Now is the right time to buy properties on auction and build your empire
Many homeowners can't afford to keep up with their bond payments thanks to the latest interest rate hike... And economists expect even more hikes over the next two years. That means there'll be an oversupply of properties on the market which means one thing - Bargain properties on the market!
You see, properties sold on auctions are about 30% cheaper than ones sold on the open market!
To find these auctions you need to subscribe to sasheriff.co.za for a small fee of R90 each month.
And if you want to expand your investment net to even more auctions you should have a look atwww.property24.com/auctions, www.privateproperty.co.za/auctions and www.saauctions.co.za.
Find the right people to partner with
Use other people’s money to build your empire.
That’s right, you can find like-minded investors that are willing to put up the money for this investment property. You’ll need at least five partners to contribute R50,000 each.
But where do you find these willing investment partners?
It’s simple, you can make new contacts at the property auction I told you about, investor meetings, and by asking friends and colleagues.
Be very careful who you partner with because this is a long-term investment so don’t just accept anyone’s money.
To find someone you can trust, look for someone that a friend or colleague can vouch for. You can phone up the people they do business with like customers, colleagues or any other stakeholder to make sure the potential partner’s reliable.
Another good idea is to have multiple meetings where you can socialise and discuss one another’s history of business.
As a last resort, you could turn to your family for the money you need. But taking money from your family is risky, so make 100% sure that you are ready for that commitment.
Clarify each investor’s stake and the role they need to play in building this empire. You can speak to a lawyer about drawing up a contract or visit www.freelegaldocs.co.za to find a free template.
Be sure to state everyone’s portion of ownership of the property empire. The size of each portion of ownership will depend on the size of the individual’s contribution.
You should also write down the consequences of pulling out of the investment. For instance, you could state a penalty for selling your share of the investment until a certain number of years have passed.