Real Estate Investor Magazine South Africa April 2015 | Page 35
some measure of protection against an emotional
decision to buy a property which may not be what it
seems. Similarly, a property cannot be sold on a whim,
and obtaining valuations and offers prior to a sale
provides the investor with some indication of whether
selling is indeed the right option, or whether letting,
subdividing, renovating or improving the property may
yield a better return.
By using proven step-by-step systems, such as P3
Investment Systems, smart property investors ensure
they acquire the right property, place the right tenant
and make the right decisions, every time.
“A step-by-step system
protects investors from
acting irrationally.”
A step-by-step system protects investors from acting
irrationally, even when they are excited by the returns
property investment yields and the many opportunities
that are made available. It requires an investor to
take the time and make the effort to gain a thorough
understanding of the risks and rewards to rigorously
implement proven risk management techniques.
Smart property investors do not rush out and buy
just any property. Instead, they do a thorough due
diligence check on each property and use customdesigned software, such as the P3 Wealth Manager, to
ensure the numbers add up.
This entails making provision for maintenance costs,
interest rate increases and vacancies in their cash flow
projections, building and maintaining a buffer fund or
a ‘war chest’ to cover any unforeseen eventualities, and
taking out rental insurance to cover any rental defaults.
Buy-to-let property investment, when using a
proven step-by-step system backed up by customdesigned software, provides built-in protection against
investor risk. It deters emotional decision-making by
promoting caution and prudence, allowing investors to
build up, steadily and responsibly, a small but highly
profitable portfolio of quality properties.
RESOURCES
P3 Investment Group
www.reimag.co.za