its ability to help with property and investment research , discussed more in detail below .
Proptech tools to assist with investment research include :
• Ooba Home Loan ’ s online tools and calculators . South Africa ’ s largest mortgage originator has an app that provides extremely useful calculators to better understand the costs associated with buying a property .
• TPN Credit Bureau ’ s Online Portal . TPN ’ data includes property valuation information as well as rental data and demographics which enable you to make informed decisions based on data .
• Lightstone Property Solutions . This is a great tool for providing property valuation data , area sales history and enables you to obtain contact details for the property owner . They include both property toolkits and once-off reports .
• Property Inspect . Also known for having the most advanced property inspection software on the market , this is a great tool for fulfilling your obligations in terms of the Rental Housing Act on joint inspections at the commencement and conclusion of a lease agreement . Online documented and backed up inspections with photos and accurate descriptions provides a landlord with the opportunity to prove any damage claims accurately should the need arise .
Going hand-in-hand with the research capability of proptech , business tech tools include :
• InvestmentBox . Has a great calculator to assist in running the numbers on your investment property giving an indication on the Return on Investment whether you are looking to buy and sell the property for profit or buy and hold for investment purposes .
• BidX1 . I believe this tool to be the future of real estate transactions . Open market , transparent and electronic , everything the property purchasing process should be about .
• Zoho . com . I particularly like using Zoho Sign for electronic signatures of agreements .
Finally , there are a wealth of educational resources available online , many of which are available for free . I personally recommend using :
• EPiC South Africa
• The Unsh * t Show ( Podcast )
Start off with a strong foundation
Your ability to access educational content without spending thousands of Rands on seminars and courses has never been easier . Although there is value in spending money on specialised , focused , expert led courses , there is plenty of content , education and information available online at extremely affordable levels to get you started .
As an expert led property investment education brand , EPiC offers :
• Free property investment basics and eBooks
• 6 module property investment training
• Free property development eBook
Join the network today !
SOURCES Only Realty , EPiC South Africa
SA Real Estate Investor Magazine OCTOBER / NOVEMBER 2020 15
Find your niche
Build your wealth through property
Tangible, relatively stable and easy to understand, bricks
and mortar has long been one of the most popular assets for
investing to both protect and build your wealth. However, far
from being ‘one size fits all’, there are many facets to property
investment. And, finding the right type(s) to suit both your
circumstances and your finances can mean the difference
between poor and very rewarding returns, not just financially.
easoned property investor and director at leading UK
property developer SevenCapital, Andy Foote says if
you want to succeed in business, you need focus: find
something you’re good at and do it well.
“Property investment can be exactly the same. It’s true
you can do well from holding a variety of different types
of investment as long as you know what you’re doing with
them. However, I often find if you narrow down to the one
or two investment models that you like, understand and
how to manage, then this can pay dividends in the long run,
without causing you extra worry or hassle,” He says.
He says, If you’re relatively new to investing, knowing how
to find your niche might be your first port of call. However,
it’s actually pretty simple and it all starts with where your
priorities lie, what level of time and effort are you willing
to put into the property during and after investing? What
type of returns are you looking for, are they cashflow, capital
growth or even both? Finally, ask yourself, what level of
return are you looking for?
“I don’t ask the question of ‘how long do you want to keep
your investment’ because with property, the longer you
hold, generally the more money you’re going to make over
time and if you do come to eventually sell,” He adds.
What type of investor are you?
When you’ve answered that, you can easily identify what
type of investor you want to be and then you can knuckle
down into doing the research on the best properties and
areas to suit you and your budget:
• The hassle-free, hands-off investor
If you want to invest and have a tenant move in straight
away or you’re specifically looking for a steady passive flow
of income from rental returns, then a new build or ready-
made property, managed by an agent, is probably for you.
Many investors fall into this category, it means little extra
expenditure required on the property once you’ve bought
it, bar general maintenance, and you can entrust an agent
to keep a check on the condition of the property and the
rental payments coming in while ensuring there is a good
tenant in occupation. Extra expenditure will be required in
the form of paying for the agent’s services, but what you pay
in cash for a service, you gain in time to concentrate on your
other ventures. This is generally considered a good way of
investing for the more risk averse investor.
• The Buy, Refurbish, Refinance (BRR) investor
Not so much actual cranes here but a similar sentiment
in terms of putting in some work. For investors who want
to pay less and are willing to get their hands a little dirty in
order to increase the value of their property quicker, then
the BRR route is an option: buy an un-modernised property,
refurbish it, refinance it – not necessarily to achieve a better
OCTOBER/NOVEMBER 2020 SA Real Estate Investor Magazine
rate, but to get cash, or equity, out of the property.
• The cashflow is king investor
If a higher cashflow is the main goal and you can cope
with a higher level of effort, then HMOs (houses in multiple
occupation) might be your niche. The benefits of being able
to rent to a higher number of people in a shared house
often includes being able to achieve higher rents and yields
collectively, however this can be a very transient market,
so it’s not for the investor who likes to sit back and steadily
collect a passive income.
• The capital investor
You might be the type of investor whose main priority is
earning capital, not necessarily through BRR, and for whom
rental income is a plus, whether that’s through regular rental
returns or as a holiday let. If you’re a cash investor, you may
fall into this category, as well as perhaps BRR or hands-free,
with the main objective being to safeguard and grow your
wealth over time.
The need to identify
Identifying which type you are from the above is the
first step in finding your niche and it might be that this is
enough. However, some investors find it easier to find
success by really narrowing down their niche once they’ve
found a formula that works.
Investing in a particular area or set of postcodes that you
know are in high demand and are likely to offer longevity for
the rental market is one way to drill down. You may target
a particular type of tenant and get to know exactly what
their weak spots are when it comes to attracting them, for
example targeting young professionals, families or students
Alternatively, you might prefer to invest in a particular
type of property like newly built apartments and older
terraced properties, for example, attract very different types
By finding your niche, you’re making sure you really know
your market inside out which can allow you to gain an upper
hand against nearby competition. The important things
to remember are “be clear of your priorities and do your
research properly” so you are confident you are investing
in the right property, in the right location, at the right price
Unless you’re very good at flipping property, which in the
current market is a much riskier strategy, having a long-term
focus that includes being prepared to weather the storm if
and when the market takes a temporary downturn is also
key to ensuring your property delivers the returns you want
SA Real Estate Investor Magazine OCTOBER/NOVEMBER 2020