There seems to be a perception that Rental Property Owners have some privileged inside information about where they should buy.
What type of Property to Buy?
Not where you want to live.
Often first time Property Investors, when they start looking for an Investment Property, they look for the type of place that they would like to live in. This happens especially when they already own their own Home.
This is a mistake. When you buy to live, you look at other criteria from the person that look to rent.
So put on your Rental Cap, and look from the point of view of a Tenant.
What will you look for?
- Not too expensive
- Close to Public Transport
- Close to Shops and Schools
- Near your place of Employment
The best Rental Properties are therefor:
2 Bedroom single bathroom unit in a Secure Complex
Adding another bedroom, or a second bathroom, or a single or double garage obviously add to attractiveness as a Rental Property, and will have a higher Rental Income. But the price you pay for the property will normally be a lot higher, while the Rental Income will not be proportionally higher.
So it’s better to go for 2 x R400 000 units giving you 2 x R3500 in Rental Income, rather than one R800 000 unit giving you R6 000 in Income.
Your risk of a unit standing empty for a while is also much lower with multiple smaller units.
I am not a Financial Advisor, Attorney, Accountant or any other Professional, and never WANT to be. I’d rather be FREE. I share MY experience and knowledge. I don’t give advice.
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