How buying from a developer and ‘rentvesting’ makes property investment attainable

People often use the term rent-to-buy, which refers to renting a property that you intend to buy at a later stage (if that was part of the rental conditions). This concept is sometimes confused with the term buy-to-let or buy-to-rent, which refers to buying an investment property and letting it out to a tenant. This enables the owner to have a tangible investment asset and to pay off the bond and expenses with the rental income.

Most first-time property buyers feel that the first property they buy should be their primary residence and that they can only start investing in property after that. As a result, they end up spending all their time trying to save up for a deposit and the extra costs of buying a property. The extra costs on a R1M property can easily add up to R60 000, which excludes the deposit. If you buy directly from a developer like Central Developments, you do not pay bond origination duties, attorney fees, nor transfer costs, so all the extra costs are included. You can therefore save quite a bit of money by buying directly from a developer.

You can save even more if you become a “rentvestor” and rent your primary residence rather than buy it. This will give you more disposable income, further enabling you to buy an investment property. Once you have an investment property that earns a rental income and potentially does not cost you any money, you can buy your primary residence. The equity that your investment property accumulates over the years can even assist you with the costs of your next property, be it your primary residence or your next investment.

A practical example of this for a property around R1M is as follows:

Buying your primary residence:

  • Purchase price R1M.
  • Once-off transfer duties and registration fees = +/- R60 000.
  • Bond repayment @ 7,5% over 20 years = R8 100 pm (0% deposit).
  • Additional monthly costs (levies, rates and taxes, water and electricity) = +/- R3 000.
  • Total costs = +/- R11 100 pm + R60 000 start-up cost.
  • Required total monthly income +/- R25 000 pm.

Renting your primary residence:

  • Average rental on a R1M property = R8 000 pm.
  • Additional monthly costs = +/- R1 000 pm (water and electricity).
  • Total costs = R9 000 pm.
  • Monthly saving as additional disposable income for investment property = R2 000 pm.

Purchasing an investment property:

  • Average purchase price R730 000.
  • From developer = all costs included.
  • Bond repayment @ 7,5% over 20 years = R5 900.
  • Additional costs (levies, rates and taxes) = +/- R1 500 pm.
  • Rental income = average R6 900 pm.
  • Monthly shortfall investment contribution = R500.

In conclusion, you saved R2 000 pm by renting your primary residence and have an investment property that costs you R500 pm resulting in a saving of  R1 500 pm.

“Thanks to Central Developments’ specialised Buy2Let investment team, I bought my first investment property in October 2019 at the age of 41. Although I was a late starter, they efficiently assisted me with some of the best investment options from their very diverse property development portfolio. Sixteen months later, and we are already busy with the fourth investment property, and I can finally start feeling better about my children’s university education and my retirement.”

Mr V Naidoo (KZN).

Buy-to-Let Investment Opportunities

The Madison @ Amberfield City – Centurion, Pretoria alt

Apartments selling from R5 900 pm and rental income from R7 200 pm.*

(Calculations based on a R20 000 securing deposit, 100% bond finance @ prime rate of 7% over 30 years).

Family homes selling from R10 700 pm and rental income from R11 500 pm.*
(Calculations based on a R20 000 securing deposit, 100% bond finance @ prime rate of 7% over 30years).


  • 90% Sold – last units now selling.
  • Six months’ FREE FIBRE.
  • Qualify for a Section 13Sex tax benefit. *
  • Bond finance assistance, tenant procurement and management services are available.
Lion Pride – Newest Mega-development in Johannesburg. alt

Three-bedroom family homes selling from R8 000 pm and rental income from R9 500 pm.*

(Calculations based on a 100% bond finance @ prime rate of 7% over 30 years).


Return on investment up to 10,5%.

Occupation mid-2021.


  • Full-title, enclosed houses in a secure lifestyle estate.
  • Three-bedroom freestanding houses from R1,2M (all costs included).
  • 0% Deposit, 100% finance available. *
  • Bond finance assistance, tenant procurement and management services are available.

Property investment away from home – should I only invest where I live?

Investing away from home

Isn’t it strange that when investing money, people will willingly invest their own money in the stock exchange, cryptocurrency, shares and other non-tangible investments, but when it comes to investing in property and using other people’s money to do so, e.g. bank finance or tenant rental, they are hesitant to do so if the property is not situated close to where they live or work?

Are you also one of those people?

One of the main reasons preventing individuals from investing in property is fear. For example the fear of making the wrong investment, of not knowing how it works, or of a tenant defaulting on their payment. The reality is that no investment comes without risk. With property, however, almost all of your risk can be calculated and mitigated to ensure minimal impact, should the worst happen.

Central Developments has been assisting investors worldwide for more than two decades to acquire property with step-by-step assistance and managing their investment properties through a hassle-free process and tried-and-tested system.

If you are an experienced property investor with a good support network and enough time to manage your own property portfolio, it could make sense to only invest in closer areas which are more accessible to you.  Most investors rely on a reputable property management company to handle their investment portfolio. This allows them to be property investors in the true sense of the word and to smartly build their portfolio by diversifying their investments – not only by product but also by province or areas within provinces where opportunities arise.

Unlike investing your own money in other types of investments anytime and at any age, investing in property and relying on bank finance, does have an age limit. Don’t let time catch up with you and let some prime investment opportunities pass you by.

“In 2009 I bought my first residential property in Midrand from Central Developments and one year later I relocated to Cape Town for work. I decided to keep the property which then by default became my first investment, sooner than expected. Since then I have bought five more investment properties from them and not being able to manage my properties myself, their rental management service has been invaluable in building my property portfolio whilst living far away, now in the UK.” – Mr A. Gunther

Is location still the biggest deciding factor when buying an investment property?

There should be a clear distinction in your mind when purchasing an investment property versus a property to be used as your primary residence. The only time when your decision should be based on the same principles is when you intend to buy the property as a buy-to-let investment at first and then occupy it yourself at a later stage.

Inexplicably, a large percentage of property buyers thinks that the popularity of a specific area will always remain the same. The truth is that it is not constant. As areas are developed, and new opportunities arise, it increases the popularity of some areas and decreases that of others. This has been quite common over the centuries as some areas develop and evolve while other decline. It, therefore, boils down to timing and being a visionary if you want to make money with property.

Great examples of this phenomena are Central Developments Property Group’s two mega-developments being built in Centurion and the Lanseria area north of Johannesburg. Being a visionary buyer in either one of these developments will guarantee you great investment growth. The location where these projects are being developed has always been popular, but giving them their own identity with multi-use accommodation, schools, a shopping centre, retirement and an all-round secure lifestyle, is what attracts a whole new generation of buyers and tenants. With the planning and development of smart cities, new business precincts and infrastructure upgrades around these developments, you will miss out on great investment opportunities if you think that next month, next year or the future is a better time to buy than now.

“Since I enquired through Central Developments’ Buy2Let investor division for my first investment property, I have never had to look any further. Their service was on point, professional and they could answer all my questions and uncertainties regarding property investment. I’m definitely starting my retirement wealth planning through property investment with them and plan to leave it as a legacy to my kids.” – Mrs Sofia Kunene (first-time investor)

Investing in property during uncertain times

“Prevention is better than cure”, that’s why now is the time for property investment.

If you are a property investor currently following the news and listening to all the different opinions by the economists, property experts and other financial institutions, you will know that there is a lot of speculation out there.

Typical trending topics of conversations include:

  1. What will the interest rate do over the next couple of years?
  2. Should I fix my interest rate?
  3. Property value, where will the best growth opportunities be?
  4. Is now the right time to invest?
  5. How stable is the tenant market during these times?

Be careful not to lend an ear to the hearsay of the market, rather speak to the reputable sources.

Whether you are looking for your first investment property, or you are an experienced property investor, the golden rule when investing should always be not to live above your means. Make sure that you put contingencies in place to assist you during uncertain times and unforeseen circumstances.  If you know that a possible defaulting tenant will impact your cash flow dramatically and you do not have surplus funds, you should consider taking out rental insurance as part of your contingency plan.

Is now the right time to buy an investment property? The answer is quite simply, yes. Would you prefer to buy property when the interest rate is high or when it is low? Low of course.  Interest rates will not remain at an all-time low forever so you should think about how much interest you are saving while it is.  This is an opportunity for you to have a larger disposable income to buy something better or even more than one property.

Be careful when considering fixing your interest rate. Also ensure that you buy property in an area with proven high demand for tenants.

Speak to the specialised buy-to-let investment division at Central Developments Property Group and get the best advice for the right investment opportunity.

“When you invest through Central Developments’ dedicated Buy2Let division, all the hard work and research have already been done for you because they know the industry and their properties are always developed with the focus on high demand. You have full access to all their property investment experience, expertise, support and promotional offers, so as an investor I don’t have to go hunt for the ideal opportunities – it’s handed to me on a silver platter,” says satisfied investor, Mr Hugo Lombard.

A booming buyer’s market in 2020 will ensure your future property investment value

“Prevention is better than cure”, that’s why now is the time for property investment.

Humanity will always be challenged by dark-cloud situations. However, for those who are willing to see the silver lining there will always be opportunities.

In the midst of the current COVID-19 pandemic which the world is facing, there are many positives to be found in the property market. These include:

  • Reduced interest rates which are at its lowest in decades,
  • potentially more favourable lending criteria from the financing institutions,
  • favourable pricing,
  • promotional buy-to-let offers and
  • a higher rental demand that strengthens the current buyer’s market even more.

Investing successfully to create sustainable wealth during these times depends on your ability to take more calculated risks and retaining your composure rather than selling the one thing that will always provide you with a security buffer: property.

Over the centuries property has proven to be one of the oldest and most stable asset classes for investment. It is a tangible and versatile asset which you can use as either a buy-to-let option or as your own steppingstone to get onto the property ladder, because you can sell one property to raise capital for a deposit on your next property.

Buy-to-let property is often seen as high risk, low return investment options by investors, mainly because investors don’t know what to look out for when buying their first investment property.

Typically, investors become negative about property because they might have bought the wrong property purely because of its low price, but in the wrong area, or their tenant vetting wasn’t done correctly, and they ended up with endless tenant problems.

However, with the guidance of the right property expert and useful information at your full disposal, you can’t see property as anything other than a low risk, high return investment. As with any type of investment, it is of the utmost importance to make use of other people’s experience and expertise when it comes to property investment.

When you invest through Central Developments’ dedicated Buy2Let division, all the hard work and research have already been done for you because they know the industry and their properties are developed according to the market’s demands. You have full access to all their property investment experience, expertise, support and promotional offers, so you as an investor don’t have to go hunt for the ideal opportunities – it is handed to you on a silver platter.