OVER the long term very few investment vehicles have the same benefits as property when it comes to building a base for personal wealth, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
“Many savvy property buyers who have adhered to the golden rules of property investment have been able to enjoy remarkable returns on their investments and have seen the benefits that this asset class can provide.
“Even with the recession having its effect on the market, those who bought property at the right time, will still have seen massive growth on their investment, provided, of course, they made the correct choices at the start of their initial outlay,” Goslett says.
He notes that the largest advantage that any successful property investor has is knowledge.
“As with any investment scheme, research and knowledge of the market play a significant role in the success of that venture.
“Knowing where and how to invest can only come from extensively studying all aspects of the market, as well as the current conditions that have an influence over it.
“All rudiments regarding the investment should be carefully considered to ensure an informed decision is made.
“The investor will need to take into account factors such as location, type of property, phase of the market cycle and future appreciation potential.
“These elements of property investment will always remain important regardless of the conditions surrounding the transaction,” Goslett advises.
While seeking advice or consulting with professional financial advisers may come at a fee, the cost of taking action without being well-informed and prepared will be much higher.
Obtaining sound counsel from an experienced, seasoned property investor or financial adviser could be the difference between financial independence and losing vast amounts of money unnecessarily.
However, having said that, real estate investment is far less volatile and more forgiving than many other investment vehicles such as share or equity markets.
He notes that added to that, property owners have control over their property as an asset.
It is also one of the only forms of investment that can be financed and used as leverage.