Four top tips to get you started!

Ready to start climbing the property ladder? These top tips will guide you are you grow.

1. Get your financial situation in order

Take a long hard look at your financial situation. Pay off as much debt as possible to improve your credit record and give you a better shot at having your bond approved.

2. Consider who you are likely to be renting to.

Ensure the location matches your target market. For example, if you’re looking to target the millennial market, look for lock up and go micro-apartments in buildings that include gyms, restaurants and communal facilities like swimming pools within walking distance of restaurants and cafés

If you’re targeting families, look for houses close to high-quality schools, and other amenities such as well-kept public parks and hospitals.

• Speak to people in the neighbourhood to get a first-hand account of what it’s like to live there. You can find the locals at coffee shops or head out in the late afternoon when people are walking their dogs.

• Use websites such as property24.co.za or privateproperty.co.za to find out how many properties are available for rent. If there are a lot in your targeted area, it might mean that demand is low.

• Check the average rental rate in the area to get an idea of what you’ll be able to charge.

• Check the crime levels in the area. How safe are your tenants likely to feel living in the area?

• An estate agent is a vital resource for finding out which areas have the most potential for growth. Speak to at least three estate agents in the area to get a good feel of the area.

3. Inspect the property

Ensure the property is in good condition. If it is the first time you are buying a property, it might be easier to opt for a property that will not have repairs and maintenance eating into your budget. Once you understand the process, you can start looking for distressed properties that need to be renovated back to their former glory.

Focus on the location of the property - tools like Google Maps can be useful for understanding the location of the property in relation to nearby amenities, such as schools and hospitals etc.

4. Prepare for the responsibilities of being a landlord

As the landlord, keeping the property in good condition will be your responsibility, and you have to be prepared to handle problems on behalf of the tenant. Ideally you want a letting agent to be the buffer between you and the tenant but even so, you need to ensure you have saved enough cash to cover the inevitable maintenance bills heading your way!

Work on saving 10% of your monthly rental income towards repairs and maintenance.

Many people dive into property investment with dollar signs in their eyes, thinking of those who have become millionaires through successful investments. And while that is entirely possible, you’d be better off learning the ropes gradually. Remember the hare and the tortoise? Slow and steady wins the race, so focus first on acquiring a property that will grant you rental income higher than the cost of repaying the bond.

Once you’ve purchased your first property and made a successful investment out of it, you can focus on

acquiring a second, then a third, and so on; gradually building up your portfolio.