Defending property as an asset class

IGrow champions property investment, not to dismiss other asset classes, but to recognise that while markets fluctuate, people always need homes, land is always finite, and disciplined use of finance remains the most powerful tool available to ordinary investors.

A lasting foundation in an uncertain world

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
— Franklin D. Roosevelt

As markets today react to every announcement and algorithmic trade, these words have never been more relevant. Property endures, not because it is immune to volatility, but because it is real. You can walk past it, touch it, and see its value grow.

Despite this resilience, property remains one of the most misunderstood asset classes. Critics point to illiquidity, maintenance, or slow capital appreciation, but overlook the real drivers of property wealth: leverage, time, and tangible ownership.

The case against property and why it’s misguided

Liquidity can be both a blessing and a curse. Property’s strength lies in its permanence.

The three main arguments against property investment are that it:

1. Underperforms compared to the stock market’s short-term surges,
   
2. Is illiquid
   
3. Is difficult to manage.
   

Here’s the flaw in argument number 1: critics often evaluate property as though it were a cash purchase, not a leveraged investment. Property allows investors to control an appreciating asset many times greater than their initial contribution, with tenants and banks effectively partnering in the growth. To ignore leverage in property analysis is to misunderstand its very engine.

Its illiquidity, on the other hand, can enforce a quiet discipline forcing investors to think long-term and stay invested through cycles.

Finally, unlike equities or funds, property gives investors direct influence. Through careful selection, proper tenant management, and minor improvements, they can actively shape their returns.

Even after costs and financing, well-managed properties in South Africa’s key metros continue to deliver net yields of 6–9%, often accompanied by consistent capital growth.

Leverage: The engine of growth

If there’s a single concept that sets property apart, it’s leverage: the ability to use borrowed capital to acquire high-value assets while compounding returns on a modest contribution. In most investments, debt increases risk. In property, used responsibly, it accelerates wealth.

Consider an investor who purchases a R1m property with a 10% deposit. If that property appreciates by just 6%, that’s a yield that would be considered modest on the stock market. However, in one year, the investor’s equity grows by R60,000, a 60% return on their own capital before rental income or bond reduction.

That is the quiet mathematics of leverage, turning deposits into disproportionate returns. Of course, leverage demands responsibility. Interest-rate increases, vacancy risk, or overexposure can erode returns for the unprepared. But when combined with prudent cash flow management, conservative gearing, and long-term vision, it becomes one of the most powerful financial tools available to everyday South Africans.

As Archimedes famously said, “Give me a lever long enough and a place to stand, and I will move the Earth.” Property investors, in essence, have that lever: finance.

Time: The silent multiplier

It is well known that time is the investor’s most faithful ally.

If leverage is the engine, time is the fuel. Unlike equities, where investors can sell impulsively in a downturn, property anchors you to your plan. It enforces discipline, transforming ordinary investors into portfolio builders.

A property held for 12 years at 6% growth doubles in value, even before factoring in the repayment of debt through rental income. The investor’s wealth and available equity grow from both directions: appreciation above and amortisation below.

Over time, inflation erodes the real value of debt while rental income rises, turning what began as a liability into an advantage. That dual compounding effect is the wealth machine most financial models ignore.

Tangibility and control

Beyond the spreadsheets and yield curves lies something no other investment truly offers: control. Unlike equities or funds, performance is not dictated solely by external forces. Investors influence outcomes directly through management, maintenance, and strategic upgrades.

The psychology of ownership is powerful. Tangibility breeds patience. It’s far easier to panic-sell a share than it is to walk away from a property you can visit and improve. During downturns, tangibility becomes an anchor. While digital portfolios fluctuate, rental income continues, and the property stands visible, stable, and productive.

This connection between tangibility and investor behavior is why property often outperforms in the long term, not necessarily because it yields more, but because investors stay invested. And staying invested, as every strategist knows, is the true driver of compounding returns. Property’s durability gives investors something no algorithm or exchange can: the ability to touch their wealth and sleep well at night.

Property in a balanced portfolio

Every investor seeks an equilibrium between risk, return, and control. Property provides all three. Its value is tied to a fundamental human need: space to live, work, and grow. This inherent utility keeps it grounded in reality, even when markets sway.

Property also acts as a natural hedge against inflation. When prices rise, so do rentals, while debt becomes cheaper in real terms.

In South Africa, where urbanisation continues to outpace supply in metros such as Cape Town, Johannesburg, and Pretoria, this dynamic remains powerful.

Moreover, property’s correlation with traditional asset classes is low. When markets tumble, bricks don’t panic. A well-tenanted apartment block continues to produce income regardless of global sentiment. One could say property doesn’t just diversify your portfolio, it steadies your pulse. It’s not a speculative thrill ride; it’s the ballast that keeps the ship upright when financial storms roll in.

The IGrow perspective

At IGrow, property is not speculation. It’s a strategy.

For almost two decades, we’ve watched South Africans from every walk of life turn disciplined, long-term property ownership into financial freedom. The formula isn’t complicated, it’s consistent education, leverage, patience, and professional guidance. Our role isn’t merely to sell property; it’s to engineer portfolios that perform across cycles.

For every development we present to investors, we do rigorous due diligence: location analysis, rental-demand forecasting, cost modelling, bond financing optimisation, and effective management. Because in our world, “good property” isn’t defined by emotion or aesthetics, but by cash flow, yield, and growth potential.

We’ve seen the results firsthand. Investors who started with a single, bond-financed sectional title property a decade ago now manage multi-unit portfolios producing reliable annuity income.

We also recognise that successful property investment doesn’t end at transfer. Ongoing management, tenant stability, and maintenance are what separate investors from speculators. That’s why IGrow’s integrated ecosystem, from acquisition to bond origination to property management, exists to support the investor at every stage of the journey.

We help people build portfolios that endure. In an era of financial uncertainty, that endurance has never been more valuable.

The cornerstone of lasting wealth

Ultimately, property is both financial and philosophical. It represents the human desire for stability, legacy, and ownership. Real estate rewards those who think beyond the next quarter, election, or rate cycle. It doesn’t require brilliance, but consistency. It asks you to understand leverage, respect time, and make decisions that compound quietly in your favor.

Property may not make you rich overnight, but it will make you wealthy over time. For South Africans navigating uncertainty, it remains one of the few investments that can be understood, managed, and trusted.

At IGrow, we’ve seen ordinary investors turn that truth into a lasting legacy for themselves and their loved ones. Brick by brick, bond by bond.

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