INVESTING
It doesn ’ t matter what the property market is doing and will be doing . Long gone are the days where the old motto “ don ’ t wait to buy , buy property and wait ” was great advice . The residential property market is a lot more selective nowadays and you absolutely must buy the right property , in the right area , at the right price , with the right financing , if you want to make money with property .
Thousands of aspiring and growing property investors would benefit from avoiding these expensive money-losing traps :
Pitfall # 1
Financial Leaks : How Overpaying Interest on Your Home Loan Can Erode Your Property Investment Returns This happens when you don ’ t negotiate your interest rate upon approval in principle by the lender , either because you are in a rush or because you don ’ t have competing offers from different banks that you can use to play one bank against the other . Applying to just one bank is a beginner ’ s mistake . Further you should regularly seek further interest rates concessions as you demonstrate a track record of paying in full , on time , all the time . Your interest rate is not meant to be the same for 20 or 30 years . Call your bank today .
Pitfall # 2
Maximizing Returns : The Importance of Negotiating Transactional Fees in Property Investment Transactional fees , including bond registration fees and conveyancing fees are exorbitant in South Africa . And they seem to be going up every year . Don ’ t ask “ can I get a discount ?”, rather ask “ what discount will I be granted ?”. The savings for just asking the question will be massive . I wish somebody told me this when I started buying properties some 20 years ago …
57 FEB 2024 Real Estate Investor Magazine