INSPIRATION
holiday . Once they are in the rent trap , it becomes tough to own their home .’
Q : So , what sector or band should new investors look at ? Pieter : ‘ There is never a single correct answer . In 2008 everyone thought retirement or storage was the way to go . In today ' s economy , in my view , the market above R3,5-million is more robust . Others would say student rentals . There ’ s never a right or a wrong answer – sometimes you ’ re lucky , and other times you must sit out the bad times .’
Q : Is gearing the magic wand some say it is ? Pieter : ‘ Gearing can be suitable while interest rates are low , but as we ’ ve seen , low rates can ’ t be guaranteed . So yes , you can make money on the bank ’ s money , and all can be good while we are at 7 or 8 % levels , but suddenly , prime is at 10.75 % … I don ’ t think that ’ s favourable for gearing . ‘
‘ I view deals differently today compared to 20 , 10 , and even five years ago . I used to be very keen on taking a chance , but my children are 1 , 9 , and 12 this year … Everything in life comes with some risk . I prefer to have manageable risks should anything go wrong .’
Q : Where would you advise a first-time investor to look for property ? Pieter : ‘ The key is not to be emotional . If you buy with emotion , then you will lose out on good deals . Keep an eye on areas close to public transport , in the low to medium price bracket , where properties attract a variety of tenants , from students to young professionals . Generally , yields are better there . ‘
Q : What is your advice to anyone trying to decide on a career ? Pieter : ‘ Ultimately , you must do what you enjoy and have fun . If your work is no longer fun , take a break and reconsider why you are doing it .’
Q : Finally : what do you advise investors to look for in a property agent ? Pieter : I have built a stellar reputation and a very large portfolio of properties supported by Hendrik , Johannes and Pieter van den Berg of Just Property Prosper . Our professional relationship has expanded over time to an enriching personal one ,
151 APRIL / MAY 2023 SA Real Estate Investor Magazine