21/01/2026
Basic money concept too many people don’t understand.
Let’s say you spend R1,000 000 on a rental property unit, that you collect R2500 per unit, (10 units) that's R300 ,000 net /year= R1.5Million after 5 years.
Some people will say
"It will take you 5 years to get your money back"
Wrong, your money never went anywhere.
It's still there. You just transformed it into equity in a form of a house / stock/ asset
So many people think you spent the money, you didn't.
Not only are you making R300 000 year, but you still own the R1000 000 🏠 property, assuming it doesn't appreciate. In essence it took you 5 years to double your money (not just to make it back)= the R1000 000 for the property 🏠 + R1500 000 in profit 💰. So in total actually you have R2.5million
I find myself explaining this to a lot of my friends.
I mean it's not like once you make R1million back the house is gonna disappear, it's still gonna keep producing money.
And you can sell it at higher price anytime
Not to mention that you can refinance and take the money out using the house as collateral and buy another rental unit.
I hope I made sense