Real Estate Investor Magazine South Africa February 2016 | Page 31

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1

tips for Buy-to-Let

Success

Buy the type of property that is most
“lettable”.

Two-bedroom houses and flats are ever popular
and appeal to the widest range of potential tenants,
especially those who are finding it tough to get on to
the property ladder. Avoid large family homes, which
appeal to fewer potential tenants.

2

Don’t restrict yourself to your own
immediate area

3

Make sure the area has a healthy
market for tenants.

4

When making an offer on a property,
be patient – but ruthless.

5

Using a mortgage makes your
money work harder.

6

Watch out for add-ons that some
letting agencies try to get away
with.

Don’t restrict yourself to your own immediate
area but research others nearby, where the rental yields
may be markedly better.

investment club that will provide access to pre-screened
and pre-selected partners who are bound to minimum
service levels and are continuously monitored for
compliance.

Check credentials. Insist on proof
that the professional has the
required qualifications and that
the company is registered with
the relevant statutory body or
professional association.
Where the buck stops

While appointing experts to manage professionally
the various aspects of your property investment
business is the professional approach, bear in mind
that delegating or outsourcing responsibility is not
the same as abdicating responsibility. You, as the
property investment business owner, remain ultimately
responsible for the management and success of your
business. It remains your responsibility to manage each
one of these team members, to ensure they are fulfilling
their mandates as agreed and to address any problems
that may arise swiftly.
www.reimag.co.za

Convenience is a useful factor. Being within
walking distance of shops, railway stations, the town
centre and so on will ensure that your property is high
on the list of desirable places to live for tenants.

As an investment buyer, you are not in a chain
and can move at speed. This has value to the seller, so
be prepared to walk away if you are not getting the deal
you are after. A similar opportunity and more willing
vendor will never be far away

Whether to go interest-only or repayment is a
personal decision, but a rental income high enough to
cover a repayment mortgage is a good indicator that
you are getting things right. Take out a fixed rate if you
are uncomfortable about the chance of interest rates
rising, although you will pay a premium.

For example, let’s say one of your properties needs
maintenance. Some agencies will try to charge an
“admin fee” to organise it for you. Do not accept this.
You are already paying a monthly fee and this should
cover the organisation of maintenance and repairs.

RESOURCES
P3
FEBRUARY 2016 SA Real Estate Investor

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