Stay Informed of New Property Developments
New property developments are usually quickly snatched up by investors with the right connections long before investors new to the game have an opportunity to find out about the property. The serious property investor needs to have ongoing contact with estate agents in South Africa who have good contacts with developers and is able to inform the investor timeously when property become available.
Build Up Available Capital
If you are serious about becoming a property investor you will need a certain amount of available capital to start off with. Many developers will require a deposit from a buyer to ensure that the investor is serious before agreeing to the sale; as an property investor you do not want to be in the position of having a excellent property investment opportunity but no cash deposit to secure it.
Obtain a Pre-Approved Home Loan
Be prepared for when a property investment opportunity comes your way obtaining a pre-approved home loan. This will ensure that you now exactly if you can afford the property and what information the bank requires from you.
Property Investment With Friends
If you cannot afford to invest in a property on your own you can form a syndicate with friends. You can co-sign for the home loan in your individual capacities or form a closed corporation.
Property Management Company
Find a good property management company to manage your tenants. They will be responsible for finding a suitable tenant, drawing up a contract, regularly inspecting the property, collecting the rent and the paying levies on your behalf.
Long Term Property Investment
The full potential of property investment is seen in the long term. While good profits can be made in the short term the big fortunes are acquired over long periods of time.