Investment Risk And Return

Our Investment Structure

Back to Property Investment Concept

In terms of a management agreement, Sirius will structure your commitment to a property investment on a turnkey basis as follows:

Sirius will source and facilitate the purchase of a property according to your individual preference for attributes, area and cost:

  • Funding from a reputable financial institution at a competitive interest rate will be
    obtained;
  • A tenant will be secured for the property;
  • Sirius will manage the arrangement on your behalf for a nominal monthly fee; and
  • Sirius will compile the appropriate disclosure in your annual tax return.

Investment Returns

There are three spreadsheets to look at in this example Excel file and figures can be manipulated to show various scenarios. Download the Excel file here.

The Risks

  • Can you accept no capital growth for 5 years?
  • Do you have R30 000,00 available per property for contingencies? This can be reduced by 25% per additional property.
  • Can you manage a 3% increase in interest rates?
These can all be easily managed through economies of scale. The more you own the lower your
risk.

More Links

Where does Sirius fit in?
Key Financial Indicators, Concepts and Principles
Seven good reasons for investing in a second property the Sirius way
Structure, returns and Risk