Offshore Guidebook | Real Estate Investor Magazine Offshore Guidebook 2016 | Page 17

Sandton offices since 2008. As a result, the company is well-known as Southern Africa’s specialist for promoting Cyprus as an ideal destination for property investment, acquiring permanent residency/ citizenship, immigration/retirement and starting a European-based business. From tenants to investors Jenny says that she and her husband were tenants for many years while living in Johannesburg: “It made financial sense at the time, as we had a young family and growing businesses. When we moved to Cape Town, we rented for a year to get a feel for the areas we wanted to consider in terms of accessibility to schools.” “While renting, we had saved up a decent deposit. When we found the right property, we secured a mortgage and purchased our first house in the suburbs. We has also saved up enough to do a complete refurbishment. We sold the property within a year, which means we benefited from paying minimal interest on the loan and also made a substantial profit, so we had an even bigger deposit for our next home,” comments Jenny. “It was at this time that we realised the immense importance of buying in the right area to successfully fix and flip a property. The investment in the renovation was well worth it: we changed an average, dated house into a modern home, which meant it had market appeal and was an easy sell. The lesson we learnt is that it’s advantageous to buy a decent house in a good area: there is always a high demand for properties in those suburbs.” Jenny adds that selecting investment properties, acquired with the view to rent them out, involves different motivators. “When buying an investment property, we are critical about location appeal, market growth, rental returns and, of course, affordability.” “At every stage of our journey, we were aware of the role of the right property in realising our immediate needs, in creating additional income and in legacy planning. And at every stage we were, and still are, critical about aligning ourselves with the right individuals and companies who could give us the best advice and service,” she says. Advice for women who to start invest in property • Take control of your own future and have the confidence not to leave such an important decision solely to someone else. Ensure your voice is heard if making the investment decision with a partner, especially if you are contributing financially. www.reimag.co.za • Don’t let fear stop you from entering the property market. You can up-skill yourself by attending property-related conferences, seminars and networking events. Subscribe to industry newsletters and research the best-ofbreed services providers (mortgage providers, attorneys, estate agents): you want to build a relationship with them. • Chat to a mortgage specialist about the ins and outs of qualifying for a home loan, the longterm commitments and all the costs of buying a property. You need to be clear on what you’re in for - now, on transfer and in the long run. • Be clear on the reason why you want to buy a property. You will approach the purchase decision with a different mindset if you want to create a home for a growing family than when investing in a property to rent out to a tenant to earn a subsidiary income. JENNY’S FIVE TOP TIPS FOR PROPERTY INVESTORS 1 2 .Be clear on your short, medium and long-term financial goals, so that your property investment will always fit into your plan. .Thoroughly research the property’s location and accessibility to amenities, facilities and infrastructure. Analyze the reasons you’re interested in the property and the issue that concern you: these will be the same reasons and issues a potential buyer will have when you want to sell in the future. 3 .Deal with credible people, companies and service providers. Take time to research with whom you are dealing and be clear on all of the fees that will be charged. Don’t be afraid to ask for referrals and take the time to actually call those people, so you can have peace of mind that the person/company is the right choice. 4 .Ensure you can comfortably afford the monthly instalments. If you are renting the property out and relying on that rental income to subsidise the mortgage instalments, have at least four months’ rent in reserve in case your tenant defaults. It takes time to evict a defaulting tenant! 5 .Take your time and don’t feel pressurised into making financial commitments until you feel certain it is the right decision and will meet all of the property goals you’ve set. There will always be a good deal to be had. Offshore Handbook 2016 15