Block 2 : Make the
Auditor General Your Friend The delivery of quality services by municipalities is at the heart of well-functioning local economies . Unfortunately , we know well we cannot take such service delivery for granted in South Africa . Would you rather invest in a property in a Municipality that is functioning well or in one where service delivery is collapsing ? Let the Annual Report by the Auditor General be your free research tool to ascertain where exactly Municipalities are performing and where they are not . NB : Midvaal was the best one in Gauteng last time I checked the report , Emfuleni was pretty awful , and the Western Cape is leading by example
Block 3 : Use the
Power of Slip Streaming As a keen cyclist , I know the benefits of “ slipstreaming ”. How can we do the same with Property ? Well , when the big money gets into action mode , don ' t be asleep . Monitor and learn where the big residential and commercial REITs are deploying new money . Know where Public Private Partnerships are taking place and where massive new construction projects are awarded . Such types of large , fixed investments are often very likely to create a positive endowment and spill over effect in the surrounding areas and properties . Get into the slipstream of big money and find opportunities for yourself without the grind of doing your own research .
Block 4 : Monitor Replacement Cost The property market , like any other market , is all about supply and demand and supply is a function of both existing stock and new stock being new build and new developments . Builders and developers need to make a sustainable profit in order to continue to bring new stock to the market . So , how do the prices per square meter compare beween existing used stock and current building costs ? Where new supply is lacking due to the economics , a long-term cycle of appreciation is surely brewing . Be patient and you will reap above-average results . That ’ s why I like to invest in areas where there is no new competition .
Join one of our educational programmes and masterclasses to get access to the full area scorecard and more details .
Ultimately you might want to consider this :
• Avoid investing with emotions and follow a systematic process .
• Don ’ t be a “ jack of all trades and a master of none ” and rather develop deep area expertise in one or two areas and investment types .
• The rear view mirror does not make for a great investment tool . Think about the future and its mega-trends like mass urbanisation and green economy that will drive the Property Market for many years ahead .
No matter what area you will ultimately focus on , it is highly advisable for you to build local and practical knowledge about investing in property . Find out what tools you need , develop a support team around you and don ’ t let perfection get in the way of action . Mzansi , the right time to invest in property is now .
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SA Real Estate Investor Magazine APRIL 2021 31