PROPERTY: This is the Year to Make Money in Property
Recent Kwazulu-Natal Business News
- Affordable Housing Development for Upmarket Durban Suburb
- Two Weeks to Go and Over 1400 Delegates AlreadyRegistered to Attend the SACSC's Congress in Durban
- Safmarine Welcomes First Of Three New WAFMAX Vessels in 2012
- Improving Market Sentiment in KZN Commercial Property
- Solid Demand for Office Space in Prime Locations in Durban and Umhlanga
There’s a saying in the real estate industry that the best time to really make money on property is when you buy it – not when you sell.
“What this means is that it is more profitable to buy cheaply than to try to sell at a higher price,” says Hano Jacobs, CEO of the Realty 1 International Property Group, “and conditions are right at the moment for shrewd investors to put this into practice.
“Apart from interest rates being at very low levels, property prices are still well off their boom-time peaks and there is a large number of even cheaper distressed properties for investors to consider.”
On the other hand, he says, the demand for rental property is high and increasing, and the other positives that are traditionally associated with residential property investment remain highly relevant.
“Property offers simple, hands-on control. You are not dependent on the uncertainties of financial markets - which have been beset recently by political unrest and the climatic changes. Nor are you reliant on the performance of company directors and managers for the success of your investment.
“In addition, you can screen and select your own tenants, you can decide how much or how little to spend on a property and the current tax system further enhances your investment in that your capital gains, that is the appreciation in the value of the property, will be taxed minimally at an effective 10%.”
To further enhance profit potential, says Jacobs, investors should be on the lookout now for rental properties with special attributes, such as energy-saving equipment, excellent security measures and sought-after locations.
They should also, he suggests, use as much cash as possible to ensure low bond repayments that will, in turn, enable them to charge very competitive rentals and to take a longer-term view of their investment no matter what happens to interest rates.”
Business News Sector Tags: Property|
Fax 2 Email
Study IT Online
Work from Home