Become a successful property investor
Category RealADVICE
Property investments have shown favourable results over many decades. Being a successful investor requires both knowledge and skill of the industry and not just a big fat bank balance. Do you have ambitions of becoming a property investor? Here's how you can begin your road to success:
Devise a plan
Research the property market as much as you can. Discover the trends happening in the markets, which areas are lucrative, and the price ranges that might be potential target opportunities. Put together a plan and strategise your property requirements. This can help filter your property search and eliminate time loss.
Build your network
Get in touch with professionals in your preferred investment area who specialise in property investments. They can teach you a thing or two about the industry, the markets, hotspots and more. Aim to build a network of specialist contacts who can advise and perhaps assist you in your property investment journey. There are tons of articles on property, set a goal to read at least one a day - you may learn a new trick every day.
Choose your property type
Whether you are a first-time investor or looking to purchase your second or third property, choosing the type of property to invest in is vital. Perhaps you are a commercial investor looking to invest in residential property to generate rent - it would be advisable to consider investing in smaller properties such as flats. Smaller flats and apartments tend to generate a better return than houses do.
Location
Location is everything. Ensure that the type of property you purchase is in demand. One such good investment area to consider is the town of Nelspruit, being the capital city of Mpumalanga and gateway to the Port of Maputo in Mozambique. Generally speaking, apartments are great for the cities and warehouses are fit for industrial areas. A house in a commercial area will not be attractive to renters who want peace and quiet. Do extensive research on the area. For instance, if you were looking to invest in Nelspruit, the local Nelspruit folk are the best source of information on particular neighbourhoods and their attractiveness. You do not necessarily need to invest in an upmarket area that costs millions of Rands. Starting small also means considering an area that may be cheaper yet still has a demand for rental properties. You can always add value to the property and ensure a later higher resale amount.
Add value to your purchase
In some cases, the property will require repairs. This is not a bad move as the more repairs and renovations you do on the property can enhance the rent you can receive, and when you are ready to sell you can do so at a higher value. Little things like new doorknobs and a fresh coat of paint will make the property stand out more.
Limit yourself
Do not go overboard when you are purchasing an investment property. While you may think that it is an investment, in some instances spending too much can be a loss. Again, research and knowledge are key factors. Example, if a property is purchased with a bond, ensure that your monthly repayments are covered by the rent and that you do not end up paying much more than what you receive. Go for a smaller and cheaper property instead.
Know when to sell
Sometimes the property that you chose to invest in may not perform as well as you anticipated. In some cases, the rental property market may be unfavourable for just a short period. In times like these, you need to learn how the markets operate and your investment skill will come into play. If the property is the concern and you are just not getting anywhere, it is best to sell. Taking a loss now can save you from a bigger loss a few months down the line.
If you are keen on becoming a successful property investor contact your local RealNet Property Professional for advice today, or if you would like to explore some investment opportunities in Nelspruit contact our RealNet Nelspruit team today. Our skilled and experienced team of specialised estate agents are ready to help you secure the ideal investment property.
Author: RealNet
