2010
Property Investment Tips:
Don’t we all share the dream / desire to be wealth, to live comfortably, or to be able to retire while still receiving an income that increases each year?
Well, property is one investment that can offer you a clear path to these goals.
Being wealth does not mean having a high paying job. A good job does help, but the problem with jobs are that if you stop working, your income stream will also dry up. Also, jobs can not be passed on to your family.
On the other hand, Property investments provide you with a passive income. That’s money you’ll earn without having to work. Who doesn’t like the sound of that?
Property can also to left as an inheritance for your family.
The other advantage that investing in property offers is something that most successful business use to great effect.
Leverage.
Begin able to use other people’s skills, other peoples’ money and other peoples’ time to produce an income is vital to becoming financially free.
Investing in Real Estate gives you all three of these, at little to no cost!
By using a real estate agent, and a bond originator you get the use their knowledge and skills – for free.
By using a bank to finance your next property purchase, you are getting to use their money to make an investment. You only have to repay the loan over 20 or 30 years.
Also, your tenants are working everyday to pay off your bond, that other people using their skills, time and money to repay your loan!
GET STARTED TODAY!
If you’re currently renting, I hope you now see that you’re on the wrong side of the property game. Speak to a bond consultant, to find out how much the bank is willing to lend you, and become a homeowner as soon as possible!
FOR NOW:
You can lean how to invest in property and get access to the best investment properties here
Category : Property News &Property Tips
Are You Really Ready To Own A Property – Take The Test
Most would agree the getting into the property market early is best, but this is not always true and owning a property can become a huge burden if you rush into the decision.
In fact, figures show that the average age of new homeowners is growing.
In recent years the average age of first time home buyers in the U.S has risen from 27 to 33, while in the UK the average age has risen from 27 to 34.
The trend is similar in South Africa, where the average age of new home-buyers has risen from 28 to 35.
These figures seem to highlight the fact that many young buyers may be shying away from the responsibilities of homeownership during their early working years.
Factors such as affordability, freedom to travel, financial security and the likelihood of having to relocate have contributed to this trend.
To fully appreciate a new property purchase, and avoid it becoming a financial burden you need to ensure that you’ve consider each of the following questions carefully:
- Are you ready to the responsibility on owning your own property? Homeownership comes is the very serious responsibility of having to repayment a homeloan. A mortgage is often the biggest financial commitment most people will make in their lives.
- Can I afford the extra costs of homeownership, such as: Levies, Rates and Taxes, and Household insurance?
- Do I have a secure income (Job or Business) that will aid me to pay off my bond?
- Will I be happy to live in or hold the property for at least 5yrs – 10yrs? There are very few quick fixes in real estate. Be sure that the property you’re buying is going to cover your needs for the next few years.
- And finally, will I qualify for a homeloan? Banks now require you to have very good credit record before considering granting you a bond. Ensure that your bills are all paid on time and in full for at least 3 months before you decide to apply for a mortgage.
Category : Buying Property &Property News &Property Tips
The municipal valuation process is already well under way in South Africa, and many property owners would already have received notifications regarding the valuation assessment of their properties.
Cape Town homeowners are currently able to view their valuations online at www.capetown.gov.za/propertyvaluations.
The key to ensuring that your property is not over or under valued, resulting in an incorrect rates bills is to arm yourself with the knowledge needed to appeal your valuation.
According to Pam Golding Properties the onus is placed on you, the homeowner, to prove that your property has been incorrectly valued. And a valuation from an Estate Agent is not going to be sufficient.
What’s needed is an independent and unbiased report from a valuator, not an estate agent. We would recommend contacting the South African Institute of Valuers at www.saiv.org.za or 021 762 3313, to find one specialising in your area.
Also, you would do well to source a report of recent sales in your neighborhood, to use as a comparison. This is be obtained from your local deeds office, or you can request a report via the website: www.lightstone.co.za
Valuation Objection forms can be submitted by email to by fax to 086 588 6042 before the end of April 201
Category : Pam Golding Properties &Property News
The decision by the South African Reserve Bank Governor, Gill Marcus, to cut interest rates by 0.5% was a surprise welcomed by most property experts. The prime interest rate will move from 10.5% to 10%.
The last time the prime interest rate was at 10% was in 1981, and some economists are predicting another small rate cut before the end of 2010.
Adrian Goslett, CEO of RE/MAX, believes the cut in interest rates is a good move for the local property market
Andrew Golding, CEO of Pam Golding Properties and President of the IEASA, also believes that the banks would be more willing to relax their lending cretria now that interest rates have dropped.
Category : Home Loans &Pam Golding Properties &Property News &Remax Properties
If you’re looking to sell you property in a hurry, at a profit and want to avoid having to pay any agent fees then you should consider putting your property on auction. That’s according to Jackie Cameron, founding editor at Realestateweb, who’s recent frustration with dealing with lazy estate agents was eclipsed by the pleasure of dealing with an auctioneer who was clearly passionate about getting the property sold.
In her review of the process she explains how Auction Alliance had used “massive advertisements in national newspapers” that made their property look like “the star of the show”. This was in contrast to the very forgettable stamp-sized adverts used by every other estate agent. Adding to her experience was Auction Alliance’s ability to connect their property to willing potential buyers. Their database included young first time buyers as well as hard-nosed investors.
After their auctioneer had come around to view there property, he discussed what the property would likely sell for and set a confidential Reserve Price. There would be no sale if the reverse price was not met. In truth their auctioneer was so confident that the property would sell, that he was able to point out which of his potential buyers were mostly to be the next owners of the property.
Click Here to read now the real estate auction ended.
Stories like these really do help to break the stigma that surrounds auction sales. The traditional thought about auctions is that properties are bought at huge discounts from desperate sellers. In fact, auction houses have repositioned their businesses and have distanced themselves from the old estate agents methods. Auctioneers are younger, more energetic, and willing to work. They’re putting more time into matching properties with suitable buyers. And by doing so are adding value to their buyers and their sellers.
Have you had a similar experience with a Real Estate Auction? Please share you story with us.
Category : Property Tips &Real Estate Auction &Selling Property
Turning your property investment into a huge success does not require much risk taking, or even much capital. By following the basic principles of property investments you can easily avoid the common mistakes, and quickly build up your
portfolio.
Here are 3 ways to increase your property investment return
1# Renovate a rundown property
2# Buy a repo property
3# Choose the right locations
Renovating a rundown property is a hugely popular choice among many investors.
This option draws on every key aspect required to be a smart and successful property investor. The first step in this process is to find a cheap property that has potential to attract a high rental or reselling price.
To do this successfully you will need to do some very detailed research, and often you may need to know more about a property than the owners do. Recent sale prices, trends, future projections or planned community upgrades – these are just some of the things you would need to research.
Following that you would look to add value to the property. Aim to add an extra R3-R5 of value for every R1 you spend on the renovation.
and finally, work quickly to get the job done and work within a detailed budget.
Buying a repossessed property:
If you are not confident about you renovation skills, you should consider searching through the repossession lists.
Repo properties are often sold and a huge discount as the banks are keen to off load these properties and recover some of the outstanding debt.
South African Banks are even willing to sweeten the deal on these sales by offering full 100% bonds and discounts on the attorney costs.
Its not too difficult to pick a cheap repo property, that is able to attract a decent rental income.
Choose the right locations:
Everyone will tell you that property is all about location. I would agree, but the best locations may not be in the most popular areas, rather the best locations are in the areas that you are most familiar with. Stick to what you know. The more information you have about an area (or property) the likely you are the make a sound and profitable decision.
Category : Property Tips
The RealEstateWeb ran a very interesting article recently about the three types of property investors; namely the Speculator, the Refinance Man, and the Traditional investor.
The speculator buys neglected properties in good areas, renovates them and then tries to sell the property at a profit. This is commonly known as house flipping. Flipping can produce significant profit over a relatively short period, but carries with it some hurdles. The added risk, tax and elbow grease needed often deters many would-be speculators.
The refinance man, focuses much more on capital gains. He typically refinances his properties once the rental income exceeds the bond repayments. In this way he avoids being taxed, and has additional cash to invest into other properties. If you’re interested in going this route you may want to align yourself with a good bond originator who will be able to lower your refinancing costs, and offer you a share of their commissions from the bank.
The traditional investor is interested in building his income statement through rentals. He plans to be debt free, retire and live off the rental income. By not selling his properties he also avoids having to pay Capital Gains Tax, and he avoids the burden of having to find a suitable investment to place his money in if he keeps refinancing.
[ read more here ]
During tough times the speculator may struggle to find buyers for the properties he has renovated, while during a boom the refinance man could struggle as most people prefer buying and the number of rental tenants drop.
At the start of 2010 South Africa finds itself in a very interesting position, property prices are increasing and most analysts are optimistic about the year to come. While at the same time, the banks are concerned that many buy-to-let investors will struggle to find tenants try after the world cup, and be forced to sell their properties.
Prediction: Property prices will continue to grow during 2010, but if you hold out you might be able to find a bargain 2 or 3 months after the FIFA World Cup
Category : Property News &Property Tips &Rental Property
Property Rental News: Which rental properties attract tenants with the best payment behavior?
If you are considering buying a property for investment purposes in South Africa, with the intention to rent it out, one of your first consideration would be to find a property that will attract lots of potential tenants, with good payment behaviours.
The Rental Payment Monitor, a report by the TPN Credit Bureau suggests that the best tenants are found in the Eastern and Western Cape, for properties with monthly rentals between R3 000 and R7 000.
According to the report tenants who pay between R3 000 and R7 000 per month toward their rent are the least likely to miss a payment.
On average, 82 percent of tenants in this rental bracket were in good standing, with 71 percent of them paying on time.
The TPN Credit Bureau considers tenants to be in good standing if their rental is paid on time or even on the last day of the month.
Meanwhile, the data has also shown that properties rentals at the highest bracket (R12 000 or more) are showing signs of trouble.
As much as 21% of tenants in this bracket made no payments toward their monthly rental during the final quarter of 2009.
Key Payment Behaviour stats:
21% – Tenants, paying over R12 000, who made no payments toward their monthly rental.
14% – Tenants, paying under R3 000, who made no payments toward their monthly rental.
14% – Tenants, paying between R7 000 and R12 000, who made no payments toward their monthly rental.
11% – Tenants, paying between R3 000 and R7000, who made no payments toward their monthly rental.
Nationally:
76% – Tenants living in Gauteng, who are in good standing
85% – Tenants living in Western Cape, who are in good standing
86% – Tenants living in Eastern Cape, who are in good standing
Category : Property News &Rental Property