DURBAN - When starting out as a property investor a lack of knowledge can lead to costly mistakes.
There is so much conflicting information out there that it is easy for a new investor to become confused and end up making bad decisions.
Here are 5 simple tips for finding the perfect property and you’ll be on your way to success as a property investor.
Choose the Right Property Type
If you want to enter the buy-to-let market, flats generally make the best investments. Your investment budget would obviously be the primary factor, but if you can afford it, choose a two bedroom flat over a one bedroom. If you can increase your budget a bit further, a second bathroom is great to have too. The idea is to select a property that would appeal to a number of different tenants.
Choose the Right Location
Location is still the major consideration when buying a property, whether it’s for yourself or as an investment. There is a high demand for rental properties pretty much everywhere, but buying in the right location will get you the greatest return on your investment and attract the right type of tenant.
Get your finances organised early
If you don’t have the cash, you will need to get pre-approved for finance. This would put you in a stronger negotiating position. Applying for finance early on, will also make you aware of what you can afford to spend.
Know Your Long Term Goals
If you’re looking for a quick return on your investment, look for properties in up and coming areas with a high growth rate. For longer term investment, the established areas may suit you better. In Johannesburg, for instance, the areas in an around Sandton appeal to a variety different people looking to rent and demand is always high.
Find Motivated Sellers
A motivated seller is one who needs to sell, and sell quickly. A motivated seller will be more likely to accept what they think is a fair price for their property as soon as it comes in.