Buying property for equity appreciation
In episode 27, we go down a different path and talk to Arthur Peters a Business Economics lecturer at Nelson Mandela University, who buys property for equity appreciation instead of cashflow.
Arthur didn't start out as an academic - he dropped out of school because he wanted to know more about making wealth, and purchased his property in 1990 at the age of 22 in Mitchell's Plain, Western Cape, South Africa.
He still owns his first property, which he purchased for ZARR60, 000 (US$3,730) and now rents it out for R4000 (US$249) a month, which means that this property has paid itself back several times.
After buying the first property, Arthur decided to go traveling and also go back to school.
He moved back to South Africa in 2003; purchased his second property for R320, 000 (US$19,900) and now rents that out for R1,500 (US$94) per month to his mother.
He bought his third property in 2006 for ZAR1 million (US$62,170) in Gordon's Bay, Western Cape, which he started off renting out as a guest house, but now rents out to long term tenants.
Arthur is now focused on buying his fourth property.
