Real Estate Investor Magazine South Africa May 2016 | Page 66

LESSONS

Realise your Dream of Investing in Property
The Seven Guidelines

BY PIERRE VAN DEN BERG

I

t must be a daunting prospect for a young
person nowadays to start investing in property.
Nevertheless, one should not limit yourself to
alternative investments if you cannot immediately
afford a deposit on a property, or if you do not qualify
for a home loan. There are important “building blocks”
to be followed in making this prospect achievable.

5

Most importantly, you HAVE TO know how to
“work” with money. No matter how few income
streams you have or how little you earn, efficient
budgeting is critical, targeted towards saving money
each month – the more the better. You can only create
investment options if you are successful in saving
money.

6

Getting into the habit of efficient budgeting
will also assist in building a positive credit score
and increase your chances of qualifying for a
home loan. Working hard on keeping a favourable
credit score is a small price to pay for the future
empowerment and potential “rewards” in acquiring a
home loan.

7

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3

Try your utmost to create more income streams for
yourself. Besides increasing your monthly income,
this is a savvy principle to follow as your current
job and salary is nothing more than a false security
which could disappear any day. Be creative, make
better use of available time, and look for opportunities
to exercise your passions and skills.

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Look out for cheap or affordable rental
accommodation, and first put the idea of your
own home on the back burner. Share a place with

MAY 2016 SA Real Estate Investor

others, or stick it out with your parents for another
year or longer. Minimize your accommodation
expense and live within your means.
Even if property is no more than a dream at this
stage, make it your hobby and passion. Read as
many books you can on property investment and
sign up for digital magazines. Utilise the internet
to network, to become part of property forums and
chat groups, and to stay informed with the property
“scene”. Educate yourself!

If you are determined to start investing in property
but fall short financially, a viable alternative to
acquire that first property might be to purchase in
partnership. Share your passion with trustworthy and
like-minded friends, and evaluate this option. Make
sure a legal contract is drawn up to cover all possible
requirements and conditions of the involved partners.
Start small. This will make your goal much more
achievable, it could reduce your risk, enlarge your
potential tenant market, etc. Forget about higher
priced properties at first. Do not make the mistake
by thinking that you need at least a million Rand
to enter the property market. Do not feel bound to
rather invest your available money in other investment
products than property, only because your vision is
limited to the large or expensive picture.

RESOURCES
ThanksToProperty.com
www.reimag.co.za