PROPERTY STRATEGY

Very few people consider property strategy or feel that it’s too complicated, but it does not have to be scary process. If you are considering becoming an owner, or if you already own a property, then the PropertyCare.co.za platform can help you through an easy Step-By-Step general property strategy guide. This will help you with strategy formulation, however it should be noted that this guide should not be used as a basis for action without further professional legal/property advice.

The following is a simple property class shown against its corresponding wealth class. Each class requires a different investment strategy and it is always highly recommended that thoroughly research is conducted before one can put a huge investment into property.

Property Class Wealth Class
Land/Plot - Primary Property Wealth
House/Apartment - Secondary Property Wealth
Unit Trust/Shares - Tertiary Property Wealth

Property Acquisition Strategy – Property acquisition is not only about how expensive a property is or its location. One needs to have a purpose for acquiring a property, a time horizon and present & future circumstances. These will dictate the level of capital that is reasonable to invest, based on strategic needs.

Poor investment choices can result in overspending, undesirable location, high maintenance cost and later on, loss of property realisation opportunities.

Property Protection Strategy – Property protection strategy is essential to avoid loss of property due to natural disasters or accidental events, even divorce disputes, amongst other things. It is highly recommended to purchase adequate insurance to cover your property when things get tough eg. being temporarily unemployed, having a lean month if you are self-employed, experiencing disability or even death.

Property Estate Plan Strategy – Property estate strategy is very important as a form of control over your property estate after life. Make sure your will is updated regularly, especially when your circumstances change. Without estate strategy, there is no guarantee that beneficiaries will benefit from the property estate upon your death.

Property Exit Strategy – there is a time for everything, as we all know. But when it is time to exit of our property investment? It is so much better if we are adequately prepared. A properly managed exit strategy could assist one in getting a better deal as far as Value Realisation, Capital Gains Tax and Proceed Redeployment is concerned.

An exit strategy also assists with Property Disposal – the decision of whether to sell to a company or an individual person; and which method to use, ie. Auction, Private Sales, or Public Sales.

Disposal timing is worth considering in order to avoid unfavourable & unplanned exits that could result in investment loss.
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