Buying a property will always be a form of saving.
Investing in property creates the opportunity for capital growth, whereby you can sell the property at a profit one day.
We buy to stay or to invest further, and buy a property to let to tenants.
We can buy residential properties (flats, townhouses, houses, student – or holiday accommodation) or commercial properties (offices, shopping centres, factories, or storage facilities). You can also buy shares in property consortiums that buy properties to let.
We all need a place to stay, called our primary residence, where you build your life together and raise a family. Usually, close to your children’s school or close to your workplace.
When buying a second property, you become an investor who buys to let. It is recommended to always start small without taking risks. Buy a flat and renovate it, rent it out and pay your expenses. Try to cover your bond and other expenses with income from the property. Get the experience, learn from your mistakes and then buy your next property.
Never attempt to buy a property you do not know anything of, in an unknown area, where you are uncertain about the rental demand.
Take a limited risk and ask for professional advice and get a second opinion before you attempt to buy anything.
Should you have any queries or would like more information on this topic you are welcome to contact our Property Practitioner, Liezel Britz on 079 298 0924.