 Search for a home on any device, any time, anywhere. Private property, a home for everyone. Welcome back to Winner Home on afternoon Express 1, SABC 3. Now, there are many things that give me anxiety, but the one that gives me the most amount of anxiety is buying property. Now, in our property advice series, we're discussing various aspects of residential estates in South Africa. And today, finally, in studio, we have Neil Peterson, founder and editor of Real Estate Investor Magazine, who is going to help us all understand the ins and outs of buying property on an estate as that investment. So welcome to our left. No, thank you very much for the opportunity. It's an absolute pleasure to be here. I don't know if I'm excited or really nervous to have you on this couch because property has always been something that you get different pieces of advice from so many different people. Buy, don't buy, market's good, market's bad. It's a buyer's market, it's a seller's market. Is buying property even an investment today? Absolutely. Hands down. And so let me just start and take you a little bit back. The word invest or investment is used to flippantly out there. And people tend to say this property that I just bought was a great investment. They don't really know why it's a good investment. So if we start looking at what does invest mean? Invest essentially means that you're investing to achieve a profit. So the second part of it is, of course, endowing yourself with information. In other words, investing in yourself with knowledge. And those two factors people don't take into consideration. So then when it comes to investing itself, what's the difference between the investment and the kind of those mistakes people make? I mean, is an investment because I take out a bond and then I have on our property that's an asset and I sell that asset, I make money. Is that regarded as an investment or is it has to be immediate returns? It's a little bit of both. I think first of all, you've got to study the market because if you speak to any sort of state agent property broker or professional, the first thing they say is location. Yes, location is important. I think specifically when you're looking at an estate type living, which I don't really call an investment per se, it's more of a capital appreciation type investment as opposed to one that you're going to rent out. And I mean, there's more than a hundred ways that you can actually invest in real estate and those are just two that I've mentioned. But people tend to say, well, I bought a property and it's going to grow by 10% this year, 10% the following year and I made a great return. It's not about that. It's a combination of both factors, but more importantly, it's about the cash flow. Yes, exactly. And that takes a bit of study and it takes a little bit of work to understand that and what all these different terms mean. So you just need to know a few better terms. You need to check your references. It's very important to verify and do your own due diligence. And I think in South Africa, a lot of people who are buying property just go and buy on the advice of somebody else instead of actually doing their own homework, their own due diligence, checking out the property, checking out the quality of the property, looking at why the owner wants to sell. The surroundings, what's going up, what's going down. The looking at the rental yields. Now when you start getting into technical terms, it sounds technical. It's not really that technical. It just means taking a little bit of time and effort. That's something that's exciting about this year's season of Winner Home is that we are buying and building on an estate. And I think estate living seems to be trending quite a lot in the property markets. Absolutely. We spoke last time a little bit about how the property values are slightly more expensive on an estate because of the lifestyle you're buying into. Is it still worth buying on an estate? And what should we look into when it comes to renting or perhaps even buying and investing on an estate? Look, so estate living is a massive trend in terms of lifestyle. And I think it will continue to grow and it's for one simple reason, right? And so that gets security. And because of security, people are looking for that kind of peace of mind. However, it does come at a price. It comes at a premium. And if you are buying directly from the developer or if you're buying through an agent or whatever, you're going to be paying a premium. Sometimes there are some distressed assets within that you can get at better prices. However, you've got to say what is the reason? Why are you buying this property? Why are you renting? And it comes back to your purpose. People want to make money though, Neil. It's obvious. People do want to be able to make money. So can I buy and rent it out and make money on an estate? Absolutely. So I know people, for example, who have got properties on eco-estates, 45,000 round a day. They want to keep it to a point of not the entire year because they also want to enjoy the property themselves. So there's a combination of that. And so, yes, you can. You can get these magnificent returns. It tends to be more in the higher end of the market and a little bit more riskier than your normal cash flow type investments in your sort of bottom end. Good stuff. Thank you so much, Neil. Now, remember that on this season of Winner Home, you stand a chance of winning a beautiful home on the Eye of Africa estate. Your choice of one of the three currently being decorated by our dynamic design duos. All you have to do is log on to privateproperty.co.de and answer a very easy question. It's as simple as that. No need to buy. We'll be right back after the break with more Winner Home excitement. Don't go anywhere.