One area in which the Covid-19 pandemic seems to have created investment opportunities for income-chasing investors is the real estate industry.
“Property is a long-term and patience game. If you are in it for the long haul, you are set to see some form of value,” said Mayisela. “Therein lies the opportunity for any first-time investors to pick up stocks at discounted rates, with yields [returns of a stock] that are tracking at close to 20%,” said Mayisela.
“There is significant demand for property in the country. If you can secure debt at 8% – 100 basis points above what current prime is – there are opportunities in residential property. If your property is yielding 10% [in rental income], you are already accretive from day one [depending on costs associated with rental properties such as rates and taxes].”