Whatshot
Buying your first investment property
Buying your first investment property
Date: 2016-12-09
You only have to look at people like Donald Trump and the late Duke of Westminster to realise that property investment can be lucrative. Indeed, according to Forbes, 22 people made it onto the Forbes Billionaires' List for the first time this year, thanks to their real estate holdings. And this at a time when it could be argued thatglobal real estate marketsaren't performing at their peak.
So just how does one go about finding the perfectinvestment property, one that is going to continue to offer excellent rental returns and grow in value You know the adage 'slow and steady wins the race' Well, this applies particularly to investment properties.
Research the market - As with anything,investorsneed to be thoroughly educated about the relative markets before they start investing their hard earned money.
Get your finances in order - As a starting point, take a long hard look at your debt and pay off as much of it as you can before you start investing.
What's happening with interest rates - Even with the recent rate hikes, South Africa's interest rate remains fairly low.
Be wary of a fixer-upper - The experts warn against buying a 'fixer upper' as your first investment property.
Find a property in the right location - Yes, we know YOU know that the three most important words in real estate are 'location, location, location', but this is particularly important when it comes to rental properties.
Keep things realistic - Remember how tough things were when you first bought your home Well it's often the same when you buy your first investment property