Learn how to Create Wealth through investing in property
Residential property prices have declined in a big way over the past seven years and there is an increased demand for rental properties as a result.
When it comes to finding the right tenant to place in your investment property, there are some important considerations to take into account when deciding on the type of mandate to give your rental agent. Michelle Dickens, managing director of registered credit bureau Tenant Profile Network (TPN), explains that there are some serious shortcomings to consider when issuing an open mandate, as opposed to a sole mandate.
Perhaps you made the decision to buy a property in the name of a company registered with the Companies and Intellectual Properties Commission (CIPC). At the time when most people used this legal vehicle, it seemed like a wise decision as it saved transfer duties, it was easier to sell shares or membership and it was used to secure a legally-sound investment.
Many people tend to see property investment as a risky and market dictated way of investing. Learning to buy property as an investment the proper way will help you to remove these factors from the equation and help you to be able to get maximum growth from your investment at a minimal risk.
The big benefit residential property has over other types of investments is that you don’t need much money to get into the game relative to the size of the asset you are buying. You can put down a deposit and, provided you have a good credit record and can prove you can cover the monthly home loan repayments, it is fairly easy to get a bank to cover the bulk of the purchase price for you.
The best philosophy to adopt is to realise that your primary residence is both an asset and a lifestyle choice, whereas your apartment portfolio is comprised strictly of investment properties, which means that you will look at different factors when buying purchasing these properties.