Navigating Financial Challenges : Empowered Solutions for Investors in a pickle – Avoid these 3 common mistakes !
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Navigating Financial Challenges : Empowered Solutions for Investors in a pickle – Avoid these 3 common mistakes !
Carlo Mariani Founder THE PROPERTY COACH
“ I rental properties in
am a small buy-to-let investor who owns 3
Johannesburg and Pretoria . Unfortunately all 3 properties are cash flow negative and have been like that for the last 3 years since I bought them .
The vendors that sold me the various properties confirmed that I could get at least a 10 % rental return almost immediately and also said that the capital growth could be at least 6 % per annum . This is definitely not the case , in fact I am lucky to get even a 5 % return on my rentals and the property is probably has around a 4 % capital gain over 3 years . I attempted to sell the property but the general property sales market is struggling particularly in Johannesburg .
I am also dealing with tenant rent defaults . They are now putting a huge strain on my cashflow as my shortfalls are increasing and my funds are starting to run dry . I am going to be in a position where I am going to default on my bonds and even my levies . What advice can you give me to help me get out of this financial mess I got myself into going forward ?
The key to getting out of any financial mess is to never get into one , to start with . Once you are in a mess , don ’ t bury your head in the sand .
13 DEC 2023 / JAN 2024 Real Estate Investor Magazine