mak...

Buy vs Rent? The Home Loans Story Home Loans are probably the most sought after loan in the world. Often difficult to get and expensive to pay. But is the extra cost worth it as opposed to renting? Let’s have a look! How long will you stay in the home? As pointed out by  Fidelity , one of the most important items to consider is how long are you planning to stay in the house? For a house to make money, you would need to have a timeline of 20 years or more. This is due to appreciation, bond costs, and maintenance costs. Over this length of the timeline, there is a benefit to owning rather than buying! Image by  Wokandapix  from  Pixabay Can you afford it? Affording a house is expensive! With most banks requiring you to have 3x bond repayment as monthly income. You or you and your partner would need around R30 000 in monthly income to be able to buy an R1 000 000 house. This high level of income has made it out of reach for a lot of South Africans! Even with our low-int...

What are Bonds? Should I invest in Bonds? Bonds, loans, debt. They have a reputation for being very safe with minimal returns. Is this true? What are Bonds? Should I invest in bonds? What is a bond? Bonds, loans, and debt are a type of investment where you buy the debt of a company, institution, municipality, or government. The return earned is on the rise in value of the bonds, as well as the yield/ interest rate paid. Think of it as you acting as the bank, you loan the money to Joe and he pays you back plus interest. Government Bonds are often considered the safest option as a government is very unlikely to default or not pay their debts. Companies or corporate bonds are often considered a higher risk as they could go bankrupt. What is the bond market? A bond market is similar to the stock exchange where bonds are traded. These markets bond markets are often available only to wealthy individuals and institutions. Where do I invest in Bonds? The Bond Market We know what the stock mark...