If there is any business in South Africa that is truly lucrative and extremely profitable, it has to be property business in South Africa also known as Real estate business.
Most of the top billionaires in South Africa are real estate investors. The business is a money spinner to the highest level. Property business is currently booming in South Africa and people are making millions in it.
Today, we want to take a closer look at the business and see how you can invest in this sector of the economy (irrespective of how much you have) and make serious profit.
One very good thing about property business in South Africa is that the investment opportunity is so diverse that there seem to be something for everyone. Anyone who wish to invest can invest whether he has thousands or billions, you can even invest without any money in your pocket. Let us see how it works. We will try to highlight some of the best investment opportunities in the industry, and expand on the topics in the subsequent articles.
Profit Potential In Real Estate Business
Before we proceed, we want to look at the profit potential in real estate business in South Africa. There is this petty medicine seller who is now a multi millionaire through estate investment, he started few years ago. And he started with almost zero capital. We know how some of the millionaires in the industry started. Some of them started as small real estate agents in a kiosk. Today, they control the finest estates in South Africa. The potential profit in property business is very high. You can buy or invest in a property worth r1000 and in the next 1 year, the same property will worth r3000. That’s a great profit.
Investment Opportunities In Property Business In South Africa
Investment opportunities abounds in real estate. Start with what you have. As you grow in the business, you can expand your portfolio. Or you can start big straight away if you have access to capital. In this article, we will only deal with real estate categories that are peculiar to South Africa. Suffice to say this article is made specially for beginner real estate entrepreneurs. Here are some of the areas you can invest and make your own money without tears:
1. Land Flipping:
This means buying of land and quickly reselling it for profit. This is one of the smartest investment in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buying tens of plots and acres of lands and keep selling all year round.
2. Open Space Leasing:
This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. They will be paying you monthly rantage while the property still appreciates for future sell. It is like borrowing money for someone and get paid double interest and still get your money back.
3. Real Estate Agency:
This one is the simplest and easiest of them all. It is not investment per say but service rendering. How it works? Go round and look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid percentage as commission base on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.
4. Property Development:
This is where the big guys in the industry are doing their stuffs. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high profit margin. If you spend r500,000 to develop a property, be sure you are going to sell for r800,000 or more.
5. House/Office Rent:
Build a house and put it up for rent, get paid all year for a life time. That is exactly how this work.
Note: You can start some of these property business with no money in South Africa, But it you have the cash, we will advise you to invest in property business (Real Estate). It will always be profitable and lucrative.