Property investing has often been looked at a secure and profitable passive investment for higher net worth individuals. This is due to their physical nature and income potential. And depending on the guidance from your Financial Advisor, a property investment in South Africa could be a great investment and addition to your personal financial portfolio. But where do you invest your money? And how do you invest it?
6 tips for investing in Property
Buy a property and Rent it out (Buy-to-Let)
Buy to let is a great option for property investors as this helps them recoup the costs of maintaining the property and paying the bond. The mistake many investors make is thinking their no risks involved, which is untrue. As there are many risks involved in investing in this type of property. From tenants not paying, to building damage and area problems causing devaluation in the property.
The upside is many professionals such as Ooba say a 12% yield is possible in some areas. This means a R1 million-rand investment could get a return of R120 000 per year.
Speak to a property professional and see if a Buy-to-let property is a good idea for you.
Buying an old, run down property and renovating it to be something new is a popular way of making money in the property world. This is known as flipping houses.
It is important to do you research onto how much the renovations will cost and what areas to buy in. Often house flippers have previous experience in the property/ building industry.
Know your Areas
As many realtors will tell you, place or position are very important. This is because we often buy with our eyes first and then our minds. This is the same reason, many agents say that Kitchens sell homes, as kitchens are associated with warmth and family.
Do your research and speak to some professionals to learn about which areas are great for investment and which are not.
Take your time!
Many people tend to want to rush into things. And in most cases, this is not the best idea. Especially when this comes to long term investments like property, where your money is tied up for more than 10 years. Rushing into something like this can waste your time and money!
So, take your time, do your research on property investments in South Africa and make an informed decision.
Talk to a professional
We all like to pretend we know everything, but the truth is we don’t. So, we need to find and talk to people who have the expertise in the areas we lack. Talking to a registered financial advisor who has knowledge in property investment in South Africa is a great idea if you are wanting to invest in property. These experts have years of experience and have studied to provide you with the best advice. They could explain platforms such as Easy Equities Properties!
With so many investment options out there, make sure you research them all before you jump into a property investment in South Africa. Talk to your advisor, look through your financials, and decide if the risks are worth it for you.