The Sunday News
Real Estate Issues with Jonathan Thompson
LAST week we discussed different ways that you might invest in property.
The ways that we looked at were;
1. Long-term Investment – This is where you buy a property when the property market is low, and then sell later when the market is high.
2. Property as an income generator – This is when you buy a property to generate income through the collection of rentals.
3. Flipping a Property – This is the buying of a run-down property, that you improve through renovations, and then sell, at a profit.
All of these types of property investments may be used, sometimes together.
These investments have the potential to create new wealth, or cause crushing debt.
How does an investor ensure that they will be successful in their property endeavours?
Here are a few tips;
1. Build relationships with your local Registered Real Estate agent.
They often have the knowledge and experience to assist you in your projects.
It would be good to send business back to them, to help build this connection.
2. The main goal should be to make a safe investment.
The goal is not to buy something that suits you or your tastes.
Many investors turn down good opportunities because that property is not one that they like.
Maybe it is not in an area that they prefer, or the size is wrong, or the local amenities are lacking.
At the end of the day, the goal is to make a wise investment.
Many successful investors will say that they have done well with projects that they did not actually like.
Do not let your personal desires get in the way of a potential profit.
3. There are different ways to create a profitable investment plan.
It is good to realize that there can be many ways to have a thriving venture. Just because the way you did it this time worked, it doesn’t mean that it will work the same way next time.
Be open to various strategies. Property markets shift and change, so it may be advantageous to adjust.
4. You may need to start small. Buy a flat or a high density property.
Buy a stand on terms, and do one stage at a time.
Perhaps you can join or start a “property group”, where members put a certain amount of money into a fund. Once the fund grows to a good size, the money can be used to buy a property.
We have seen a number of these group work successfully.
Property ownership has been proven to create wealth for you and your family. But, as always, study, plan, and think before investing.
Investments are wonderful when they work, but can be devastating when they fail. Always invest safely.
Jonathan Thompson is a Registered Real Estate Agent who works in Bulawayo.
He has nine years of experience in Real Estate in the USA, and another 11 years’ experience in Bulawayo.
He is the founder and the Managing Director of Thompson Properties (Pvt) Ltd.
