Testing the Waters
You may have heard that property investing is a good route to financial freedom. But how do you get started? And what if you don’t like it?
Here are four few simple things you can do from the comfort of your couch to test the water and see if it’s something you’d like to take further.
1. Look for a homeloans calculator online. All of the major banks offer them for free. Plug in a few basic figures and voila, now you know what sort of bond amount you are likely to qualify for.
2. Look on www.property24.co.za for run down distressed houses in your local area. Look out for adverts with no pictures or adverts that say things like
"a fixer upper"
These are all signs that the seller is motivated to sell or that the property is distressed.
Here are some questions you should ask yourself as you browse:
What price range am I looking for?
How do I know the real value of the property?
How do I know if there is structural damage?
How much would a renovation cost?
What other hidden costs might I be missing?
3. Now don’t rush out and buy anything on the back of that armchair surfing! You would need to run the numbers on the properties to see if they make financial sense.
4. The next step would be to view the property. Never buy a house you haven’t seen! Go out and have a look at a few properties making a note of any damp or structural issues.
Now let’s be clear that property is not a get rich quick scheme, it requires hard work and dedication to be successful.
However, armed with the right skills and knowledge, property can be a powerful method to achieve your financial freedom goals!