Wishing you a happy and prosperous 2019! To help make that happen, I’ve drawn up a few New Year’s Resolutions that are ideal for property investors.
I’ll be realistic about my budget:
This is a difficult one to keep as it always seems like the ideal property to add to your portfolio is just out of reach! Being realistic about how much you can spend on buying your next property is essential, however, as the last thing you want is your financial security to suffer. Remember to factor in additional costs like maintenance and leave a comfortable margin in the event of interest rate increases.
I’ll keep on top of maintenance issues and add value:
Investing in your current portfolio can be just as rewarding and important as adding a new property. Take the time to fully evaluate your properties, get quotes for repairs and maintenance, and consider adding high-demand features (new kitchen, swimming pool, braai area, security etc.) that can increase your monthly rental income and the value of the property.
I’ll take insurance seriously:
Don’t neglect your insurance – make sure you understand exactly where you are covered and where you are not and ensure that your provider is offering a competitive rate. Not all insurance policies are the same, so ask about accidental damage, short-term rental coverage and arson. Lastly, make sure that you’re not underinsured.
I’ll check my rent rate against the market:
Currently, the SA property market is full of people looking for homes to rent. With such high demand, you need to make sure that you’re charging a fair price – and not under or over charging your tenants. Look at similar homes in your area or ask rental agents to evaluate your properties at least once a year. Make sure that you are allowed to raise the rent according to your rental agreement with the tenants.
I’ll track my portfolio performance:
The only way you’ll know if your portfolio is doing well or not is by thoroughly evaluating its performance. This is key to finding opportunities to increase its value, get rid of a poor-performing asset or find areas to improve your strategy.
Jason Scholtz is the CEO at Envision Investments and a leader in the property and strategic investments industry in South Africa. For more investor tips and an insider’s look into the South African market, be sure to get in touch, keep an eye on this blog or visit http://www.envisioninvestments.co.za/