When you first decide to invest in a property the excitement pumps you up. Your heart starts racing, you already see the cash rolling in…
But before your ambitions run away with your good judgement you should take a step back and evaluate whether the property you're looking to invest in will provide you with growth - or is it a cash-trap that'll suck your wallet dry.
What to look for in ... ››› more
I bought my first rental property at the age of 22. Luckily it turned out a great investment.
But since then I've learnt a lot.
Truth be told, there's a heap of things I wish someone had told me about when I first got started in property back then.
The time, the money it could've saved me... I sure as heck would have gone a lot further a lot faster if I'd had a clue about some things.
... ››› more
Over the past six years I've worked with many estate agents looking to manage my rental properties. And whenever it took time to fill up an empty apartment they'd tell me “the market is slow this time of year”.
They weren't all lying to me. Considering the post-2008 property market it hasn't been smooth sailing for anyone.
South Africa's economy is struggling and people are finding it ha... ››› more
There's no denying it. Property is one of the best performing sectors of the JSE, year in, and year out.
In fact, a quick look at the SAPY property index shows that it returned 1,035% between the start of August 2004 and August 2016.
In comparison the JSE All-Share index returned 626% including dividends…
Clearly property is a top performing sector.
What's even better - with list... ››› more
I was recently at a property auction. The developer of a complex had been liquidated and was left with 7 apartments that needed to be sold on auction.
Before the auction these properties were advertised for around R560,000. And there was not much interest in them.
Considering they could fetch around R5,200 in rental per month I hoped to pick one or two up for a bargain at the auction… ... ››› more
Right now there's a shift happening in the South African property investment space that's perfect if you're a property investor that wants to get your money into the rental property game.
Demand for buying property is falling quickly and more people are looking to rent property right now. This is because the weakening rand, banks tightening their lending criteria and the general increase in co... ››› more
Last week a property investors told me that: “Property in SA is too big a risk. New laws coming out soon will limit property ownership to two properties and there will be no foreign ownership allowed.”
Is this true? Should you up and sell your property right now, or is there hope left for the South African property sector?
The truth about new property laws – it’s not as bad as yo... ››› more
Property buyers have more negotiating power - Now is the perfect time to invest in property
In the last few years, investors buying residential property for investment purposes were struggling to negotiate the price of the properties down.
That's because higher property prices were giving sellers all the negotiating power.
But there's a shift of power happening in the markets right now.... ››› more
“Investing in property doesn't make money any more. I should rather sell everything and put my money in the bank.”
That's the words of a friend of mine, Jaco, whilst we spoke about property investing the other day.
Jaco owns a number of properties but feels that he's not making enough money from them to keep on bothering investing in property.
The thing is, after investigating the ... ››› more
Many investors are afraid of investing in property because they simply don't know how to get started and what to expect from their property investments.
The truth is investing in rental property is a great way to increase your monthly income and grow your long-term investment portfolio.
Today, let's look at three benefits of investing in property and why you should consider property rental... ››› more
According to Stats SA 36,300 new houses was built in South Africa during 2015.
This has been part of a steady recovery since the 2008 crash.
But before you go out and buy the first best rental property you see first heed my warning…
You need to bring the interest rate risk into your equation
Looking at the vast bulk of property prices today it’s clear to me buyers simply aren’t re... ››› more
From 2012 to 2014, the JSE gained over 55%. But 2015 wasn't a year to remember for the JSE. The JSE All Share notched a measly 1.9% return in 2015.
The interesting part is, despite the JSE All Share's poor performance, it recorded 22 new listings, just short of the 24 recorded in 2014. What's also surprising is South Africa's weak economy and rand depreciation didn't stop companies from raisin... ››› more
When building a long-term investment portfolio to build your wealth, you need to consider what to include.
Whilst stocks may be the first things that spring to mind as an investment opportunity, it's a good idea to add in other asset classes too. This helps to boost your portfolio's diversification and reduces your investment risk.
So what are you options?
Read on to find out…
Fiv... ››› more
This isn't my usual message purely about investing. But I felt the need to share it with you. It contains the gravest warning I've ever given investors, property owners or business owners in my life.
On 13 March 2015 the South African government gazetted a new bill.
This piece of law was written by the minister of agriculture and head of the South African Communist Party, Senzeni Zokwana.
... ››› more
Earlier today, Stats SA released its consumer inflation data for April. The data showed a steep rise in the consumer price index (CPI).
But in spite of the rise, it was slightly below expectations.
Let's take a closer look at what the data revealed…
Consumer inflation hits 4.5% last month
Consumer inflation rose to “4.5% year-on-year in April,” reports IOL. That’s up from th... ››› more
Buying property to rent out can prove to be a great long-term investment.
As long as you pick property in an area where there's strong demand, you should see the value of your property rising over time and a monthly income from your tenants.
So if you're serious about investing in property, what sort of properties should you consider?
Let's take a look at four different options…
... ››› more
Property is a great long-term investment.
By investing in property to rent out, you're not only buying an asset that's sure to appreciate over the years, you're securing a monthly income.
So if you're serious about investing in property, what's the best way to approach it?
Read on to find out…
The benefits of investing in property
If you’re looking to build your wealth, inve... ››› more
So, you're looking at an investment property right now. It's well located and you expect it could appreciate in value.
But it costs R400,000 for a 32sqm bachelor's flat.
Is that overpaying or not?
After all, the price you pay for an investment property is the difference between ten years of profits and ten years of losses.
Well, to me the easiest way to figure this out is to know how ... ››› more
Buying a property is one of the most expensive purchases you'll likely make.
Once you find one that ticks all the right boxes for you, it's vital you make sure that what you see is what you're getting.
So what's the best way to check the property?
Read on to find out…
Why the need for a home inspection?
Whatever the property is you’re buying, an apartment, townhouse or house... ››› more
Living in a complex continues to grow in popularity.
It has a number of advantages, such as on-site facilities and security. So if you're considering investing in a property in a complex to rent out, what should you pay attention to?
Let's take a closer look…
What to do if you want to buy a property in a complex
In many cases, when you buy property in a complex, you’re buying a... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.