Residential Guidebook Residential Guidebook 2013 | Page 10

GETTING STARTED Fix-and-flip A ‘fix-and-flip’ property investment strategy involves purchasing a run-down property and making an additional investment to renovate the property, which can then be sold at a substantially higher price. In this case, the investor’s evaluation of the property will be focused on the potential of the property, and less on the income potential or capital gains. with it, there is nothing stopping you from taking that first leap and buying your house. BEFORE YOU START: So now that you have a firm idea of where your ideal property is, how much it costs and what you want to do 8 Residential Handbook 2013 Location, location, location! 3 Hybrids However, property investments are rarely as black and white as the above categories imply. In many cases, the strategies employed are hybrids of the different approaches. For example, an investor may acquire a run-down property to renovate and then rent out. 1 2 Evaluating a property investment. 4 Property investment strategies. 5 Is buy-to-let best? 6 Buy-to-hold over long-term. 7 8 Speculation, buy high, sell high. 9 More than one category: hybrids. What’s your price? Should you fix-and-flip? www.reimag.co.za