This is a continuation of important questions novice investors ask at IGrow. We hope this 2 part series of blog posts leaves you excited and more equipped to start your property investment journey. Property investment for beginners doesn’t have to be intimidating when you know more about the process that will ensure your success.
This 2 part blog post series aims to make you feel more comfortable and answer those niggly questions you have on your mind. Refer back to Part 1 for the first bunch of questions that usually spring to mind as a beginner investor.
Instalment (Part) 2 of common investor questions is below:
- Which type of property is best for beginners?
- What are the risks associated with property investment for beginners in South Africa?
- How does property investing weigh up in relation to other types of investments?
- How can I start my investment journey with IGrow?
1. Which type of property is best for beginners?
Beginner investors at IGrow often ask the question “Which is the best investment property for beginners?”
The answer is:
“It’s best to align your property purchase with your goals.”
In general:
- Apartments in high-growth areas are a good choice as they are affordable, in high-demand and they require low maintenance.
- New security development units often offer benefits like low transfer duty costs, or at times, no transfer duty at all at IGrow, and tenant security. IGrow’s Rental Managers keep track of tenant needs, and they also keep on top of rental payments.
- Properties in secure estates are appealing to tenants who place value on security. There is a high demand for security complex apartments by tenants right across South Africa.
The IGrow team carefully researches and selects developments that offer excellent ROI for our investors.
2. What are the risks associated with property investment for beginners in South Africa?
Any investment is never 100% risk-free.
Beginner property investors should be conscious of potential obstacles:
- Tenant vacancies: If your unit is vacant, you still need to cover your home loan repayments. With IGrow’s property management team on board, vacancies are kept at an all-time low.
- Interest rate increases: Increasing interest rates can impact your affordability level, although luckily rental prices typically increase yearly, as well.
- Tenants defaulting on rental payments: It’s critical to work hand-in-hand with expert Rental Managers who vet your tenants and follow up on payments or defaults accordingly.
The IGrow Rentals team minimises the above risks by offering expert property rental management services. Our team makes sure your property is occupied and well-managed, and maintained. They also ensure that your tenants are happy and attended to. This is in terms of maintenance needs that need to be met, or attending to complaints they raise.
3. How does property investing weigh up in relation to other types of investments?
Property investment as a beginner looking for financial growth is a known and proven way to accumulate wealth. Stock markets are sometimes volatile, while property rental income is a given and appreciates with time.
Property investments also offer a solid rental income for your retirement. This offers better access to funds and more security than the more traditional retirement plan or annuity. Our blog post centering around retirement property investment highlights the perks of using property investments to secure your financial safety into your late retirement years.
Property investment stands out as a good investment avenue, because:
- It’s a tangible, physical asset.
- It offers a stable monthly rental income and capital growth, and appreciation.
- It can be financed through a 100% bank loan.
- It doesn’t get negatively affected by inflation.
For novice investors, property investments as an investment choice offer a secure, tried-and-tested way to build your wealth. You will be able to avoid the volatility of potentially unstable stock markets. Or, even, market fluctuations in investing in something like cryptocurrency. This can prove a somewhat turbulent investment choice.
4. How can I start my investment journey with IGrow?
Getting started is easy. At IGrow, we assist you throughout your property investment journey.
The steps you can follow as a newbie investor at IGrow are as follows:
- Book a free consultation with our property investment strategists.
- Our property investment strategists will conduct a financial assessment and affordability check of your finances.
- Look at the options we have of vetted, high-demand investment properties.
- Apply for a 100% or partial home loan with the help of IGrow Home Loans. Enjoy a hassle-free property investment road.
- Our rental management team handles your tenant placement and tenant management, as well as any property maintenance.
With this proven approach at IGrow, beginner investors can start building a budding portfolio with ease and confidence.
Key Takeaways
If you have read Part 1 and now Part 2, of Property Investment for Beginners: Top Questions Investors Ask (and IGrow’s Answers), we are sure we have answered some questions that may have already popped up for you.
If you read through these commonly asked questions, you will feel:
- More equipped to start investing in property.
- You won’t have to ask too many questions, as we have already covered the core questions our beginner investors ask.
- Our team will do a financial assessment for you to understand your affordability profile. Then you will know which house you can realistically afford.
- Our property investment strategists will advise you on property type and key suburbs worth investing in.
- You will understand the financing and home loan process more thoroughly.
- You will feel more secure knowing that IGrow Home Loans handles the entire home loan application process on your behalf, securing you the best deal possible.
- You will have tenant management taken care of by IGrow’s Rental Managers. This is so that you can enjoy a profitable investment property without the stress of tenant issues taking up your time.
- You will have the IGrow team’s support throughout your entire property investment journey.
Final Thoughts
Having read this 2 Part blog series, we hope you feel more ready to start stepping into your property investment journey. Property investment for beginners in South Africa doesn’t seem all that scary now!
We hope you feel well-equipped with the questions we answer above. Now you can to set the ball rolling and start investing with IGrow.
Book a property investment strategist consultation now, and let’s start building your property portfolio today!
