Investing Where You Belong: How Township Property Became a Goldmine
When most people think of real estate investing in South Africa, their minds immediately go to trendy suburbs or high-end developments. But for Indumiso, a full-time accountant and passionate property investor, the real opportunity lay closer to home—in the heart of Ebony Park.
What Is “Ekasi Investing”?
“Ekasi” is a colloquial term meaning “in the township.” Ekasi investing focuses on high-density suburbs, typically underdeveloped but full of potential. These areas are often overlooked, yet they provide some of the best returns when approached strategically.
Indumiso describes his strategy as one rooted in familiarity and community: “You better invest in your own neighborhood… and help your own people.”
From Accidental Purchase to Intentional Portfolio
Back in 2006, Indumiso bought his first property for R150,000—without a strategy. It was a friend’s house; he bought it just because it was available. Fast forward to today, that same house is worth over R700,000. What changed? The back rooms.
By building six external rental rooms on the same property, he increased its rental yield dramatically. He now earns over R14,000 per month from that one investment alone.
What Are “Back Rooms”?
Back rooms are small, additional structures built behind the main house, usually used for rentals. They can range from simple single rooms to self-contained bachelor flats. These rentals serve a critical need for affordable accommodation, especially for people who have moved to Johannesburg for work.
“With property, you don’t have to be there full-time. You can build a system and let it run.”
Compliance and Municipal Support
In areas like Johannesburg, getting municipal approval for building back rooms is relatively straightforward. As long as your plans are submitted and approved by the City, you can legally build and rent out back rooms—offering an advantage to those who are willing to follow the right steps.
Equity: The Hidden Treasure in Your Backyard
Indumiso now uses the equity in that first house to fund future investments. Equity, the difference between your mortgage and the property’s current value, can be leveraged through refinancing to buy more property or build better structures.
“I’ve used the equity in that property multiple times. It’s like a cash reserve for new deals.”
Scaling Beyond One House
Today, he’s moved from building back rooms to full-scale developments. His current project? A 1,600 square meter lot in Soshanguve where he’s building 16 self-contained bachelor units. Each one includes its own kitchen and bathroom—creating a dignified, private space for working-class tenants.
Lessons for Aspiring Property Investors
- Start where you are. Your old family home or first residence could be your first investment.
- Educate yourself. Don’t blindly follow trends—learn the process and compliance.
- Leverage equity. Use your home’s value to grow your portfolio.
Think long-term. Today’s R150K house could be tomorrow’s multi-million rand asset.
Check out The TJ Tribe for more success stories, hints, tips and tricks on property, investing and wealth building.