Record-low interest rates in South Africa have made investing in property an easy choice for investors looking to buy property to diversify their financial portfolios. However, buying property is only half of the equation. If your property is to bring you the financial gains you are looking for, it’s recommended that you have it managed by an experienced property management company who can ensure that you see the best return on your investment.
Interest rates cut to record lows
On the 23rd of July 2020, the announcement was made by the South African Reserve Banks’ Monetary Policy Committee that the interest rate had been cut by 300 basis points to help consumers deal with the impact of the COVID-19 pandemic. A succession of rate cuts by the South African Reserve Bank has now brought interests rates to a record low. As of 24 July 2020, the prime interest rate stands at 7%, the lowest in 5 decades – making it the ideal time to borrow money.
Property management: make or break
While the financial environment might be perfect to buy an investment property, it’s critical you understand how to manage a property the right way. As a landlord you will be forced to wear many hats and how your property is managed is going to make or break your chances for success. The majority of property investors do not have the time to find and vet the right tenants, manage the levies from their properties, attend to the wear and tear relating to their buildings and make the right decisions needed to maximise the revenue generated from their properties. To get the best returns from your property, it’s essential you choose the right property management company.
Making the right property management choice
Before you hire a property management company, it’s important that you ask some critical questions like, do they have a local presence? What type of reputation do they have? If you have a commercial building, do they have experience in this type of property management? Are they able to provide transparent and honest communications? How experienced are they in the latest landlord-tenant and lease laws? If the going ever gets tough, an experienced property management group will ensure your investment is properly protected.
Start right and see the returns
Making the right choice in a professional property management company from the start puts your investment on the right footing and can ensure you see strong returns even in tough market conditions. For more information about how the EA group can help you maximise your property investment, contact us today.