You’ve decided to become a property investor. There will be many choices to make along the way. Do you want to invest in residential or commercial property, or both? What categories flats, houses or townhouses? Are you going to invest in just one specific suburb or province, high growth areas or just anywhere you can find a good buy? Are you only going to invest in your own country or are you going to have a global approach and hedge yourself against the Rand?
GET READY – LEARN THE ROPES - ACQUIRE KNOWLEDGE
ON YOUR MARKS – SELECT A TEAMTrue achievers will always acknowledge their team. Nobodyhas ever achieved anything of lasting value on their own. As you set out to select a team, be careful about your choice of advisors.
Ask yourself these questions: Does this person earn the bulk of their income from property investments? Or do they make most of their money selling advice? Get references from other people in property investment about service providers who are investors themselves. Clarify what you’ll be getting from each advisor. Ask about billing and payment. Interview more than one candidate and always check the references they give you.
Who should be on your team?
You are getting set to embark on the journey to financial freedom by building wealth through property investment. You should never be on this journey alone. Even the most experienced investors use knowledgeable advisors and rely on competent professional assistance. Here are some guidelines as to who should be on your real estate team.
Attorney: You will need conveyancing services and legal advice on buying in various legal entities such as in your own name, a company, a trust, or a closed corporation.
Accountant/Tax Specialist: Seek a specialist accountant who can offer accounting and management services, as well as tax advice.
Bookkeeper: As your portfolio grows, it becomes essential to hire the services of a part-time bookkeeper for proper administration of your properties.
Bond/Mortgage Originator: Identify a person or company who can source finance from the banks and lending institutions and manage your portfolio of properties.(see page x for getting a finance power negotiator)
Insurance broker: Get upfront advice on getting house cover on your loans to prevent extra costs on your mortgage.
Property Inspector: Use the services of a registered property inspector who can identify defects and problem areas when buying an existing property.
Letting Agent/Property Manager: As your property portfolio grows, it is better to hire the services of professionals who specialise in this area, than to try and do it in your spare time.
Handymen: Get a list of reliable plumbers, electricians, and maintenance experts who can give you service when you need it most.
GO! – MAKE YOUR FIRST INVESTMENT
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