Mistake # 1
Mistake # 2
COMMERCIAL
The adage of “ don ’ t wait to buy property , buy property and wait ” is a dangerous comfort zone for aspiring and growing property investors in the current residential property market in South Africa .
Recent and expected low levels of economic growth are undoubtedly a significant headwind to rapidly rising prices and rental growth . It is really a matter of “ when the going gets tough , the tough gets going ”; buy the wrong property in the wrong area at the wrong price and you might find yourself watching paint dry for a very long time .
Buy the right property , in the right area , at the right price , with the right financing . That makes you a Property Hacker .
So , what do Property Hackers do and don ’ t do ? One of the key skills that you need to train is to stay focused . Too many investors approaching me for guidance and support suffer from various degrees of “ property schizophrenia ”, meaning they are chasing too many strategies in too many areas ; the current market does not tolerate a superficial approach . Being unfocused is
a sure recipe for disappointing long-term results as much as it might give you a short-term sense of achievement .
Four dangerous mistakes to avoid .
Mistake # 1
Investing in your “ back-yard ” simply because you know the area well and you are comfortable with it .
There are numerous areas in South Africa that will perform poorly in the upcoming years based on a volatile mix of climate change , decarbonisation of the economy , poor service delivery , social unrest , urbanisation and internal migration patterns . The place where you live and / or work could be a great place to invest or a poor one . Do your homework well .
Mistake # 2
Over-estimating the importance of short-term noise
Interest rates fluctuations - and under-estimating the long-
111 APRIL / MAY 2023 SA Real Estate Investor Magazine