Essential factors to look for when choosing an investment property
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The Covid-19 pandemic caused economic downslides in many countries globally but investing in property still remains profitable in South Africa. Buy-to-let residences are a popular option for many. If purchased carefully, they can provide a reliable source of revenue over the years. Even in times of great change and financial uncertainty, property investments remain lucrative when one understands the possible risks and receives expert assistance along the way. If you are seeking to build a portfolio over time and reap the rewards of such investments, then we have a few, key tips for you.
What is an investment property?
Any real estate that is bought to generate income can be considered an investment property. It requires careful thought and consideration, calculating one’s likely return on investment rates, and one’s capacity to manage the space. Estimating potential yield also requires research into the rental rates of other similar properties in the area. For these reasons, choosing the right home in which to invest is often a complicated process.
Finding a great location
A superb location will always be the most crucial factor to consider because it impacts almost everything else about your investment. It will take some homework to identify appreciating and depreciating neighbourhoods in the areas to which you are drawn, but a reliable real estate agent can also assist you with this. Doing the legwork of consulting professionals and even locals in the neighbourhood can give you a better shot at selecting the right home for sale. The location also influences the kind of tenants you attract, as well as the residence’s vacancy rate.
Families will always look for easy access to good schools and recreational activities, while older tenants may emphasise medical care and retail facilities. Young professionals often wish to be closer to cities and business hubs for work purposes, so the location will play a role in who wants to stay in the property. Areas with phenomenal infrastructure, planned developments, and those that prioritise the safety of the community will attract a more upscale market.
When buying an investment property, it is not just mortgage or legal fees that one must consider – there is the aspect of flaws that need fixing. Choosing a place with minor flaws that can be quickly and easily renovated to increase market value is a superb idea. Some places, however, may need much more maintenance, which becomes costly in the long run. You should not have to spend mass amounts of cash every month to keep the property running smoothly. Be sure to hire the services of a professional inspector who can assess facets like plumbing and wiring, as well as any other potential issues with infrastructure that will need to come out of your pocket to fix.
Residences with long-term appeal
Property trends come and go, and it may not always be wise to buy a home simply for its design or facilities that are currently in demand. Purchasing timeless homes with classic designs that will remain beautiful and relevant for many years to come ensures long-term appeal. This, in turn, attracts long-term tenants. Lots of storage space, large kitchens and bedrooms, and durable building materials are features that are always in vogue because of their practical use.
Enlist the help of a professional real estate agency
There are various types of investment properties, such as residential rentals, holiday rentals, homes that can be flipped and resold, and luxury accommodation. No matter the property you are seeking, we at Fine & Country South Africa can assist you in finding something that accommodates your needs and finances. With years of expertise and a fantastic reputation for industry-leading services, you can trust us to make every deal a success.
For more information on our sought-after services, contact us here.