It was brought to our attention that there are even more predictions about residential real estate going down for another 2 years or more.

Can this be true?

As with any prediction, it can be true as much as it can be wrong. But, in essence for real estate / property investors that have purchased correctly – this does not matter at all. Never did and probably never will.

Sure any investor can buy one or two wrong properties in their portfolio that don’t make much money, but one “sour lemon” has never been the “end of days” for any real estate investor.

Unless, of course there is the “but” again, and the “unless” again…. those are the only properties that the investor holds. Then this could be a big problem.

So, why in essence it doesn’t matter where the market goes?

As a property investor you will have to face various activities that sometimes can be challenging.

First you will have to find the deal that suits your needs and financial situation. Personal preference and circumstances are of high importance when buying an investment property. As we say on Property Investor Network, you should make your money when you buy, not when you sell. This is very important. The deal must be good for you at the time of purchase.

As we stress, over and over again, property investing is about calculating the numbers, not about the tiles, or the nice windows. Not even about the neighborhood. Though I am sure a lot of investors and particularity "emotional property investors" would love to argue the neighborhood subject.

Because of this, it stands to reason that one should buy as cheap as possible. Many investors ask what is cheap enough? Is R300,000 okay? Or maybe R500,000 or maybe one should go for the lowest prices in the worst places of R100,000.

Some property traders and investors choose to buy property for the purpose of renovating and then selling.

This strategy can be used for both "selling for profits" and "renting for profits". In other words, there are 2 systems to renovating a property for profits.

Renovating properties is great way to generate income and some do this for a living. This type of deal is really a specific strategy and can be slightly speculative in nature if one is lacking the correct planning and fundamental considerations. In other words, you can "lose your shirt" doing this is, if you don’t know what you are doing.

Lets then look at the fundamentals and considerations that make property investors and renovators successful in this strategy.

In a joint effort to give more information to property investors around South Africa, Ardent the pioneering, free property investing community website in South Africa since 2004 and Property Investor Network have decided to come together to help property investors grow their knowledge.

Both Ardent and Property Investor Network had the same vision from the start, which was based on providing a free flow of property information, exchange of ideas and a community for investors to help each other while having fun and communicating freely.

This merger of the sites will provide both communities with a bigger and better place for all to benefit. “In line with my vision of free flow of information on Ardent, this merger just made sense, we are two sites doing the same thing on the community side, getting together the community just grows stronger for the benefit of all”, says John Becket founder of Ardent.

Though as we know information is power, more often than not, information often comes  at a very high price that is not justified or necessary. Property Investor Network has built its’ community from the pure will to help investors get started and have a place to freely ask questions and discuss issues, though it will never replace professional advise, nor should it, it does help investors get started and discuss ideas.

“Tenants can expect to pay double deposits and higher rent as landlords safeguard their investments and offset higher mortgage repayments.” - FNB Home Loans property strategist John Loos.

During the recent property boom, divergence between rental prices and monthly bond instalments was dramatic. Rental prices remained low and seemed never to catch-up with the growing property prices. Subsidization of bond repayments was the norm for buy to let property investors.

Many think it takes to be Donald Trump or Robert Kiyosaki to become successful in real estate investing. That is just not true.

Granted they are some of the most famous investors, but don’t think that others are not successful. Some are widely successful, they are just not famous…. and mind you, not everyone seeks fame after success.

Here is what it takes for the beginning:

In my last article I discussed where to find buy to let cash flow positive properties, it stands to reason that now you want to know how to go about finding them. So, lets get right to it.

As I mentioned in the first article, it takes great effort, but it is by no means rocket science. If you are serious and committed to putting in some effort, which must be consistent, you are likely to find many cash flow positive properties. You will also find, that buy to let properties in the residential market will get even easier to find with every increase in interest rates. Take careful consideration of this, because if such properties where too easy to find, property investor would be doing it and we wouldn’t need to discuss it at all.

To continue from the first article, there is no particular province or area for such properties, and hence finding strategies can be applied anywhere.

It's at an interesting time in the market. The market has gone from Peach to all Strawberry's and Cream for property investors buying investment properties. The effects of the interest rate hikes, NCA, more interest rate hikes and the looming new rates and taxes bill, due to kick in next year, are coming together in close succession, creating a boom time for property investors with capital to spare. Now it is the time to buy investment properties.

Good investors have been holding something back during the boom years, circling the market in search of the weak and unsuspecting. As the dust of the race to buy clears, the carnage of the market is starting to show and finally investors can act on their counter cyclical instincts and come down to feast at the vulture restaurant.

The country is starting to face the repercussions of the new credit act. Lending is getting tighter and  everyone's affordability has been dealt a double blow with increased interest rates. Many people are not so  happy about the new set of circumstances they find themselves in. For many property investors, months of long strategic planning seems to have been for nothing. As most investors go back to the drawing board, we ask, “Can one profit from such events?”

With the increase of buy to let properties and the hype in the property investing market, often an investment property is confused with a simple property trade deal or speculation.

Purchasing a property that is not a primary dwelling or holiday home, can be generalized in 3 main categories:

1. Resale – For the purpose of selling for profit (often called a “flip”)
2. Fix / Renovate - For the purpose of renovating and reselling for profit (often called a property trade).
3. Letting – For the purpose of letting to a tenant and generating income for the long term (often called buy to let property).

By Dana Pretorius – Member of Property Investor Network

With the new increases in interest rates and the national credit control act, property investors must start to look at how to make more money from their current investment properties. Optimising the portfolio has never been more important than in the current economic climate. Property investments after all are supposed to make you money.

Many property investors will agree that cash flow is the secret to successful investing. Whether it is a property or business, the key to success is to have a strong grip on your cash flow situation. Interest rate increases, like the ones we have recently experienced, can significantly eat into the cash flow. Many people think that one needs to amass great sums of money to build wealth, but building a strong inflow of cash can also bring about financial freedom without having piles of cash.