Smart prop­erty in­vest­ing tips

Lesotho Times - - Property -

AS with any in­vest­ment, there is a risk. in­vest­ment is all about iden­ti­fy­ing that risk and man­ag­ing it. So you need to make sure that you are not learn­ing the hard way and get it right the first time. Here are my top 5 tips to be a smart prop­erty in­vestor.

Tip #1: Set your goals it is an ab­so­lute must to set goals if you want to achieve any­thing, let alone a prop­erty port­fo­lio. A sim­ple plan writ­ten down on a piece of pa­per can help you re­mem­ber your goals for prop­erty in­vest­ment and help you move along your prop­erty jour­ney.

When it comes to prop­erty in­vest­ing, it is mostly about the ap­proach you take in terms of strat­egy. dif­fer­ent in­vestors have dif­fer­ent goals and con­straints.

those will de­ter­mine what struc­tures you use and the fi­nan­cial strate­gies you em­ploy. Once you put your plan to­gether you will be in a bet­ter po­si­tion to reach your short, medium and long term goals.

Look for fee-for-ser­vice agents who can guide you with your in­vest­ment prop­erty jour­ney rather than those who pro­mote stock from de­vel­op­ers and get com­mis­sions paid. Tip #2: Anal­y­sis and Re­search the rea­son many peo­ple fail to buy a good in­vest­ment prop­erty or one that has good re­turns is be­cause they fail to do their re­search.

Many first home buy­ers think that fol­low­ing the same route as buy­ing their owner oc­cu­pied prop­erty should get them a good in­vest­ment prop­erty. in­vest­ment is so dif­fer­ent in that you need to buy based on facts and fig­ures, and take the emo­tion out of the trans­ac­tion.

Al­ways buy with the re­sale value in mind and look to add value to it. Sim­ple ex­am­ples in­clude kitchen

and bath­room ren­o­va­tions.

Tip #3: Fi­nance — bor­row us­ing the right struc­ture us­ing the right struc­ture to bor­row is as im­por­tant as buy­ing the right prop­erty it­self. Al­ways keep in mind the fol­low­ing sim­ple but ef­fec­tive tips:

if you are ex­tract­ing eq­uity from your owner oc­cu­pied debt, make sure you ef­fi­ciently split the loans into tax-de­ductible and non-taxd­e­ductible por­tions.

Have a flex­i­ble debt struc­ture to ac­com­mo­date changes. tip #4: Prop­erty man­age­ment

Tip #5: Pro­tect with in­sur­ance You need to con­sider two kinds of in­sur­ance whether you are a se­rial in­vestor or just a one-home owner. One is in­sur­ance for the prop­erty and its con­tents, if any.

the sec­ond is per­sonal in­sur­ance to pro­tect you should there be a sit­u­a­tion when you can­not work and have a debt against the house.

Fol­low the above tips and you can build your prop­erty port­fo­lio with min­i­mum stress and also reap the benefits of own­ing it.

— Women­sagenda.

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