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."

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
    • 12 Jan 2018
      After an exceptionally good 2016 during which the Winelands residential market outperformed the national average by a considerable margin, 2017 was marked by a difficult winter which saw a notable slump in sales and demand.
    • 12 Jan 2018
      Small spaces can make a big impact. Irrespective of size, an aesthetically pleasing outdoor space can be a major selling point for prospective buyers. “Even if the outdoor area is small and only enough to sit and have a cup of coffee, it might just be the feature that makes the stand out from others in the neighbourhood,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 12 Jan 2018
      The boom of the digital age has opened up many doors to the way we buy and sell property. In the past we used to pop out and pick up the latest copy of the property magazines available, today we switch on the PC or grab our smart phones as online property portals & Facebook has become the new ‘go-to’ for anything, including shopping for your new home from the comfort of your couch.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us