Investing in property is easier than you think with the right plan and financing. If you’re starting your property investment journey and don’t know where to begin, here are three factors to look at in terms of a residential property:
1) Ascertain your rental yield
Rental yield is the amount of money you make on an investment property by measuring the gap between your overall costs and the income you receive from renting your property. Understanding how property yield works gives you a better idea of the ongoing return you will earn on your investment. It can also be helpful when it comes time to review the rent on an investment property. When you know the rental yield of a property, you’re also better placed to understand if it is the right place for your investment goals, or if you could earn a higher rental yield with a different property or by investing in another suburb or town.
2)Location
Identical homes can increase or decrease in value due to location. Location affects not only the price but also the home’s desirability. Where a home is located is a key factor affecting its value — both now and in the future. Buyers are often more interested in the house or the floor plan, but from an investment standpoint, finding the best location should be a top priority.
Therefore, I strongly recommend one invests one’s hard-earned money only in the property with the best location. Look for properties near the city centre as that’s where most young professionals want to live or nearby amenities such as schools, malls etc. Because it will always be Location, Location and Location.
3)Buying structures (Full title or Sectional title)
Sectional titles (apartments, townhouses etc.) are less expensive than full titles (free-standing homes). However, it all depends on the location and specs of the property. Some tenants prefer a sectional title for security, especially if the property remains unoccupied for a prolonged period. And others prefer free-standing properties for more privacy. Also, consider additional costs such as corporate fees when investing in a sectional title.
The above three, in my opinion, are the top factors to consider when purchasing an investment property. Ascertaining the rental yield, location and type of property will ensure that you invest in a good property with a good ROI.
For enquiries Text, Call or email #yourhomegirl Justina Hamupembe
Cell: +264812726001
Email. justina@chili.com.na
