How debt can af­fect your prop­erty in­vest­ments

Weekend Argus (Saturday Edition) - - PERSONAL FINANCE -

Af­ter sev­eral years of sus­tained growth, the prop­erty mar­ket – both res­i­den­tial and com­mer­cial – has suf­fered se­vere losses as a re­sult of the global eco­nomic down­turn.

The global listed prop­erty sec­tor has de­clined by about 43 per­cent over the past year. As a re­sult, many in­vestors are con­cerned about the state of their prop­erty in­vest­ments.

Lever­age – the use of bor­rowed money – can greatly in­flu­ence the re­turns in­vestors can ex­pect from this as­set class. But al­though lever­age is a pow­er­ful tool when prices rise, it has the op­po­site ef­fect when prices fall.

At the next se­ries of meet­ings of the ac­sis/Per­sonal Fi­nance Fi­nan­cial Plan­ning Club, An­dre Stadler, the manag­ing di­rec­tor of Cat­a­lyst Fund Man­agers, will ex­plore the chal­lenges and op­por­tu­ni­ties within prop­erty mar­kets, and re­view how debt has con­trib­uted to per­for­mance.

Stadler’s pre­sen­ta­tion will cover the fol­low­ing:

The cur­rent fun­da­men­tals of the prop­erty sec­tor;

The pos­i­tive and neg­a­tive ef­fects of debt on a prop­erty in­vest­ment;

Some rules for in­vest­ing in prop­erty; and

How in­ter­na­tional de­vel­op­ments af­fect South Africa.

Stadler has over 15 years’ in­vest­ment and man­age­ment ex­pe­ri­ence in the prop­erty mar­ket.

The pre­sen­ta­tion will take place on Tues­day, Au­gust 18, at Belmont Square Con­fer­ence Cen­tre, Belmont Road, Ron­de­bosch. To book, con­tact Michelle de Power on 021 670 7800 or email­power@ac­

The meet­ing starts at 5.30pm for 6pm and ends at 7.10pm.

Mem­bers of the Fi­nan­cial Plan­ning In­sti­tute pay R80 to at­tend. Non-mem­bers pay R125. Stu­dents and pen­sion­ers pay R75.

To book or reg­is­ter via the club’s web­site, go to fp­

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