If you’ve been considering taking a dive into the real estate pool, property investment expert and author, Francois Janse van Rensburg, offers some finance tips on buying to let…
Here are Francois’ top 5 finance tips:
Buying to let has relatively few risks
With property investment, you’re guaranteed a return; you don’t need to worry too much about fluctuations in the economy, as you would with most other investments; and best of all, if you don’t have a lump sum of money, banks are always willing to lend a hand.
Here are a few ways to save on other investments you might make in life:
9 ways to save on life stage expenses
You can invest in property at any time
Generally, there is no good or bad time to buy. If you want to buy to let, do your research into the market, then keep your eye on any developments for a good few months before making a move.
Negotiate on every deal
About half the time, investors succeed in getting the price down, especially if they can offer cash to a seller who is pressed for time.
Avoid buying to sell too early on
Buying to quickly renovate a home or develop for a prompt profit carries a lot of risks, and you need plenty of funds to carry you through the process to the point of sale. By buying to sell, tenants help you start paying your bond immediately, even though the payoff will open happen years down the line.
Location is of supreme importance
It’s essential to identify the trends affecting various areas. You might find a property with a high yield, but in a bad area, or you might be tempted to buy in an area that’s popular now, but is showing signs of decline. Choose an investment property on its potential ability to attract tenants five, 10, or 15 years down the line.
Francois’ book Making Money Through Buy-to-Let in South Africa is out now.
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