What is Property Investment?
Real Estste Investment
Investing in property means buying real estate with the goal of making money, whether by renting it out, selling it later at a higher price, or by doing both. This type of investment can be part of a portfolio for an individual, a group, or even a corporation.
Buying Property for Rental Income
Investing in a rental property in South Africa can be a smart move, especially in a buyer’s market when property prices are negotiable. Lower mortgage rates and smaller deposit requirements make financing more accessible. However, it’s important to buy at the right price to ensure future returns.
Here are some key tips for success with rental property investment:
Focus on high-demand areas
Thoroughly research the market before investing
Negotiate wisely to get the best purchase price
Carefully select tenants to minimise risk
Is property a good investment in South Africa?
“Property is a good investment, as it will appreciate over time, allowing you to build wealth in the long term, Keshnie comments. “Even in tough times we know it's a buyer's market, which means there are more properties than there are buyers. This places more power in the buyer's hands. They're able to negotiate better. Sellers are more inclined to drop prices in these conditions to sell their property.”
Buying property for rental income
It may be a good time to purchase property, particularly if you intend to it rent out. In the current buyer’s market, property supply exceeds demand. That means sellers are often willing to negotiate on their asking price to secure a sale (often by as much as 10 to 15%).
