Property investment: Keeping firm control of your investments

One of the many reasons why direct property investment consistently produces superior returns is the fact that it allows an investor to retain firm control of his or her investments.

"Many investors, understandably confused by the wide range of investment 'vehicles' and 'mechanisms', all shrouded by foreign-sounding 'financial' jargon, simply hand over their hard-earned money to an unknown third party – be it a financial adviser, a banker or an asset manager - without really understanding the investment option they implicitly select," explains Dr Koos du Toit, CEO of P3 Investment Group. “Essentially, in doing so, these investors relinquish responsibility for their money and their financial future. They have absolutely no control over their investment and can do nothing to influence the performance of their investment, except to hope that this third party will deliver on the promises made."

Professional property investors, on the other hand, have empowered themselves with knowledge of how property investment works. Given the stunning simplicity of the property investment model, they are able to do their own due diligence on each investment opportunity, to ensure they invest their money in a good property in a good area with solid rental demand, where it will earn not only ongoing, compounded capital growth, but will also produce an ongoing, inflation-linked passive monthly income for life. They know exactly where their money is at all times, in a bricks-and-mortar property they can see and touch.

"An investor who directly owns income-producing properties is not at the mercy of volatile market sentiments or the performance of asset managers, but can actively manage his or her portfolio: taking advantage of exceptional buying opportunities, adding additional income streams, renovating or refurbishing properties to increase income potential, negotiating with tenants to avoid a vacancy or increase the return, and even selling non-performing assets if necessary," says Dr du Toit.

"For this reason, you will seldom hear professional property investors lament the poor performance of their salaried asset manager, or bemoan the fact that the economy has decimated their portfolios or that events on the other side of the globe has vanquished their carefully crafted long-term strategies."

On the contrary, property investors who take a professional approach to their property investment business never relinquish control of their hard-earned money, or their future success, to any third party. They, and they alone, assume responsibility for their success and their wealth, and as professionals, they are competent and confident in doing so.

"This confidence is derived from following proven step-by-step systems, including using custom-made software, and implementing tried-and-tested risk management strategies, such as appointing a reputable rental management agent and taking out rental insurance," adds Dr du Toit. "In this way, professional property investors make solid investment decisions, manage their risk prudently and reap the benefits of an investment strategy that has proven to be infallible when applied correctly."

In addition, while professional property investors never relinquish control over their money and their investments, they certainly do not have to do everything themselves. They appoint experts – such as reputable rental management agents and trust specialists - to take care of the details. As such, professional property investors do not manage properties or tenants. They manage growing property portfolios and they manage the experts they have appointed to take care of the details. They have mastered the fine art of delegating authority without abdicating responsibility. They are concerned with identifying lucrative areas, scrutinising individual deals, negotiating, and turning their vision of passive income and wealth into reality.

"Professional property investors take control of their own destiny, their own success and their own investments, with the assistance of professional organisations, such as the P3 Investment Group, which streamlines and simplifies their lives," concludes Dr du Toit. "And at the end of the day, professional property investors – and they alone - reap the benefits of taking full responsibility for their own wealth creation."

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