property
Don’t fall into the trap of assuming that the Consumer Protection Act affords you blanket protection when it comes to buying property. In reality, this piece of legislation only comes into play if the seller regularly sells property or markets
Ensure that you view the property multiple times before putting in an offer. Be intentional about looking past the aesthetics to identify potential defects and faults, especially those that could be critical. Specifically, look out for damp or water seepage,
Some holiday resorts and/or complexes are very strict in terms of maintenance, upkeep and adhering to body corporate/resort specifications, so understand what you are signing up for before buying. Keep in mind that seaside homes in particular may require more
Despite what many investors believe, there is no correlation between investment fees and returns, so don’t fall into the trap of thinking that by paying more, you’re guaranteed higher rates of return.
Rental property markets fluctuate and as a property investor you need to be prepared for times when the rental market is saturated. In a saturated market, you may find it difficult to increase your rental in line with annual inflation
Buying property is expensive and, as a rule of thumb, if registering a bond to buy the property, it is wise to budget for transfer and associated costs of between 8% and 10% of the purchase price of the property.
Rental property owners are able to mitigate the risk of tenant vacancy by taking out rental insurance, although this type of cover is generally expensive. There are a few insurance companies that offer risk cover protection that cover three months’
Income protection is a form of long-term insurance which is designed to replace your income if an illness or disability renders you unable to earn your income either temporarily or permanently. While many consider this type of cover to be
In the absence of an emergency fund, you may be forced to access debt in order to pay for the unforeseeable expense you are faced with, keeping in mind that short-term debt is normally expensive. Ensure that you always have
Using debt to buy an appreciating asset such as a house or a business is sensible because your debt will reduce while the value of your asset rises over time.
