Real Estate has produced many of the world's wealthy people, so there are plenty of reasons why property is a sound Investment.
For every dollar you invest, you need to calculate what your return on that dollar will be, 10% is considered an excellent return on your investment, but working on 6 to 8% may be more realistic.
Take note of the tips below before considering becoming a property tycoon.
Top prize for an investment, if your budget will allow it is a FACTORY, industrial premises is a low maintenance investment and although a factory does not necessarily have the best capital growth, rentals are likely to be more reliable.
If budget is a too small to afford to buy a factory, a FLAT in a good area with a decent home owners association is your next best option. A well appointed garden flat in Avondale for example, which would sell for approximately USD130 000 could be rented out at between $700 to $800 a month which would give you a good return on your relatively small investment.
At the moment, flats in good areas with a good home owners association are quite difficult to find for sale, so your next option would be to look for a TOWNHOUSE in a secure complex, you will have to be prepared to outlay a little more capital to buy a townhouse in a good area. The big plus is the security aspect and in the regard it is easy to get a tenant who will pay a higher rent in return for security.
A HOUSE in the right location with a borehole is your next option and if it has a cottage, this is an added bonus because you can maximize your investment by getting rental income for the house and cottage. Ensure that you vet your tenants very carefully and ask for proof of a good salary, this will help ensure that they will be able to keep up regular rental payments.
In our current difficult economic climate, some people have found that they can benefit from renting out the property they currently own and renting something cheaper for themselves, so that they can use the balance on living expenses.
Another consideration is to use your home to run your business from which saves you the rent on a house and a business property.
Lastly, many clients are now considering the Air B&B option of maximizing the value of their homes by offering a cottage or an en suite bedroom out for holiday rental. This has taken RSA by storm and it is not unusual for some homeowners to have give up their jobs and make a better income from exclusively running a B&B for short term lets or taking advantage of the Air B&B short term holiday stays.