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(USGovernment-News.Com, September 30, 2015 ) Johannesburg -- The information officer of Fitzanne Estates recently explored a question that majority of South Africans come to find themselves having to ponder on. Should I buy or rent this property?
The Fitzanne information officer comments, "It might seem like an obvious answer or common sense scenario to many intellectual individuals. However to some the idea of paying off debt and renting a property that might one day become private property is appealing.
Some banks have stringent criteria as well as deposits necessities thus making it difficult for new entries into the market. While if you know that you have bad debt records it's an obvious case that this option of renting to buy for you is not available."
The information officer of Fitzanne Estates also shared crucial advice with regards to buying to let. He comments, "When it comes to buying to let you must be directly involved in everything. Your approach must be hands on. For instance when you go into a rent to buy agreement and you decide to place a tenant in that specific property.
You must look at the credit ratings of prospect tenants first. Building a relation with your tenant will be necessary. When it comes to investing it's vital to invest in places where you feel comfortable. It's obvious that there is a big difference between Hillbrow and Bryston. It also important to be realistic and to have goals set.
Buying to let is not a short term but a long term investment that you must be fully prepared to be in. It can last from four to six years. You must be patient and focused in order to achieve your objectives."
He added, "You must also make sure that all the costs that include maintaining, property rates, levy and other costs are covered by the rent. Once you are sure of the rent price consider the year to year increments that are fair so as to keep a tenant, rather than having to always look for tenants who might end up giving you more problems."
Becoming the owner of a property that you are renting out is almost similar to a business, as all the costs that are involved are prone to tax. Keep all records in correct order such as costs of, security, maintenance and repairs.
Interest on mortgage bond, council taxes, rates. Agent's fees for property management services and finding you a tenant. He noted, "Consider getting apartments that are furnished because there are a good investment especially if you are targeting occupants that stay for a short while.
However letting a fully furnished apartment does have its own risks and it can be time-consuming as it will be a requirement to always conduct inspections so as to make sure that a tenant who tends to destroy any of the property pays for it. If you feel as if you cannot manage to consider using a letting agent. Many agencies charge fees to conduct interviews, credit checks, advertise and select the best tenants.
The property management company names that offer the best services are easy to select .Charges vary but a majority are normally 7 to 8, 5 % the total value of the lease for property management. For a piece of mind a letting management company is the best available option. For more information visit http://www.fitzanne.co.za/ .
About Fitzanne Estates: Fitzanne Estates is a property management, letting, sales company that is based in Johannesburg and Pretoria. It has been in the property industry since 1982. It has a management portfolio containing more than 6000 units. The property firm strictly adheres to all the necessary legal requirements concerning property law in South Africa.Their main purpose is to sufficiently administer property to the benefits of landlords the Body Corporate and the Non-profit Company.
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