Key Factors to Consider Before Investing in Real Estate

by Quanita Chohan • 3 MIN • 588 Words

Here's our tips to consider before investing in property.

The increasing demand for rentals in Welkom has attracted new and emerging investors aiming to fill the market gap. While many have achieved success, some have faced significant losses. Currently, there are a few excellent investment properties available for sale in Welkom, that are worth considering.

Location Location Location:
The importance of location varies depending on the type of accommodation you plan to purchase. For properties aimed at lower-end market rentals, proximity to town is crucial, like in Doorn and the upper part of Bedelia. On the other hand, if you aim to attract more upmarket tenants, areas like St Helena, Jim Fouche Park, Jan Cilliers Park, the top part of Dagbreek, and Flamingo Park are worth considering. These tenants prioritize security and the neighbourhood, and they don't mind a short commute to town.

Inspect the Property:
Before finalizing the property purchase, conduct a thorough inspection of the building. Check the roof for leaks and assess the plumbing, pipes, taps, and geysers. Engage professionals to provide you with a comprehensive report, even if it incurs additional costs. This will ensure that you have all the necessary information to make an informed decision and be prepared for any potential repairs and maintenance expenses after the sale.

Additionally, request building plans to confirm that all structures are compliant. Assess the property's potential for future expansion, considering the available space for additional buildings.

Take the time to view the entire property before proceeding with the paperwork. If the property is fully occupied, the managing agent should be able to arrange a viewing for you, considering the significant investment involved. Keep in mind that the agent may only showcase the best unit in the complex, so thorough inspection is vital.

Examine the condition of the unit's finishings, including flooring, paint, kitchen, and bathroom. Consider whether upgrades will be necessary in the near future, as this can impact the rental income potential. If upgrades are required, it presents an opportunity to incorporate your style, but it's crucial to budget for these expenses to ensure a smooth cash flow.

Review the Income & Expenditure:
Ask your agent for the lease agreements, monthly rental statements, rent rolls, municipal accounts, insurance policy, and any other recurring expenses. Having these documents will help you understand your monthly running costs in comparison to your income. Make sure you receive actual copies of the statements and documents to ensure accuracy and transparency.

Get Professional Guidance:
Consider seeking professional guidance from a property manager specialized in assisting investors in building their rental portfolios. Find a property manager who understands your unique situation and can tailor their services to provide you with a personalized experience. Their expertise will offer valuable insights and support you throughout the decision-making process, ensuring a smoother investment journey long term.

Effective property investment hinges on excellent management. Collaborate with a trustworthy property manager who possesses the necessary knowledge and expertise to efficiently handle your property, thereby reducing long-term risks.

At Q Prop, we are dedicated to delivering personalized service, ensuring a high tenant retention rate, and offering comprehensive management services, including rent collection, municipal and maintenance management, legal compliance. Click here to schedule a consultation and get started today!

Read More:

Invest in Welkom: A Smart Move in a Growing Real Estate Market

The Advantages of Buy-to-Let Property Investment

The Key to Thriving Property Investments: Why You Shouldn't Go Solo

Recognizing the Warning Signs of Mismanagement in Your Investment Property

3 Reasons to Hire a Property Manager

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