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of opportunities and avoid the rising costs - and risks - that inflation would otherwise bring if you were to only invest that same R20 000 later .
# 4 Define your strategy Another significant tip that all property investors should take cognisance of is to have a clearly defined strategy for going to market . This can be crafted by asking yourself some questions : What kind of property are you going to invest in ? Residential , retail , commercial ? What kind of tenants are you looking to cater to ? Students ? Young Professionals ? Families ?
Knowing the above will enable you to clarify what kind of product you intend to bring to market , whether these are bachelor units , one bedroom , or two-bedroom units , for example .
Additionally , you must define what kind of investment you are developing for , whether it is a long-term property that you let for the long-term , or a property that you renovate and immediately sell ? uMaStandi funds for the former but not the latter approach .
# 5 Know your market As with bringing any product to market , you must know something about the nature of supply and demand . For property investment , this means knowing who wants to live in the area you are planning to invest in , and what kind of rent they would be prepared to pay .
Then , identify existing suppliers . Who are your competitors in the area ? What types of units are they offering ? And how can you differentiate yourself ?
In property development , location is paramount . If you are aiming to develop in Soweto , for example , you need to narrow it down to which suburb and street , so that we can assist you in best catering to the residential trends in that particular node .
Along with these five tips , all property developers and entrepreneurs are best served by finding the right funding partner - and building up their network within the industry . Doing so can immeasurably smooth the property development endeavour and help one become a successful entrepreneur more easily .
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29 MARCH 2024 Real Estate Investor Magazine