1.    Accept that property is always a long term investment with ups and downs.  If you are out for a quick buck, you will not find it in property. 

2.    Secondly, set yourself the goal of building up a property portfolio which you expand steadily.  Do not sell your investment property, even to buy another.

3.    Third, do not rush this process:  avoid the temptation of buying many highly-bonded properties.  Rather buy one and gear it correctly before you move on to the next purchase.  Later, as your income increases, it may be possible to buy more than one property at a time.

4.    Fourth, diversify your portfolio.  Try to invest in both freehold and sectional title residential property, as well as small commercial and industrial units.  Try also to avoid being in one area. The markets fluctuate: if you are spread wide this will cushion the rises and falls.

5.    Fifth, accept that your own home is part of your portfolio.  Too often, as salaries increase, so does the desire for a bigger and better home, resulting in huge bond repayments.  Rather have a moderate home and save by having a small bond here and use the spare cash to buy elsewhere where you will earn rent.

6.    Sixth, unless you face financial disaster, do not sell.  The ancillary costs of buying and selling are high – you will have capital gains tax, agent’s fees, transfer and conveyancers’ fees – all of which will eat into your profit.

7.    Seventh, focus on income rather than capital growth.  The more cash you can actually collect monthly, the better your chances will be of buying elsewhere.  Focus on the cash and the capital growth will look after itself.

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