Five Most Common Property Investment Mistakes in Johannesburg
by: Anita Lyon
There is no such thing as the ‘perfect investor’, we all make mistakes and when it comes to the Johannesburg property market, things have the capacity to move fast and overwhelm if you aren’t prepared. Even Donald Trump himself has declared bankruptcy three times over the years, which only highlights the point that you can not afford to get over confident or too laid back in your approach. We’ve listed five of the major key points to bear in mind.
1 – Have a Plan
You wouldn’t attempt to play the stock market without some idea of what your goals were, whether you intended your investment to be long or short term or what your financial expectations were. Well it’s the same thing in the property market. You need to identify what your budget is and you need to be thorough as well as accurate in working it out.
2 – Remain Detached
Too many investors look at a piece of Johannesburg real estate and get their hearts set on it on first sight. This is a common human error but one the savvy investor can not afford to make. Stick to the plan that you came up with or you risk making a very costly mistake.
3 – Poor Selection
Whether you intend to fill the property with tenants or live there yourself really doesn’t matter because in either case your aim is to purchase Johannesburg property which will appreciate in value over time and at the highest rate which you can afford. Location, location, location. This is the golden rule so don’t buy right next to the shops or railroad lines but buy in close proximity. You want your purchase centralised not vandalised.
4 – Lack of Research
A brief glance through a few local papers may give you an idea of the price range of the area but that isn’t enough to make an informed decision. Talk to the estate agents in the area, and make sure that you visit properties which make it onto your short list at different times of the day to get a proper impression of the views and sounds.
5 – Cutting out the Middle Man
If your interest is acquiring properties as an investment and filling them with tenants, then you’ll need to consider hiring a management agency to deal with your tenants. If you have the time available then you can certainly save a lot of money by performing this function yourself, but tenants can get pretty demanding of your time. As your Johannesburg real estate portfolio increases, you may find that you’d rather use that time to focus on your next goal instead of taking a spanner to the plumbing piping.
And that concludes our breakdown but there is certainly a lot more to learn. Stay alert and take keen note of everything you learn along the way. Every inch of information counts in your favour when it comes to successful Johannesburg property investment.
About The Author
Anita Lyon is a Professional freelance SEO Copywriter and writes on various topics. Gain a better understanding and perspective about Johannesburg Property by talking with some of the best commercial property brokers so you can ultimately find your ideal Johannesburg real estate. http://www.renpropresidential.co.za/property/
