In order to take advantage of the ridiculous share market prices a minimum amount of R 200 000 (ZAR) is required.
What are you getting for the R 200 000 ?
A portfolio of about 8 businesses and effective exposure to over R 200 000 worth of offshore property. I cannot effectively construct a portfolio with less than R 200 000 - I hope you will see this is an extraordinary opportunity and invest a lot more !!
Annual average dividends of at least 7% pa before tax (in hard currency) or R 14000 a year before tax (this will vary with rand exchange rates).
MASSIVE CAPITAL GAIN POTENTIAL - as illustrated on the spreadsheet on the home page.
Why am I getting more effective property exposure than R 200 000 ?
Because as per the spreadsheets on the home page you are effectively borrowing money overseas via the balance sheets of these companies. Unlike buying a single house for investment you don't have to arrange the mortgage and make sure you have a tenant. Interest rates and the availability of finance make this hard to do in South Africa. Often you have to subsidize the rental income every month. Our offshore investments provide a passive net rental income after borrowing costs.
The greater effective property exposure you have, the greater your return on investment when the properties go up over the long term.
