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