How to recognise property investment opportunities in 2023

    If a property boasts ample space for your family, a big garden and a sparkling pool, it’s guaranteed to be a great choice for your first property investment, right? Surprising as it may seem, the answer to this question is … not necessarily. 

    With their decades of experience in all things real estate, Seeff takes a look at what’s involved with buying vacant land.

    How do you identify property investment opportunities?

    The best way to find properties that will give you a good return on your investment is to work with a property practitioner in the area you’re interested in buying in. As industry professionals, qualified property practitioners will be among the first to know if demand for a particular area is picking up.

    They are also on the cutting edge of knowledge of real estate prices and are well aware of the types of properties that will attract top-quality tenants.

    What are the three most important factors in real estate?

    When you’re looking for your next real estate investment, never forget the old adage: location, location, location. This is always the most important factor when making a real estate decision. Over and above chatting to a property practitioner, great ways to learn about an area that you may not be familiar with is to find local news articles online, join social media groups pertaining to the area and, if possible, take a few drives around the area at different times of day.

    The second important factor in every real estate decision is price evaluation. While you may fall in love with a property, it’s critical that you do your due diligence and ensure that you aren’t paying too much for your dream home or investment.

    Thirdly, you need to consider your own financial status and readiness to invest. There are an array of costs over and above the actual cost of the property that you’ll need to cover when you’re buying real estate.

    How do you tell if a particular suburb is a good investment?

    Here’s one of the best insiders’ tips for finding suburbs that will be the next great investment: look adjacent to suburbs that are currently considered hot investments. While properties may be more affordable in these areas now, the nearby demand is likely to spill over into neighbouring areas, meaning that you could get a significant return on your investment after a few years.

    Another way to look for areas likely to become lucrative investments is to pay attention to where new schools and shopping centres are being built. Such commodities are always sought-after by prospective homeowners and tenants — especially families. Some of the best property types to invest in are two-bedroom apartments or three-bedroom homes. Alternatively, you can also choose to invest in vacant land.

    A third telling factor is rental prices in a given area — and monitoring these over time can give you a clear indication of whether or not a suburb is a good investment. If rental prices are climbing, then the area is a good investment.

    Another tip for property investors to bear in mind in the aftermath of the pandemic is the growing popularity of suburbs and towns outside of urban centres. With many people no longer needing to report to an office, it’s worth looking for property investments outside the city limits.

    Three quick tips for finding a great real estate investment:

    1. Analyse the historical and current sales data for the area, as well as local economic indicators.

    2. If you’ve got a specific property in mind, examine its physical condition carefully. Look for properties with good bones and potential for renovation or improvement.

    3. Have a professional look at the property to ensure that there are no environmental issues or risks (such as the likelihood of flooding).

    Couple discussing property investment with real estate agent and looking at laptop

    If you’re ready to capitalise on a property investment opportunity — or to find such an opportunity — speak to the Seeff team today. We’ve got our finger on the pulse of real estate all around South Africa and we’ll find an opportunity for you to grow your wealth.

    Author: Seeff Property Group
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