Question:
I have sold my house and have about R1.2-million cash. Due to my mobility, I need to rent in the future. I am looking for a long-term investment tool (more than five years) that will keep my money growing in line with residential property growth in South Africa.

Are property unit trust funds, such as the one offered by Prudential, a good choice and do they track the residential property market?

Answer:
Property unit trusts are generally good investments but like any other investment product they can be cyclical, and I certainly would not invest the entire sum into one asset class.

I would consult a good financial planner to get all the options; however beware of products that attract hefty fees and administration costs.

Investing a portion of the money back into a property that you rent to a third party could also be an option.