5 WAYS TO PREPARE FOR BUILDING YOUR PROPERTY PORTFOLIO
Your property empire is not going to build itself. If you want to build an investment property portfolio, here are our top five ways to get started:
- VIEW AS MANY PROPERTIES AS POSSIBLE
You will make a better investment if you know the market. Study the areas you want to invest in and get to know them well. Know what the going prices and rent are and what good levies and rates and taxes are for the different areas.
- SET UP YOUR TRUST STRUCTURES
You need your Family and Property Trusts in place before submitting an offer to purchase. Remember, buying (even one) property in your name leaves you exposed and affects your ability to obtain financing for future investment properties.
- BUILD YOUR CREDIT RECORD
A good credit record is necessary to obtain financing. Always pay your bills on time and don’t ever allow a debit order to bounce. You need credit to get credit, so make sure you at least have a small clothing account, credit card and cell phone account in your name. The higher your credit score, the better your chance of getting 100% financing at a good interest rate.
- BANK WISELY
If you want to get 100% financing for multiple investment properties in an entity such as a trust, make sure your bank gives 100% financing for entities. It doesn’t help your bank has a policy of only giving 80% financing for entities. It also doesn’t help to buy in your name only to get 100% financing, because what about your future investment properties?
- EARN A SALARY ON A PAYSLIP
Whether you work for an employer or yourself, make sure you have a payslip with PAYE and UIF on it. Your gross salary should be at least three times the amount of the monthly bond payment on the bond you wish to obtain. Remember, banks love people who earn salaries.
And there you have it… Now your agenda can be – Building my empire