Best Way To Invest Money [2021]

Why are Banks are willing to pay for your investment?

The best way to invest money is to get somebody else to invest their money for you. Banks are willing to pay for your investment, without any additional security with one caveat! - it has to be property.

Bankers understand financial risk, they have armies of actuaries studying the risk profile of the banks' investment opportunities. The higher their risk, the higher the return on investment they require to mitigate those risks. And the interest they charge is where banks achieve their desired return on investment. 

It might be a surprise to you, but when you borrow money from a bank, they consider it as an investment in you and your enterprise.  

What do the banks consider as the best way to invest their money?

So if you want to know what banks consider their lowest risk, simply look at what they are willing to finance and at what interest rate they will charge you.

Banks borrow money from the general public (called "savings accounts") and offer interest rates to the "savers" of between o% and 3% .

Banks also borrow money from the Reserve bank at an interest rate known as the "Repo Rate"  which has recently been reduced to 3.5%.

Neil vorster

The Reserve bank has declared the sale of the century. This the lowest the Repo Rate  has ever been!

The banks in turn invest that money by lending it to the public. They make their money by adding a mark-up to the cost of the money they borrow. 

Now, lets see how banks apply their wealth of knowledge to the risks to decide the best way to invest their money. 

Personal loans - High Risk

Small personal loans are available with no collateral, but a whopping interest rate of up to 24.5% . That's 21% more than it costs them. Clearly this type of loan is in the high risk=high reward category. 

Vehicle finance - Medium Risk 

Vehicle finance is a bit cheaper as the banks will require the vehicle as collateral and will charge you between 10% and 13%. They are content with a markup of around 7 to 10 percent. 

Property Loans - Low Risk

BUT, with property finance, they will go as low as 6%, only marking up their cost of money by 3%! They are happy with such low returns, because they require that you provide the property as collateral, and BANKS UNDERSTAND PROPERTY !

Neil vorster

The Banks have decided that their lowest investment risk category is Homeloans

This table below tells the story. The less interest charged is a direct indication of how banks understand their risk. 

Type of loan

Interest charged

Personal overdraft

15 % - 24.5% 

Vehicle finance 

10% - 13% 

Home loan Finance

6% - 8% 

Warren commented on a recent youtube video [Where to Invest your money in 2021] as follows ;

This is something that has been resonating with me for many years. Property is the only asset class where the banks will finance 100% of your investment without requiring additional collateral - they literally pay for your investment!

At the time of writing this article, we are 12 months into a global pandemic which we all know has caused personal and financial trauma on a global scale. The government has literally given away Billions of Rands to the public to keep the wheels turning, and yet despite all this financial crises. the big 5 banks have agreed to a special offer, the sale of the Century! 

special offer for property investors

Discover the best way to invest the banks money for you 

In this video below, I have some fun unpacking the magnitude of this sale being offered to investors RIGHT NOW !

If you want help to take part in this special offer for property investors, and make sure you buy an investment that is

  • The right type of Property
  • In the right Place ( Location Location Location)
  • At the right Price

[Click here] to discover our unique property coaching service to help you avoid the many pitfalls of property investment and take advantage of the sale of the century. 

Investors - The Sale of the Century

 In this mid covid economic climate the banks have a special offer for the property investors. Yes it is true, the Big 5 South African banks are holding a special offer for you!

Take advantage of the sale of the century, get your buy to let property investment now. 


Frequently asked questions:

How can I find safe investments with high returns?

Where is the best place to invest money right now?

Would you advise property investment as a good way for investing money for beginners


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