As an Investor you would understand that properties can make large gains in equity or lose large amounts in value. To buy and hold your investment property you need to do thorough feasibility studies to ensure this works as a positive cash flow strategy for you, not a negative one. It is very important before investing into any property deal, that you educate yourself about the industry.
It is very important to understand that if one spends money on a property it should be done with the knowledge of getting a return. Emotional decisions are made by homeowners every day which results in over capitalising and losing money in the process. We can assist in running a Comparative Market Analysis (C.M.A) and a Maximise your Property Assessment (M.P.A) with Feasibility studies on each set of circumstances to determine what the Return on Investment (R.O.I) would be.
Remember the two rules of investing set by none other than the Oracle of Omaha himself
– Warren Buffett…
Rule #1: Never lose any money and Rule #2: Never forget rule #1.
You need to:-
1. Understand formulas to determine yields.
2. Know what the macro and micro climates in the locations you choose to invest into are doing. A
3. Run accurate feasibility studies to determine all the possible outcomes before you invest your money.
4. Have several exit strategies before entering into a contract.
All the hidden costs of the transaction need to be taken into account. We work with Investors and set out to achieve a 15-20% return on investment (R.O.I), as the margin on which we base our feasibility studies. If we cannot reach that % then we would move on to find another deal where all parties can have a win-win outcome.
To determine all the hidden costs and ensure there is an acceptable return on investment…