Real Estate Investor October 2020 October/November 2020 - Page 40

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 :
• Audible
• Youtube
• Udemy
• iBooks
• 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
INVESTOR STRATEGIES 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. S 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 34 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 only. 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 of tenants. 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 point. 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 over time. SOURCE SevenCapital SA Real Estate Investor Magazine OCTOBER/NOVEMBER 2020 35