Tips & Tricks To Finding Profitable Real Estate Investments
Making a profit from real estate takes commitment, knowledge and time. But once you know what to look for, the process becomes a whole lot easier.
When wanting to buy property for profit, you might be thinking “Where do I start?” “What kind of property am I looking at?” “Am I equipped with the right know-how to make a well-informed decision?”
And as these questions start to circulate in your mind, you might get to a point where you talk yourself out of the entire thing.
However, by spending a little time chatting with experts and researching what it takes to make money out of real estate, you will eventually get to a place where you feel comfortable in your ability as a buyer and what’s more, you will feel equipped enough to make financial decisions regarding real estate.
Here are some of our top tips to making a profit from real estate:
1. Find new developments or urban renewal areas
The first little trick is to find opportunities in up and coming areas that are soon to attract buyers and tenants. This way you might find a great deal on a property before prices start to increase as the interest in the area peaks too.
One of the best ways to find an area that holds potential for urban renewal is to look at neighbourhoods that are focusing on a number of urban-renewal projects, have construction going on or new businesses and restaurants popping up.
For example, Melville is a prime example of an area that in recent years has seen its fair share of urban renewal. The area went through a major upliftment as more and more young families are buying property there, trendy restaurants are opening (and doing really well) and more and more construction is taking place.
2. Have a look at areas that focus on lifestyle conveniences
The desirability of neighbourhoods in cities comes down to their ease of convenience for residents in the area. Aspects such as public transport (Gautrain stations), schools, parks, shopping centres and commercial business parks (easy drive to work) all play a role in the cost of the property.
As traffic congestion increases, more buyers are looking to areas that are close to the above-mentioned places.
Look for areas that have schools, restaurants, shopping centres and public transport facilities or easy access to the highways and business hubs.
3. Look at older properties and houses
It can be tricky to find a bargain, but with the right research and adequate time spent in viewing places, you might just find a diamond in the rough. Looks at older apartments and houses (older than 15 years), especially the ones that are in need of some maintenance to get them into a liveable shape.
Buying a property that needs renovations can often result in a great profit return or rental amount compared to the price you paid for it. As long as you are prepared to put in some work, it will be well worth it.
Moral of the story - don’t be afraid of fixer-uppers.
4. Find the right broker
Find the right property broker can mean the difference between a make or break situation. When you find someone who understands your needs as a buyer, your budget and your goals for the property, and more importantly, someone who is an expert in the real estate game, then this will ease the entire process tremendously.
Be sure to find someone who you feel you can trust and not someone who seems to be more interested in their commission than your budget.
5. Check out property auctions in the areas you are interested in
Auctions are not what they used to be. They are no longer just for properties where the seller is in desperate need of cash or for bank-owned properties.
More and more buyers are choosing to spend their money on the auction floor, purchasing real estate from commercial land to homes. The reason for the increasing popularity of auctions is because the auction process is one that is transparent, quick and effective for both buyers and sellers. (Check out this article on why it pays to buy on auction).
Chat with some auction experts to get you started and find out when the next auctions taking place are.
AuctionInc’s next Multi-Property auction: Diverse investment opportunities
Speaking of auctions, at AuctionInc we are hosting our next Multi-Property auction Tuesday the 19th of November at 12pm.
The auction will take place at our offices: Masingita House, 41, West Street, Houghton, Johannesburg, Gauteng
Our Multi-Property includes 8 commercial properties for auction. Each property is unique and offers a profitable outcome for buyers.
Have a look at the diverse range of properties here.
Some properties we think you may be particularly interested in include:
- Block of flats in Pretoria West - Well-positioned block of flats containing 36 apartments and 2 retail shop fronts.
- Halfway House - Large Corporate Industrial Property: Great location, large paved yard with storage and easy access to new N1 Allandale Offramp.
Our multi-property auction is not to be missed as buyers are given a real estate opportunity unlike any other.
Until next time,
The Auction Inc Team