f you’re a government employee thinking of investing in property or starting your own business after retiring or resigning, this may be the most important thing you read today.
I’m about to share a painful experience—one that cost me over R1 million. I’m not sharing this because I’m proud of it. I’m sharing it because if it helps even one person avoid a costly mistake, it will have been worth it.
The Dream: Passive Income Through Property
Two years ago, my wife and I invested in an apartment in a prestigious estate in Umhlanga, Durban. On paper, everything looked perfect:
- Great area
- R10,000 monthly rental potential
- Rising property value
- Opportunity to diversify income
But what looked like a smart decision quickly turned into a financial and emotional drain.
The Numbers: How We Lost Over R1 Million
Here’s how the costs stacked up over just two years:
| Expense | Amount |
| Bond repayments (R10,000 × 24 months) | R240,000 |
| Levies (Year 1: R1,500/month) | R18,000 |
| Levies (Year 2: R2,500/month) | R30,000 |
| Optional facilities fee | R50,000 |
| Total Out-of-Pocket | R338,000+ |
We bought the apartment for R1 million. After estate agent fees and other deductions, the resale value is… R1 million.
No profit. No growth. No return.
In fact, factoring in lost interest, opportunity cost, and inflation, we’re down over R400,000—and that’s conservative.
5 Lessons Every Government Employee Must Learn
1. Know Your Skillset—And Stick to It
My first mistake? I followed someone else’s dream.
My friend is a property expert. He understands tenants, contracts, maintenance, and negotiations. I’m a financial advisor. My skill is in helping government employees save on tax, choose the right retirement/resignation strategy, and protect their long-term wealth.
Just because someone else is thriving in a business doesn’t mean you will.
Lesson: Don’t invest in areas where you have no skill or passion. Focus on what you know.
2. Do What You Love—or You Won’t Follow Through
I love what I do. I wake up every day passionate about helping civil servants make better decisions. But property? I didn’t love it.
- I didn’t research rental contracts.
- I didn’t manage the tenant relationship.
- I didn’t even visit the apartment for over a year!
Lesson: If you don’t love what you’re doing, you won’t give it the time and energy it needs to succeed.
3. Your Business or Investment Must Solve a Real Problem
The best investments solve problems. That’s why my advisory business works—I help people save tax and protect their money.
My property investment? It didn’t solve a problem. There was no plan to improve the tenant experience, no innovation, and no value-add.
Lesson: If your investment or business doesn’t clearly solve a real-world problem, it will likely fail.
4. Plan for the Worst, Not Just the Best
When I bought the apartment, I only saw:
“Rental income! Rising value! Passive income!”
I didn’t consider:
- Vacancies (we had none for 6+ months)
- Rising levies and interest rates
- Hidden maintenance costs
- Administrative time and stress
Lesson: Hope for the best, but always plan for the worst-case scenario.
5. Ask Yourself: Is This the Easiest and Best Way to Build Wealth?
Instead of sinking R338,000+ into this property, I could’ve:
- Paid off more of our primary home
- Invested in my business and helped more clients
- Taken my family on holiday (with less stress!)
- Saved and earned safe returns via structured investments
Lesson: Just because something is called an “investment” doesn’t mean it’s the smartest move.
So What Should You Do Instead?
If you’re approaching retirement or resignation, and you’re tempted to “do something big” like starting a business or buying property—pause.
First, get clarity on your:
- Skillset
- Passions
- Risk tolerance
- Time commitment
- Wealth goals
Then ask yourself:
“Is this the best and easiest way to build wealth for me and my family?”
Sometimes, the best investment is simply protecting what you already have.
Final Thoughts: Wealth Is More Than Just Money
This mistake taught me that wealth isn’t just about rands and cents. It’s about peace of mind, clarity, control, and freedom. And often, those things come from doing less—but doing it smarter.
If you’re unsure about what to do with your pension, or how to build a secure future without taking unnecessary risks, I’d love to help you think it through.
✅ Ready to explore safer, smarter strategies?
Book a personal consultation here:
👉 www.retirevsresign.co.za/op/ONLINE/#registrationform
Disclaimers:
This blog was created by Retirement Wellness SA (FSP 31609). We are not affiliated with or acting on behalf of the Government Employees Pension Fund (GEPF). The content is for educational purposes only and should not be considered personalized financial advice.
