In short the article forecast that property investment expected growth rate will stay between 3.5% and 5% and rental statistics indicating net yields on residential property investments between 5% and 7% p.a.
The question asked by property investors is how do you combat and secure property investments in 2019 that still generates excellent returns?
A few keys which Property Assist is currently utilizing which continue to ensure solid returns:
- - Ensure your finances and investment strategy is in order prior to starting to invest.
- - Purchase Properties from property owners that are in distress but do not misuse the current owner’s misfortune to enrich only yourselves (Make it a win-win transaction for all, including the current owner).
- - Make a difference and impact in others lives whilst making good low risk returns.
- - Secure your returns and all terms upfront when signing the agreements.
- - Ensure that all participating role players also benefit during the transaction.
- - Utilize existing and established professionals with proper track records.
- - Ensure that your transaction is facilitated by experts in the distress property market.
- - Make sure payment of fees for services and knowledge is based on performance and results.
- - Experienced assistance with due diligence on the seller and property is very important.
- - Before paying deposits and amounts to any third parties ensure that the risks are mitigated, and suspensive conditions met.
- - Most important of all is the assessment of the value of the property, seeing that it is the one factor that will determines the return what you will make in the end. Do not accept that every estate agent knows the market in the specific area – they need to be area specialists.
- - Property inspection and structural due diligence by specialist is also very important to avoid pit falls and unexpected losses.
- - Aligning the interest of all parties to achieve the final outcome as envisaged.
- - Do not let greed or fear drive you during your investment process.
Practicing and including these pointers in your future property investments will ensure that you will minimize risk, avoid pitfalls and will enable you to secure predetermined returns (15% p.a. and more) which organisations like Property Assist have been able to consistently achieve over the last 5 years. Thus irrespective of the growth rates which was and are expected to be lower than 5% and rental returns that was and expected to be 5% to 7% in 2019 you can, with the right team and strategy, ensure solid returns whilst helping those in need.
Property has always been one of the best performing asset classes and if approached correctly and with experienced parties you will make excellent returns in the coming year. The team you chose to work with need to have the character and value system that ensures that when things go wrong (because at some point it may) that they will not disappear, but stand with you through the process to recover and turn it into a good result.
There was a very wise man that once said what you sow is what you will reap and therefor make sure the way you approach property investment is the same.
Get in touch with us today and we can assist you on your journey