Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that determining what makes a good investment property involves analysing several key factors that contribute to both short-term and long-term profitability.
According to Goslett, the trick with an investment property is to find one that is appealing enough to generate good rental returns in the short term while also having the potential to appreciate in value in the medium to long term. Apart from this, RE/MAX of Southern Africa highlights other key indicators that real estate investors should consider before going ahead with a property purchase: Price Trends: Analyse historical price trends in the area to gauge potential appreciation and compare similar properties in the area to determine realistic rental rates.
Economic Growth: Regions with growing industries, increasing job opportunities, and population growth tend to see better property value appreciation and higher rental returns.