Here’s why first-time property investors should NEVER sell
The Property Buyer Show has released a list of the big players in the industry that will be involved with the show, taking place at the Cape Town International Convention Centre from 8 to 9 April, as event sponsors.
The impressive list of sponsors ranges from Pam Golding Properties which will be sponsoring the Property Investment Theatre, to Standard Bank, sponsoring the First Time Buyer Theatre, and Balwin Properties which will be showcasing at the event.
Considering the general positive outlook for the first-time buyer market, especially after the recent tax break in the form of the transfer duty bracket shift, it is no surprise that the sponsors and exhibitors are looking to connect with and build lasting relationships with these potential buyers.
#1 Investing in property is not a get-rich-quick type investment; it is a long-term investment, and one that you will have to see through potential ups and downs before seeing a real return on your investment.
#2 Unless you are fortunate enough to have a large amount of capital to buy numerous properties at once, rather focus on one property at a time and only when you have enough surplus capital or income to then look at buying another investment property.
#3 See each property that you buy as an investment almost like another member of your family, one that will be with you for the long haul. The only way your investment properties can make you money is by keeping them – that means do not sell them, not even to use to buy another property!
#4 Do your homework when buying residential investment properties. Make sure you buy in the markets and areas that have the highest demand for rental properties, giving you the best rental rates. Don’t discount flats or townhouses – they can offer some of the best returns. And remember to make this purchase with your head and not your heart – you are not going to live in this property!
#5 Focus on the income that your investment property can give you. By focusing on the income you will be able to reach break-even faster on your investment than if you were focusing on capital growth. The more income you are able to collect each month from rentals, the greater chance there is that you will have surplus monies to buy another investment property and thereby continue to grow your property portfolio.
#6 Unless you are facing some sort of financial disaster – DO NOT SELL any of your investment properties. The costs of selling a property are high and you will lose profits!
#7 Remember to include your own home as part of your investment portfolio, and try to avoid the need to keep up with the Joneses. When your income increases rather than looking to buy a bigger home, why not rather invest that money into another investment property and increase your future earnings.
Nedbank, which will be using the show to engage with buyers and empower them with the necessary tools and knowledge for their journey to becoming a homeowner, is focused on providing first-time buyers with the toolkit required to get a foot on the property ladder.
The bank has produced a comprehensive buyer education brochure and videos that are mostly targeted to first-time home buyers as a way to prepare them for becoming homeowners. The guide provides valuable information from how to get started on the home buying process (being mentally and financially ready), to types of homes and all the information potential homeowners need in preparing them for this journey.
FNB will be sponsoring the Finance Zone and showcasing nav>>. The bank recognises the importance of education throughout the process, long after the sale has been concluded, and says that this is exactly why it is so excited about nav>>.
According to FNB there is no perfect first-time buyer, no income or financial readiness is considered preferential, what is important though is that you take care of your credit record to ensure that you are looked at positively when your bond is considered.
Once a first-time buyer’s bond is approved, nav>> offers a step-by-step guide which will inform the buyer on what to expect. There is even a move calculator which helps buyers calculate, plan for, and, most importantly, budget for their move.
Private Property, which will be exhibiting its portal services at the event, has taken reaching out to, engaging and connecting with first-time buyers to the next level with numerous marketing campaigns and informative information being shared.
How the portal is educating first-time buyers
- Educational video inserts answering and sharing the information related to general property-related Q&As received from customers.
- Inserts in TV shows answering common property-related questions via SABC 3, Top Billing, Expresso and Afternoon Express.
- A downloadable brochure for first-time home buyers.
- The portal has been the key sponsor in Win A Home, a reality show featuring property-related tips and inspirational homes.
- This year the portal will be involved in a 13-week show on DSTV called “Vat you goed en trek”. It is about the process of selling your home and how one goes about this.
It is exciting to note that the industry’s professionals are passionate and serious about arming consumers with the tools and knowledge needed before they leap blindly into the biggest financial decision of their lives.