Are you looking for an investment property for sale? Keep these 7 things in mind.
Property has always offered an attractive investment opportunity to business savvy investors. Generally, a savvy buy will provide the owner with a number of advantages compared to other investments, such as the possibility of higher returns, investment stability, diversification of their portfolio, and inflation hedging. For those who have the capital available, it is an attractive prospect. However, as with any investment, you have to follow certain guidelines to ensure you extract the most value out of your investment. So, how do you know you are buying the right property in terms of optimal returns when considering all the options for sale?
Here are seven tips to keep in mind when looking at investment property for sale:
1. Set a budget and stick to it
Knowing how much you can potentially spend will help you refine your search parameters when searching for the perfect investment property for sale. This will also allow you to recognise properties that might need some work, and determine whether you have the funds available to turn a profit on it. Remember to take factors into account, such as transfer fees and the costs associated with securing the necessary finance.
2. Be patient
Investment is a game of patience. It is easy to get swept away with excitement when you see a great property for sale, but make sure that you take the time to do your research and weigh up all the factors that will influence the investment potential of this particular buy. The same goes for when you have made the purchase – remember that an investment takes time to realise the optimal returns.
3. Factor in the value of the location
When looking at a property for sale, remember that the location plays a vital role in the value. Less than desirable properties in great locations are, generally speaking, better investments than great properties in poor locations. This is because the location is one of the most impactful determining factors in the appreciation potential of properties. Look for properties close to amenities, such as schools, business nodes, transport routes, and shopping centres.
4. Always ask questions
Never assume that everything is as it seems, especially if you are not an expert in a specific field. Do not hesitate to call in the expertise of a professional home inspector, for example, to confirm things like the structural integrity of the building. This might be an upfront expense, but it could end up saving you thousands in the long run.
5. Consider diversifying
Investment always carries a certain degree of risk. To minimise your exposure to risk when investing in property, consider different types of properties for sale, as well as acquiring properties in a variety of areas. This means that your entire investment will not be exposed to fluctuations of one particular aspect.
6. Remember the maintenance
When buying investment properties, you should never become complacent and assume it will simply increase in value without any further investment. Make sure you do not neglect the maintenance of your properties if you want a good return on your investment, and to avoid having to spend a large sum on repairs before being able to sell it when the time comes.
7. Partner with an experienced professional
Any good investor knows to draw on the knowledge and experience of the experts to help guide their investment decisions. The same applies when buying properties. When you are looking for the perfect property for sale, turn to the leader in luxury properties – Fine & Country South Africa. Our team of knowledgeable agents are experts in the local market and will gladly work with you to find the right investment for you.