Should I buy, fix, sell and get RICH!!!!!!

Yesterday, I bought a PIP (Yup! a property in possession). 
Thank heavens some other sucker could not afford to pay his homeloan.
I scored, I really, really scored as I could raise some money
from my other homeloan for this house. Oh, what a bargain!

Now, I am going to do quick, fixit, with my gardner and a couple of guys off the street who walk around carrying paintbrushes and ladders with card board adverts.  They are really so cheap and desperate for work that a few more bucks will sort that out.

Then i'll sell it on Private property so that i do not need an agent and I'll save myself a fortune.

Speculation, the mothers of invention. (Sic)

So whats the reality in property!!! Or does reality exist in properties in possession!

Owning property is no doubt great.  Owing the bank money for the property is not so hot, but the truth is not all of us have hard earned cash!!

Second mortgages, even third and fourth ones to cover that little speculative property, can be great when things are good and you have rental income, but not so great when the burning hole in your pocket hurts like crazy.

A quick fixit, can also be a quick drain on cash, especially with no recourse and no guarantees.  so be careful.

Choosing the right place and area.  That is tough to answer.  Position, position, position means cost, cost, cost - You pay big time, for the big view.  So keep these thoughts close and keep your head at all times.

The key thoughts are, are there people with money.  Parents with student kinders.  Older folks needing places without stairs.???

Real estate agents actively active in the area.  Do properties move in the area.  Do the banks finance in the area.  That information is always available for you. get a great real estate agent or mortgage originator to assist you.  they will, they want your business.

Oh, yes, please do not forget, selling means you need buyers.

Selling means you need a nice place for someone who wants it with things that work.

so, let us hope that your painter with the ladder is not the owner of the PIP!!!!  mmmmmmmmmmm

be cool, be cool!!! Its still a good deal, just make sure you prepare yourself well -- ask the debt doctor he can tell you everything

Top 5 buyers tips for a declining real estate market!

Goooooooooooooooooooood Morning South Africa......


For those of you visitors who aren't native to South Africa, we used to have a TV show in the mornings (the apartheid days) where we all used to sit around the television and wait for the first morning show to start at 6:00 am (i think) called "Good morning South Africa", just thought I'd add my little "Gooooooooood morning Vietnam" twist to it...!


Before I carry on with my "5 safest buys in a economy that's taking a beating" post, I just wanted to say that I'm tired of people feeling sorry for themselves. I'm tired of people being unhappy in these gloomy times and I think it's time that people realised that even if it's a GLOBAL meltdown of world economies that we might be experiencing, there's always light at the end of the tunnel, and I think it's times like these that we all need to stick to friends and families and see the positive side to life! MONEY is not EVERYTHING!


So, smile, be merry & we're going to try and help you do that by giving you 5 tips for buying properties in a tough economy. Remember, when economies are down, people need money, this means bargaining skills and patience are the keys to scoring that ultimate real estate investment.


We have one advantage to our interest rates being so high. Those people that bought houses that they couldn't actually afford, are the people that are going to have to downscale (no offense to anyone but it's the truth). It means they're going to have to sell, or their properties are going to be repossessed. However, with times like these the banks aren't granting home loans. This is resulting in a massive influx of houses going on auction.


TIP 1: Keep your eye our for auctions, BIG BIG BARGAINS.


Think about your property before you buy it, think about the location. Everyone needs schooling. So why not buy around close to a school or educational facility like a varsity or college? It means you can save money by allowing your kid to walk to school. It's also a very safe buy because generally, prices of house around schools don't decline. I bet a piece of real estate next to Harvard or Cambridge is worth a fortune :)


TIP 2: Buy close to a school or educational facility.


Deposit, Deposit, Deposit... Make sure, that you have enough money to pay a 10% deposit PLUS cover the registration and transfer costs on a property. With banks being as tight as a ducks backside at the moment, it's imperative that you put down a 10% deposit. In fact, most banks are probably going to end up offering 90% loans by the end of the year.


TIP 3: Put down 10% deposit and cover bond + registration costs


World Cup 2010, tourism boom!!! Where are the stadiums? Where are the tourist hangouts and places to be for travel industries throughout South Africa. Do I need to say more on this topic? Let me give you a hint, Cape Town - Seapoint & Greenpoint seaside apartments. You will not get a better return on rental investments anywhere in the world. Greenpoint stadium is right up the road, Waterfront is right down the road, and it's central and on the seafront. I'm buying!!!

TIP 4: World Cup 2010 rental market

Use a bond originator to get your home loan. The silliest and most simple mistake you can make when applying for a home loan is to not use a bond originator. The service is free, the admin is ZERO and they'll apply to all the banks on your behalf at NO COST. It's really a no brainer. They know the tricks of the trade and WILL fight for your loan as it's their living!

TIP 5: Use a bond originator when buying property

Hope this helps.
WizardMan Out!

Manage Your Debt Responsibly

Hello all... So good to see that people are still reading the SA Property BLOG, and we're proud to say that it's now the number 1 portal and information station for all South African property and finance related information.

Seen as the only ongoing and exciting news in the world of property right now is the national credit act I though we'd put together a little list on how to manage your debt responsibly. We get endless phone calls and email from people asking us about credit issues that they have, and personal loan debts and it's quite sad to see that so many people are in the financial dilemma's that they're in...

So once again in an effort to help South Africa become and debt free society here's the TOP 10 yes TOP 10 debt management tips and hints that help people Manage Their Debt Responsibly.

• Avoid Making Impulse Purchases - If you don't have the extra cash to blow, avoiding blowing it. Instant gratification is all fine and well but it ain't that great when that bill arrives and you realise you can't afford it


• Speak to your creditors - When you're in financial SHIT, speak to your creditors, tell them the predicament you are in and come to a mutual agreement and understanding, even if it means dropping your monthly payments. Missing payments will affect your credit ratings.


• Get credit only from Registered Credit Providers - Stay away from loan sharks unless they are registered.


• Always make your monthly repayments by your due date - NEVER MISS EDGARS ACCOUNT REPAYMENTS. These guys will list you in 2 ticks...


• Pay off your credit - Any extra money that you have at the end of the month, use to pay of your credit. If you have, put this cash into your bond account. At 13.5% interest you won't get better rates anywhere else.


• Kill your small account first - Alot of people say kill the loan with the highest interest rates first (normally your bond account) but I'd suggest killing the smaller ones quickly, thus reducing the amount of accounts to pay off.


• Moving Debt - Don't move short term debt to long term debt to increase your monthly cash flow, your interest rates will increase


• Don't stand surety for anything unless you can handle it - This is a killer. People sign surety for other people without realising that they become responsible for repayments should the other person for whatever reason not be able to pay. WATCH OUT!


• Live within your means - Don't over commit.


• Know your credit ratings - Check yourself out at least once a year. You can get a free credit check on your birthday from the credit bureaus. Otherwise Wizard can get you credit checks for a price of R125.00. See Credit Checks for more information

For a DEBT FREE SOUTH AFRICA!

WizardMan Out!