Many investors are looking for alternative investment vehicles or merely to keep their cash in banks while they wait for world equity markets to recover. While experts believe the markets are very cheap and now is the time to invest, many investors just do not have the appetite or the necessary time horizon and risk profile for market related investments. Over the short term, the slogan "CASH IS KING" may be true for many investors, but not for the medium to long term investors, especially with the expected rate cuts in mind.

Important factors to be considered by investors are risk, investment term, liquidity, return on investment, asset classes, volatility, and tax implications. Investment planning is a more complex exercise than many people think and should be done with the necessary care.

Property has recently become more popular as an investment vehicle. This asset class has proven to be less volatile than market linked investments and offers acceptable returns. Risk, term, tax efficiency and the mere complexity as well as very often the unaffordability of direct property investments have made this a no-go area for many private investors. To obtain rental income from an investment house or flat is within the means of some investors, but a commercial property like a multi-million Rand shopping centre is quite a different story. The private investor usually accesses these investments by means of a property unit trust, which invest in a basket of shares of property companies that are listed on the stock exchange. The investor is in the hands of a portfolio manager who charges a fee for his service, and also has to pay an upfront investment fee, which comes off the investment capital. The investor with enough knowledge can buy shares in a listed property company. However, the better option is to make use of the services of an experienced stockbroker. These options are still to some extent influenced by market movement and sentiment. Direct property investments through property trusts or syndications have recently become very popular for various reasons:

· A property management company will source a good commercial investment property (in most cases retail shopping centres) that meet their very strict and prudent investment criteria. Investors are then invited to buy shares in a property investment trust, which owns the property. Investors are the only beneficiaries of this trust. The net monthly rental income, after deduction of running costs, is paid to investors. Much details of the property, its location, tenants and financial statements are made available to potential investors. The investor becomes a part owner of a specific fixed property. No money is at any stage paid to the property management company. The investment gets paid into the transferring attorney's trust account and a share certificate is issued upon registration. The soundness of the property management company is no threat to the investor. In fact, the trustees of the property investment trust may appoint a different management company if the need arises. The property is the investor's security.

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SHAREMAX, a very successful property syndication company based in Pretoria offers the following proposition:

• An annual income of 10% paid monthly
• This income escalates at 10% per year
• Capital appreciation of 7% per year
• Liquidity - shares may be sold private or through SHAREMAX.
• Audited statements and trust deeds are available to investors.
• No upfront or annual cost - 100% allocation of investment amount.
• Minimum investment amount is R5 000 with no maximum.
• Income is paid in form of interest and will qualify for the R10 000 and R15 000 per anum respective tax exempt interest earned for people under 65 and 65 or older.
• Profits made and resale of shares will attract capital gains tax
A unique feature of property investments is its ability to offer an escalating income as well as simultaneous capital growth. In the above example of SHAREMAX, the internal rate of return (income and capital growth) is 17% in the first year, escalating to 22% at the end of the third year and 26% after five years.

With all the above said, it must still be born in mind that most investors need a combination of different investments with elements to cater for the specific circumstances and needs of the individual. One thing certain is that property should form part of any diversified investment portfolio. When you need to make important decisions about investing your hard-earned money, make sure you seek the advice of a competent, well-qualified and trustworthy investment advisor.