Real Estate Investor Magazine South Africa June 2015 | Page 33

8 Affordability - Can you comfortably fund the initial shortfalls, as well as events such as a series of interest rate increases, vacancies or a defaulting tenant? 9 Control - How much control will you have over the property in terms of implementing changes that can increase the yield? Can you subdivide, extend the unit or renovate? 10 Bank valuation - Does the bank validate your decision to acquire the property by granting a mortgage bond? “The rental demand in the area in which the property in located is crucial.” In addition to considering these variables for each and every potential investment property, P3 Investment Group’s members use the P3 Property Wealth Manager, a state-of-the-art and custom-designed software programme, which allows them to ‘look into the future.’ After simply inputting the basic variables unique to each property (the price, the monthly rental income, the management costs and the rates and taxes, or levies) into the easy-to-use programme, these investors have instant access to four crucial indicators: the rental factor; the cash flow position at the outset; the breakeven date and total investment amount; as well as the Return On Investment (ROI) and Internal Rate of Return (IIR). These indicators provide a quick and accurate assessment of the quality of the investment opportunity. Download the demo version of the P3 Property Wealth Manager software free of charge from www.hope.co.za and try it for yourself. Selecting the right investment properties is fundamental to the success of your property investment business. If you choose the right property, you can be almost assured that you will enjoy good capital growth for many years, and that the property will rarely - if ever - be vacant, which will practically guarantee your property investment success. RESOURCES P3 Investment Group PROPSYS AND NICOR HAVE COMBINED THEIR KNOWLEDGE AND EXPERTISE TOGETHER TO CREATE THE BEST SOLUTION FOR ALL YOUR PROPERTY MANAGEMENT NEEDS Of�ce | 086 111 3406 Website | www.propsys.co.za Email | [email protected]