Location – an essential element of Sandton Property in Sandton
To a complete beginner, novice, or inexperienced property buyer, making a property investment in Sandton or anywhere else may sound like the simplest thing in the world. After all, what do you need, other than an owner, who possesses a property that’s for sale, plus yourself – the interested, buyer or investor, who has access to enough money that enables you to meet the terms of the transaction?
You may need to add a few negotiation skills to the equation, but essentially, the deal – the property investment – should or could now be successfully concluded – or so the inexperienced person may think.
However, this is far from the truth. Although you may be really lucky and manage to make a sound investment with little other than a seller, buyer, property, its price, and funds to make payment/s, this is extremely unlikely and fraught with risk. You should be limiting or avoiding risk factors.
Gamble in a casino, not with property
If you thrive on games of chance or are excited at the prospect of balancing on a financial tightrope, visiting a casino is possibly a safer bet for you. Avoid gambling on (investment) property, even if it is a Sandton property. Many vitally important factors, besides those mentioned, must be considered when engaging in property transactions, particularly investment value or potential.
Location, location, location
Worldwide, one single word, “location”, repeated three times, is arguably the most crucially important aspect to consider when investing in residential, commercial, industrial, business, agricultural, or other type of property, without fail or exception.
This is universally recognised and applied by wise investors, so it’s worth spending a little time on this essential aspect. The location of a property can make and enhance its investment value. Although there are no guarantees, a premier area, such as Sandton, tends to be a sound option.
A poorly chosen location will sink your investment, perhaps not at once, but most certainly in the medium to longer term, the typical optimal length of time in which most property investments escalate or mature.
Two types of property investors
There are two types of property investors. Those who are sufficiently wealthy to have extensive investment portfolios, often including properties in their investment basket. They may not occupy the premises, but either buy to let the property to others, who become tenants, or they keep it for a while for the intention of selling it again, at a profit.
Others, notably the majority of property owners, purchase residential property which they occupy as their primary or secondary residence. Holiday homes are examples of popular secondary residences. Despite not being “pure” investors, this group nevertheless also wisely adheres to the mantra “location, location, location”, because no one in their right mind deliberately buys fixed property that is likely to decline in value, simply because it is located in the wrong area.
Property transactions involve the exchange of sizeable amounts of money, and are thus viewed as investments by all groups of buyers and sellers, be they absent owners (landlords), or occupant owner.
One day, whenever that may be, when the erstwhile buyer becomes a seller of land, a house or other building, he or she expects to receive more for the premises than what they paid initially. The difference between what they paid and what they receive as sellers, less payments made, inflation, and the cost of improvements and maintenance, is their profit – the capital growth and value of their investment.
Sandton investment property specialists
Fine & Country South Africa is instrumental in the successful sales of a great deal of upper quartile properties in Sandton and other affluent areas in this country. With our specialised local knowledge, expertise, commitment, and connections, we’re best placed to guide you through your property transactions in Sandton.