Its value appreciates between 5 and 20% per annum depending on where it is in the world. Prices in Southern Africa have had the biggest appreciation year on year than anywhere else in the world. You don’t have to actively improve your property for it to appreciate in value. You can buy it and sit on it and it will quietly make you money while you sleep.
Buy bargains and wait a few years and sell for a sweet profit. Look out for up and coming areas and have the foresight or seek advice on the best areas to buy in order to see a big return on your investment.
Rental income on your properties not only gives you a monthly income, but it can be used to pay off the mortgage if you bought the property through the bank. There are lots of scheme in Europe and Great Britain which are specifically designed for this type of property investment. “Buy to Rent”, as the schemes are called, are designed for the property investor who does not have all the cash upfront. The bank lends you most of the money and your tenants service the bank loan. That’s how to get rich with someone else’s money!
Houses can be bought to renovate and resold quickly. Remember not to overcapitalize or personalize the homes too much, as this limits the pool of buyers. Look for cheap houses in good areas and do them up for a quick turnaround profit.

Property is by far the best investment to make. Your money is secure, it is tangible and it makes you money if purchased at the right time in the right place. Remember there are not enough houses to supply the ever growing population. When demand outstrips supply, prices will escalate. With a new surge of returning residents from the diaspora, the demand for property is increasing in Zimbabwe. Now is the time to buy property, and sit back and make a sweet mint on your investment. 

So often I see beautiful houses in the wrong area or with no borehole (or a dry borehole, which we in the industry call a “Long drop”! After all you do have a hole in the ground which could be used for ablutions if a crisis hit!!!) At the end of the day, these are the two most important factors that affect property prices.

You can change your property: knock it down and start again; add a bathroom; change the kitchen, BUT the two things you can’t change are the location and the water situation. Before you buy a house, these are the two things to consider. And once you have bought the house the amount of money you spend on it is also important.

If your property doesn’t have water and is not in the Northern suburbs, I would advise you to be very cautious on the amount of money you spend to renovate it, because when it comes time to sell it, you may not get your money back. In other words, you would have overcapitalized the property.

Remember if one has $300 000 to spend on a house, one would rather buy in a good area, than a beautiful, modern, state of the art home in the wrong area.

These are some points to consider when doing renovations, and they apply to any area whether the property has water or not:

1. Don’t personalize your home too much: One day when you come to sell it, the future buyers may not want some of the additions to your home, especially if you have to walk through one bedroom to get to the extension.

2. Try to avoid putting up too many outbuildings as these clutter the property and even a big stand looks small.

3. Colour schemes are so important. Wall colors can be changed, but permanent fittings in the bathroom should be white if possible and the tiles should be neutral with an accent color. Coloured bathrooms date your property. Also carpet color is a big factor. These are expensive, so try to choose neutral colors that can be a blank canvass when someone else buys your home.

4. Saunas and tennis courts are a dodgey subject, because although very valuable, not everyone is looking for those features in a property and won’t see them as value adding if it is not on their list of wants.

If you are buying a house on spec to renovate and resell as quickly as possible, these are things to consider doing:

1. New Kitchen
2. Clean white bathrooms with accent colour
3. Borehole (This can add up to $30 000 to the value of the property and costs about $6000 to drill and case)
4. Wall the property and add security, like electric gate, electric fence and alarm
5. Fresh new flooring
6. Paint the whole house inside and out, again keep things neutral, but not white!
7. Don’t do too many structural alterations, unless you have a good builder and the alterations are going to add huge value to your investment.

Remember if you are renovating property as a business, you need to keep costs down, but still have a first class finish. You don’t have the luxury of letting house prices appreciate over time like normal homeowners, so the way you spend your money to improve it and resell at a profit must be done with careful thought.

I would appreciate your feedback and am always happy to give advice if needed…Leave me a comment and I will be sure to get back to you! Enjoy the weekend!
 

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