First-Time Investors Guide 2020 2020 - Page 16

Step 1 : Why buy now ? kids ’ education , or overseas family vacation , or buy more real estate with sizeable deposits and create even more income , without negatively affecting their current cash flow . You might be thinking this sounds like a pipe-dream , but it is possible and can be a reality .
“ If you don ’ t change direction , you are going to end up where you are headed ”.
Property has always been one of the safest investments and remains a market with resilience . People will always need a place to live and if they can ’ t buy , they have to rent – which offers some measure of security in terms of a property investment holding steady in volatile times . Real estate investing is not gambling , it ’ s not a quick buck or a scheme to make money overnight . It ’ s a process and it takes time with certain fundamentals being non-negotiable like cash flow , positive cash flow . Cash flow is like oxygen . If you have it , you don ’ t think about it too much . However , cut the supply and all of a sudden it becomes the only thing that occupies your mind .
Here ’ s some wisdom from the Late Jim Rohn :
“ Don ’ t let your learning lead to knowledge . Let your learning lead to action .”
Five years from now when people ask you how you recovered so well since 2020 , it will be what you actually did that will determine where you are , not what you intended to do . Buy cash flow positive properties now . With the low interest rate , it ’ s the perfect time to start investing , if you haven ’ t already . If you ’ re unsure of where to start , contact me , I have many years ’ experience and specialize in Investment Opportunities .
You can also check out an example of a cash flow positive property : The Base Apartments . Click the link more information , it could be a lucrative click for your future .
Sources Ryan van Heerden , Ryan ’ s Realty
Here ’ s my best advice , having survived ( only just ) the Global Financial Crisis of 2009 , which now seems more like a stroll in the park compared to the 2020 Covid chaos . Buy cash flow positive real estate that has the potential for capital growth , and you can survive just about any downturn or future crisis .
Step 3: Finding your Property & Location Step 3: Finding your Property & Location Millennial Property Buyers Piling into Top Gauteng Suburbs Millennial buyers are piling into the property market despite the belief that they would rather rent. This is no surprise, says Samuel Seeff, chairman of the Seeff Property Group, we are in the “perfect storm” for young home buyers who are using the benefits of buying right now and taking the property market by storm. Seeff’s first-home buyer areas, especially in the main urban areas, all report a surge in buying activity over the last three months, largely driven by the under-35 years olds. The transfer duty saving on properties below R1 million and favourable mortgage lending conditions, with some banks still granting full loans, combined with the low interest rate means that Millennial buyers can get into a property or suburb, which they might not have been able to afford a year ago, says Seeff. Tiaan Pretorius, a property consultant with Seeff Centurion says that any step onto the property ladder is a step in the right direction. Your first property may become part of your future property portfolio or can be sold for a deposit on your next property. The great news for starter buyers is that South Africa’s powerhouse, Gauteng, remains the top choice for affordable properties with the R450 000 to R1.2 million range picking up the bulk of activity currently. Most areas offer access to good transport networks and a host of amenities including access to shops, banks, schools and more. The most popular areas include: Protea Glen in Soweto from R400 000 Up to 40% of buyers in the Protea Glen area are Millennials according to Khosi Sibiya and Phindile Mphahlele, managing directors for Seeff Soweto. The popular price band is R400  000 to R700  000 for first-time buyers. Protea Glen is an excellent choice for its affordability and amenities and offers great value compared to suburbs in the Johannesburg South region. Weltevreden Park, Allens Nek and Olivedale in Randburg from R500 000 Randburg offers a vast range of affordable suburbs according to Duane Butler, Seeff licensee for the area. Areas such as Weltevreden Park, Allens Nek and Olivedale are currently a top choice for Millennial buyers as they offer access to great schools and amenities. You also have easy access to the highway and several main arterials. Prices start from just R500 000 for sectional title properties making it attractive for first-time buyers. Glen Austin and Noordwyk in Midrand from R400 000 Midrand offers great value for those working in 16 FIRST-TIME INVESTOR Johannesburg, Sandton, Midrand or Pretoria as it offers easy access to the N1 and M1 highway interchanges. With prices from just R400 000 in Glen Austin it is no surprise that Millennials comprise about 40% of the market. Noordwyk is another popular choice offering townhouses and houses from just R700 000 to R800 000. Paulshof, Douglasdale and Lonehill in Sandton from R600 000-R800 000 Charles Vining, MD at Seeff Sandton says that apartments are especially ideal for first time buyers and there is a broad choice of suburbs where they can buy in right now. Apartments and small townhouses in the R600 000 to R800  000 price band in areas such as Paulshof, Douglasdale and Lonehill are popular. Townhouses in the R700 000 to R900 000 range are popular in suburbs such as Buccleuch, Douglasdale, Sunninghill, Broadacres and Paulshof. Sectional title property is also drawing interest from buy-to-let investors given the high demand for rental accommodation near the Sandton CBD. Centurion West, The Reeds and Die Hoewes in Centurion from R500 000 Tiaan Pretorius from Seeff Centurion says that first time buyers have increased and are active in the R700 000 to R1 million range if buying on their own and up to R1.8m if buying jointly. Centurion is an attractive area for affordability with many units close to major highways, the Gautrain Station and all facilities in Centurion City. Popular suburbs include Centurion West, The Reeds and Die Hoewes. The latter for example offers 6 300 sectional title units priced from just R545 000 with about 30% of the market comprising of Millennial buyers. How to Choose Between Two Homes In life, we are often faced with the challenge of having to make a difficult decision and we often wish that we had additional guidance to point us in the right direction. One of these tough decisions is having to choose between two properties that you are interested in. Choosing one is harder than it seems, especially if you are a first-time home buyer because you have little experience to go on. There is also the sense of urgency because you don’t want to waste too much time trying to decide in case both homes are snatched out from under you. If you have reached the point where you have assessed both properties and still happen to have difficulty deciding, consider these factors: What is the price point of both properties? One of the very first things to consider is the price point of both homes. If one house is well within budget and the other is at the top of your price range, then it’s to be assumed that the decision process should be easy. However, often first-time home buyers are torn because the house at the top of their budget is slightly more upmarket or bigger. Ultimately, it’s your decision, but it could be safer to have a smaller bond and money in your bank account for day-to-day living, emergency expenses and savings. Location is everything Location is often the deal breaker, especially if one house has a shorter commute to work or is closer to other desirable amenities. But if both are similar distance-wise, then consider the quality of the neighbourhoods in each location. Neighbourhood quality can be an indicator of appreciation and market value. Ask your real estate agent for sales figures in each neighbourhood over the last few years to see which is increasing in value. More conveniences Knowing what is convenient for you could be the decision maker between two properties. Whether you are moving by yourself, or with your family, there will be certain conveniences that make a difference and can improve your family life. Look for those conveniences with each property you are indecisive about. Be it proximity to shopping malls, sports facilities, school districts, a range of amenities or any other factors – whichever house stacks up as the better choice could be ‘’the one’’ for you. Have a second(or third home viewing) Sunnyside, Equestria and Moreleta Park in Pretoria East from R500 000 Equestria and Moreleta Park are ideal steppingstone neighbourhoods for newcomers who wish to establish themselves as real estate owners and may at a later stage upgrade to more expensive property, says Gerhard van der Linde, MD for Seeff Pretoria East. Another popular area is Sunnyside which offers a great location and some 8 474 sectional title units priced from as low as R350 000. By now one property should be standing out more than the other on your pros and cons list. But it’s important to see each property at least a few more times. Something may spring out at you that you didn’t notice before and that might be the deciding factor. Try to visit at different times of the day so you see the home in a different light each time. Additionally, do a drive-by in the morning or evening during rush hour to see if there’s traffic build up. Van der Linde reminds young buyers that they should start their homebuying journey by getting a pre-approval done so that they can buy with confidence. It saves a lot of time, especially in this market where you want to take advantage of the favourable conditions as quickly as possible. A property may seem perfect at the time, but its appeal can diminish as the years go by. Keep the next five to ten years in mind when you are looking to purchase. Will your family be expanding? Will your children have moved out of the house by then? Are rooms large enough for your family? Is there a garden and lawn for the younger kids and pets to play in? Sources Seeff Property Group Buying a home is a major life investment for most people and should only happen once you are completely at ease with your choice. At the end of the day, you have to make a decision that’s right for you and your family. Think of the future FIRST-TIME INVESTOR 17