The property GAME

Since the dawn of time, property ownership has been a sign of wealth. But is it a good idea and where does one start?

- SYLVIA WALKER

American writer Mark Twain famously said, ‘Buy land, they’re not making it anymore,’ and there’s truth in that! People always need a place to live, work and relax, so property can be a money spinner for the savvy investor. But it’s not easy money, so make sure that you understand all the options before you jump in boots and all.

BUY TO LET

Ever fancied yourself a landlord? Buying property for long-term rental can bring in a nice income as well as capital appreciation if you sell one day and it’s grown in value. You may need to finance the sale if you can’t buy cash and this will add to your costs (interest and bond registration costs). Some other costs will also need to be covered, such as transfer fees. Before signing on the dotted line, calculate your yield (rental income less expenses such as maintenance, levies, rates, bond repayment, etc.) divided by the price of the property. Also determine the yield of other properties in the area, so you do not end up paying too much. Neglecting this step could be financially disastrous.