Rule 1: “Location, location, location…
This simple repetition of these 3 words are the number one rule for property as a whole, but for property investment we must never forget the basics of purchase price, rental yield and the property appreciation.
Why do we invest in property? Some people invest for the sake of owning, other invest for the sake of a secondary holiday home, and the select wise few invest for the reasons of growing a investment portfolio and setting themselves up for continual passive income and appreciation, as well as setting up a financial comfort for themselves and their children to come…
Property investment can be summed up in a simple analogy about learning to walk… You know it is very easy, you need to understand the process and what is needed fro you, you need to think clearly about what you are going to do, then you simply need to put one foot in front of the other and take your first steps.
Property investment is all about starting off small, taking those smaller steps before you set into a full athletic stride, by doing this you will grow a formidable base of properties that will allow you to be more adventurous and forthcoming in your property investment purchases as time goes on.
Take for example, rather than buying one house for R2 million rand, rather buy 4 flats valued at R500 000 each, thus having 4 assets to your name and 4 separate sources of income…
Rule 2: Low Purchase Price + High Rental Yield = Successful Investment Property
Do you want to know why?
1) Your overall debt will be less, thereby reducing your monthly repayment
2) Your shortfall between monthly bond repayments vs. rental income will be less
3) Your void rate is likely to be less
4) Your risk is therefore less
Rule 3: Make use of an experts advise/help
We at IPS provide an all inclusive property solution package: a vehicle for property investors to streamline the process, we help reduce the challenges & facilitate effective property investment in South Africa, England and Australia.
We specialise in residential off plan sectional title developments. These offer buyers equal opportunity regardless of where they are in the world.
Although we have a global hold on the property market, we are first and foremost here to help our fellow first time investors/homeowners step into the most lucrative investment option of their life…
So are you ready for us to help you???