Seeing that the investor does not require the rental income, it can be used to pay off a small bond, thus achieving greater capital growth as the initial investment outlay is significantly reduced. This process is known as gearing and is used worldwide by Investment and Financial Groups.
Gearing
Maximum gearing is above 60%, but to protect the investor from servicing the bond if interest rates should rise, BLUEZONE Property Investments utilises a maximum bond of 40%.
Maximum Return
By registering a bond on the property, the full income generated from the rental can be utilised to repay the bond, thus maximising your tax efficiency and return
View an example of a R100 000 investment.