What type of home will best meet your needs?
Buying a house is a long-term commitment. You don’t want to make the mistake of buying a property that you’ll be forced to sell a few years later because you failed to plan. If you get this initial planning right, you’ll never have to sell your first property.
In fact, if you buy the right property, you’ll be able to generate a steady stream of income from it, renovate it and increase your property value substantially.
So what should you do to find this perfect property?
Choose the right suburb for your personal needs – It starts with the location...
When choosing your suburb you must consider things like crime, traffic, schools and proximity to your work or business. Properties in suburbs that have lower crime rates, in close proximity to shops and schools, often deliver better property values in the long-term.
Crime plays a pivotal role in the buying decision of every homeowner. So, take a drive around the neighbourhood and do the following research…
Visit the police station
in the area and ask if the crime is increasing or decreasing. Speaking to the police will give you a great idea of the type of the level of patrolling in the area too. After all, if you’re an unfortunate victim of a crime, you want to know that you have a strong police force in your area.
If you have children, or decide to have children later on, your child’s safety will be one of your top priorities. Look to see if there are any children walking to and from school. Watch out for school transport services in the area too. You might need to make use of these services when your family grows. Or, you could fill a gap in the market and create a lucrative little side business driving children around.
During your drive, take note of the traffic, the distance of shopping centres, fire stations, hospitals and even your office.
Remember: When you buy a house, you’re also buying and investing in the suburb.
This research will help you find the right suburb to invest your money.
Never worry about property maintenance costs ever again
Every property has maintenance costs. Replacing geysers, electrical cables and repairing damp issues can cost you an arm and a leg.
If you’re renting out a flat or room on your property, the maintenance fees increase significantly.
If you fail to fix problems, like leaking geysers or damp issues it can cause costly long-term damage. But, if you keep maintaining your property, you can save yourself a lot of money in the long-run.
Open a property maintenance savings account and
contribute to it every month
The best way to make sure your property doesn’t crumble under your feet is to open a property maintenance savings account. Every month, you should save a portion of your income and add it to this account.
You don’t have to start with a big lump sum in this account. You could build it up over time. However, it is ideal to have the equivalent of three monthly bond repayments in this account. If something happens and your income dries up, you’ll have a buffer of three months to help you get through the rough patch.
So add to your property maintenance savings account and be confident that you have enough for emergencies.
If you’re renting out a room or flat on your property, keep the tenant’s deposit and monthly rent payments in this account too. That way, when your tenant breaks something, you can fix it immediately. This will ensure that you keep your tenant happy and your property in good nick.
So how do you make sure that you have enough money to fix the issues when they happen?
Well, the solution to achieve this is actually quite simple… If you’d like to find out exactly what to do to keep your property in tip top shape, click here.
Let’s build your wealth together,
The South African Investor
Stock of the Month
The Home Business Tycoon
The Minimum Wage Millionaire
I’ve found a way to take R5,000 today and snowball it into a three bedroom house 12 months from now
Not only that, if you wish, this R5,000 will pay you to own it.
A year from today you could be receiving a completely passive rental income of around R130,000 a year…
… for the outlay equivalent of a month’s worth of groceries.