Property ownership has always been a powerful method of wealth building, and at ZAkasi we are ready to support you as you invest in your property portfolio. Investment property builds wealth in two ways. First, it generates regular income in the form of rent payments from tenants. Second, as the South African market develops and the economy grows, the value of the property is likely to increase.
As with any investment, there are risks to investing in property. If you require a bond in order to finance the property, you will have to be sure you can cover the required payment each month. This is challenging during the months when the property does not have a tenant. When the property has a tenant, sometimes they might have difficulty paying their monthly rent. Finally, if the South African economy changes dramatically, the interest rate on your bond could change and this might increase the amount you have to pay each month.
In order to minimize these risks, it is important to work with a trusted financial institution in order to ensure that your bond amount is manageable, and to work with a trusted real estate institution in order to quickly find tenants and to ensure that your tenants have a good history and are unlikely to cause any problems like non-payment. ZAkasi, the #No.1 township property portal, will connect you to the best people for this.
When choosing which property to invest in, consider three factors.
1) Condition of the property.
A Fixer Upper property can appear cheaper than a well maintained property, but if you are buying the property as an investment then bear in mind that as a landlord you will be required to maintain a certain standard of repair for your tenants. This means that if you start with a property in a very bad condition, the costs could quickly add up when trying to get the property ready to rent.
2) Location location location.
Some areas are developing faster than others, and some areas are currently nicer to live and work in that others. When choosing your property, it is important to look for hot areas because it will be easier to find tenants who are looking to rent in that area. It is also important to consider if an area is improving or not, because if the area around your property improves over the years, the value of your investment will increase with it.
3) Size matters.
Many families and businesses are just starting out and still making their way up in the world. This means that it is easier to find tenants for a smaller “starter property”. On the other hand, these tenants will outgrow their starter property and you’ll have to find new tenants regularly. Larger properties are slower to rent out, but once rented the tenants tend to be more stable because larger tenants have found what they are looking for and prefer stability.
Remember, ZAkasi is there to help. We can find properties and buyers. Speak to us today!