There’s money to be made in real estate. A certainty we can all be sure of, but not one we are all educated to benefit from. Let’s face it, besides for those who are currently employed within the property investment and real estate sectors, who truly knows enough about South African property to become ‘master’ investors?
“Not all my property investment decisions have proved financially fruitful, but as with anything one learns as much from your failures as you do from your successes,” says Director of Opportunity Global, Nick Morgan, “The best way to learn is by putting your theoretical knowledge into practice.”
The few people capable of saying that they have made millions from their property investments are those who are educated and familiar with all the aspects of investing. With property, three fields of investment expertise should be mastered; financial, legal and geographical.
“I think that the SA education system as a whole fails our youth and young adults. Nobody teaches them how to invest,” says Morgan, “That is why 95% of our population cannot afford to retire. They are simply not sufficiently educated in the arena of making money and growing wealth. Much more emphasis must be placed on skills required to do this, which will certainly elevate the standard of living for many.”
Nick Morgan graduated from the University of Cape Town (UCT) and went on to expand his investment-knowledge at HSBC Investment Bank for 6 years. He is not only the Director of Opportunity Global since January 2006, but he is also a passionate investor himself, and author of his very own E-Book, titled: BUYING PROPERTY IN A RESIDENTIAL ESTATE.
“As we [Opportunity Global] are involved in the residential sector and very active with estates in particular, I felt a short, uncomplicated guide showing inexperienced buyers the key points to look for when purchasing homes in this arena would prove beneficial. It is a simple guide, specifically tailored to be short, user-friendly and practical.”
This 35-page on-line booklet is a great user’s guide for all novices to the property industry. It explains, informs and provides a check-list to readers on “identifying the main aspects to investigate before making a purchase”.
Morgan goes on to expand on the following five considerations before deciding which residential property to purchase, discussing each in individual chapters:
CHAPTER 1: The Estate Set-up, Planning & Design
Here Morgan identifies what an estate plan is compiled of and how it should be managed, with a look at the management concepts of Homeowners Associations and Bodies Corporate.
CHAPTER 2: Security
A look at the degree of importance and influence that security aspects have on any property value.
CHAPTER 3: Facilities
Morgan delivers reasonable comments when identifying the value of amenities, as he writes, “residential estate’s themselves do not necessarily enhance your lifestyle, it is the facilities within them that contribute to this, and it is the range (or lack) of these which require investigation.”
CHAPTER 4: Construction Quality
Construction, for those looking at new estate developments, is an area that requires diligence and certainty. Morgan goes on to list useful questions to remember when considering which construction company to employ.
CHAPTER 5: Developer Commitment
As the Developer is the innovator or creator of any new estate, it is vital to do a background check to minimise risks when considering which Developer to invest with.
“I have seen many ‘investors’ burned by trying to force deals that they “couldn’t refuse”, but ultimately did not have the finances to sustain. Over a prolonged period of time, property will always give you a good return. Just ensure that you can afford to pay for it when required.”
At the end of the booklet, Morgan provides a 30-Point Checklist to work through before making any residential estate purchase. The checklist is easy to implement with any property search and is compiled out of all the relevant questions to match your needs and wants with the estate you may be considering.
“The sad fact is that there exists a wide chasm between the good estates and the not-so-good estates,” writes Morgan, “and making the wrong choice can be catastrophic, not just to your finances, but to the happiness and well-being of yourself and your family. I read voraciously about the property market and encourage prospective investors to do the same.”
If you would like to read Nick Morgan’s E-Book, BUYING PROPERTY IN A RESIDENTIAL ESTATE, follow this link and expand your insight on the South African property market. You can also contact Opportunity Residential, if you’re considering properties for sale in The Vaal area, Gauteng.