EDITORIAL VIEW
EDITORIAL VIEW
Invest within Real Estate in 2017 with confidence
We have kicked off the year with much excitement, having partnered with My Bond Fitness to launch our new first time homebuyers’ and property investors’ guide. This educational series will serve as an 8-step roadmap to your home ownership and property investment journey and will equip you with everything you need to get started as a first time buyer and investor.
You see, buying a property to get a firm foothold on the lucrative property ladder is probably the most important decision you will ever make in your life. It is irrelevant whether you are a first time homebuyer or starter investor getting back into the ever-evolving property market, it is important to get the right information, advice and guidance, and that you follow the right steps.
As a buyer and investor there are a number of macro and micro economic factors that you need to consider. We suggest that you focus more on the micro issues, which are controllable, versus macro factors, which are uncontrollable, to become a successful investor. Macro factors include ones such as whether interest rates will rise or drop, inflation rate fluctuations, housing supply and demand, performance of the rand versus other currencies, economic growth rate predictions, global uncertainty and the volatility of the political environment.
Micro factors include things like location of property, type of property, area rental returns, purchase price and potential capital return. Utility costs( such as rates, levies, water, insurance and electricity) and areas where there can be savings, such as on energy and water, are also micro factors.
Our macro prediction is that inflation will fall quite noticeably and, with all things being equal, hopefully the Reserve Bank will look to cut interest rates in the latter part of the year. More importantly, from a micro perspective, we think it is a great time to invest in real estate.
The other ingredients necessary for an investor are not only having the right information, the right mindset, and the ability to take action but also the right partners. REIM is also partnering with South African Property Investors Network for 2017 in rolling out monthly property network events in a city close to you. This is an ideal opportunity for you to educate yourself and meet new and seasoned investors. There is a saying that your net worth is equal to your network. So see you there.
Successful investing for 2017!
NEALE PETERSEN
FOUNDER & PUBLISHER
“ In a world that’ s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” MARK ZUCKERBERG
www. reimag. co. za FEBRUARY 2017 SA Real Estate Investor 3