Have you ever wondered if real estate is a sound investment? Well, it certainly can be! There are people out there who have invested in real estate and created a very comfortable lifestyle for themselves. That being said, there are also people out there who have lost everything due to bad real estate investments. When it comes to investing in real estate, especially for retirement purposes, it takes quite a bit of knowledge, skill, intuition and guts. Here are some tips to consider when it comes to investing in property for retirement income:

  1. Make sure to increase your real estate knowledge
    It goes without saying that to be good at anything, you need to know what you are doing. There are many seminars that you can attend that focus on how to invest in real estate. You can also read books on the matter and with the internet, all this information is readily available to you.
  2. Make sure to polish your skills
    There are many ways to invest in real estate. You can purchase a home or piece of land that you can flip, or a home that you can remodel and sell at a higher price. Otherwise, if you are looking to generate an income that can be used for retirement, you can look for income-producing properties such as commercial office spaces, apartments or homes that can be rented out. It’s important to assess your skills before purchasing a property. For example, if you have close ties to the development plans of your area, you could have a knack for spotting pieces of land that will increase in value over time and if you know contractors, you could be able to get remodels done at a discounted price.
  3. Make sure to develop your intuition
    Have you ever heard the real estate saying, “Location, location, location”? Well, this saying is very true. You need to have some intuition as to what areas will become popular over time, and what areas will deteriorate over time. We recommend avoiding buying property in areas that you are not familiar with.
  4. Have the guts to take the leap
    When it comes to investing in property, you need guts because there will be taxes to pay and there will be times where your rental properties are left unoccupied. Just because your rental property is vacant, doesn’t mean that you don’t still have a mortgage, repairs and maintenance costs to pay. That is why it is so important to choose the right property to invest in. Flipping properties will take guts too. Because the property might not sell as quickly as anticipated, that is when you need to have the guts to hang on or the guts to sell the property at a lower price.

The takeaway here is that real estate can be an excellent investment and can generate a great source of income while you are enjoying your golden years. However, you must go about it in the right way. If you are planning on using real estate to build a source of retirement income, make sure to be patient and work systematically as you build a portfolio of income-producing properties. Never jump the gun, do your research and make the right decisions, this way you can enter retirement with peace of mind.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

INCREASE IN TRANSFER DUTY EXEMPTION THRESHOLD MAKES IT EASIER FOR FIRST-TIME HOMEOWNERS

Transfer duty, the money payable to SARS on the purchase price of the property gets determined...

NSRI’S WATER-SAFETY TIPS

It’s always tempting to take the plunge when temperatures soar and you’re in the holiday spirit....

Safe banking over the festive season

The South African Banking Risk Information Centre (SABRIC), on behalf of the banking industry,...

Reflecting on the Year 2020

The year is beginning to wind down pretty quickly and most of us are trying to fit in as much as...

HOUSING PRICES SPIKE INTO DOUBLE DIGITS

  During South Africa's lockdown, the average house price went into a rapid decline, with...

LANDLORDS AND TENANTS: Know Your Rights

This year, many stressed South Africans have been forced to tighten their belts yet another...

POPIA – THE SUMMARY

PROTECTION OF PERSONAL INFORMATION ACT (Also known as POPIA) Why do we need the Protection of...

Rent Versus Salary - What South Africans can afford accommodation?

Even before the global pandemic, South Africa was in dire a dire economic situation. Acting as a...

DECEASED ESTATE PROPERTY TRANSFERS

During a person’s lifetime, he/she will accumulate assets as well as liabilities. The assets can...

THE IMPORTANCE OF HAVING A WILL

    Most people do not know whether their loved ones have executed a Will, where...

PROS AND CONS OF EACH TYPE OF PROPERTY OWNERSHIP

Though many might not be aware of it, there are three different forms of homeownership in South...

EVERYTHING YOU NEED TO KNOW BEFORE HOUSE HUNTING

With more affordable property prices and bank approval rates at historically high levels, coupled...

FAQ's When Buying or Selling a Property

Q: To whom do I pay the deposit? A: The Purchaser’s deposit can be paid either to the estate...

CERTIFICATES OF COMPLIANCE

If you are selling your property, then you are going to most certainly need a number of...

PROPERTY PRICING - WHY AND HOW TO GET IT RIGHT

When it comes to putting a property on the market,  some sellers believe listing the property...

MY TENANT WANTS TO BUY, CAN THE RENTAL AGENT CLAIM COMMISION?

With the interest rate at a low 7%, tenants are finding that it might be cheaper to purchase...

HOW MANY CONVEYANCERS DOES IT TAKE TO TRANSFER A PROPERTY?

Buying or selling a property for the first time is a milestone event in any person's life....

DIVORCE & ACCRUAL – LIVING ANNUITIES AN ASSET IN THE ESTATE

In the case of CM v EM it was held in the Supreme Court of Appeal of South Africa...

BUILDING VS HOME CONTENTS INSURANCE KNOW EXACTLY WHAT YOUR INSURANCE COVERS

It appears that many South Africans took the opportunity to do renovations at their homes, during...

HOW TO FAST TRACK THE PURCHASE OF YOUR PROPERTY

Purchasing a property is a big decision, one in which the buyer will have...

THE IMPORTANCE OF A LIVING WILL 

What is a living will? A living will is a document that lets people state their wishes...

SOUTH AFRICAN WOMEN'S DAY

Have you ever wondered why we celebrate Women’s Day on the 9th August in South Africa? It has...

DOES YOUR HOME OFFICE QUALIFY YOU FOR A TAX DEDUCTION?

Does your home office qualify you for a tax deduction? As the old adage goes, change is as good...

HOLD ON TO YOUR STATUS AS A HOMEOWNER

Clients in financial difficulties in these tough times can get to keep their homes, provided they...

THE PANDEMIC AND BUSINESS INTERRUPTION COVER, CAN YOU CLAIM?

  “…it must be asked whether, but for the Covid-19 outbreak, the interruption or...

THE MEDIA MAY BE CALLING IT AN "ACT OF GOD", BUT WHAT DOES THE LAW SAY ABOUT FORCE MAJEURE AND COVID-19?

When disaster strikes it is easy for the world to fall into disarray. The impact of natural...

A DAY IN THE LIFE OF A CONVEYANCER DURING THE COVID 19 PANDEMIC!

A DAY IN THE LIFE OF A CONVEYANCER DURING THE COVID 19 PANDEMIC! Armed with comfortable shoes,...

Electronic Signatures in Property and Other Transactions

“To sign a document means to authenticate that which stands for or is intended to represent the...

POPI COMES INTO FULL EFFECT ON 1 JULY ARE YOU READY?

Protection of Personal Information Act “POPI” Comes into full effect on 1 July 2020 Are you...

QUESTIONS TO CONSIDER DURING THE REPORTING OF AN ESTATE

Questions to consider during the reporting of an estate   How do I report an estate to the...

ALL YOUR PROPERTY QUESTIONS ANSWERED!

All your property questions answered!   Experts answer your questions on property matters...

NO FFC - NO COMMISSION NOT ALWAYS THE CASE?

NO FFC – NO COMMISSION NOT ALWAYS THE CASE?   Estate agents are not entitled to earn...

LANDLORDS MUST 'GET REAL' ABOUT PROPERTY PRICE EXPECTATIONS

Article By Bonny Fourie Property 360 / 7 June 2020 Property is only a sound investment if you...

BUYER'S MARKET LIKELY TO LAST

Article courtesy of Property 360:  25 May 2020 No rush if you want to buy – market will go...

4 SMART THINGS YOU CAN DO RIGHT NOW TO SAVE MONEY DURING SA’S DEEP COVID-19 RECESSION

South Africa was headed for a recession way before Covid-19 turned everything upside down. As a...

PROPERTY SELLERS – PREPARE FOR SPLUMA

Many factors can delay your property transfer, and all of them are likely to cost you.  A...

WHAT ARE YOUR RIGHTS WHEN IT COMES TO FORCED COVID-19 TESTING?

As the COVID-19 pandemic is spreading across the globe, Minister of Health, Zweli Mkhize has...

How to make a will and get it witnessed

Locked down during the pandemic: How to make a will and get it witnessed The last few weeks have...

IS YOUR HOUSE IN ORDER?

Getting your house in order involves big things, such as having life insurance and a valid will,...

WHAT HAPPENS TO THE SIGNED ANTENUPTIAL IF YOUR WEDDING CEREMONY IS POSTPONED DUE TO COVID-19

The Covid-19 pandemic and the national lockdown that was implemented in order to contain the...

Arrested under the Disaster Management Act?

Arrested under the Disaster Management Act? You have the right to challenge it! Admission of...

The risks of dying without a will (Albeit not a valid one)!

Although we are in lockdown and may be working for home, many of us have a bit more time on our...

DO TENANTS STILL HAVE TO PAY RENT DURING LOCKDOWN?

 Following please find answers to the pertinent questions regarding the payment of rent...

TIPS FOR INVESTING IN PROPERTY FOR RETIREMENT

Have you ever wondered if real estate is a sound investment? Well, it certainly can be! There are...

FAQ’S FOR DIVORCES

HOW LONG DOES THE DIVORCE PROCESS TAKE? A divorce action can be finalised within one month or it...

NEW RULES FOR WHO GETS THE KIDS THIS WEEKEND

Who gets the kids this weekend? Following please find new regulations around the movement of...

WESTERN CAPE RENTAL CONSIDERATIONS

In recent times the Western Cape has become the area to stay in. With the spectacular sea view or...

CONTACT OUR PAARL OFFICE

Email: paarl@nsvattorneys.com
Tel: +27 (0)21-870-1185
Address:
 138 Main Road, Paarl, WC 7646

CONTACT OUR TYGERVALLEY OFFICE

Email: info@nsvattorneys.com
Tel: +27 (0)21 914 4481
Address: 
5 Ground Floor, Bateleur Office Park, Pasita Road, Tygervalley