When assessing an investment opportunity the quoted yield is only the first part of the consideration. You should also consider the market valuation as the bank will only offer you a specific loan to value ratio usually 70% not loan to purchase price. In addition to this a detailed investigation of operating costs must be established and benchmarked. If the rental income is higher than market or rates are calculated using a very low valuation you could see a meaningful price correction as these values are updated in the future
In addition to using our data management system that is updated in real-time, we have firm relationships with landlords, funds, property owners and developers, giving us a competitive advantage and ensuring that you are kept updated on brand new developments and opportunities at all times. This includes properties that have been previously off the market as well as upcoming developments that are in the pipeline for construction.
Why work with Galetti Corporate Real Estate’s Investment team?
Our team has a deep understanding of investment needs and the various investment opportunities available across the country.
Our portfolio of investment opportunities includes commercial, industrial or retail in prime areas across South Africa, whether it be the economic powerhouse of Gauteng, the creative areas of Cape Town or the booming destinations of Durban and the Eastern Cape.
Additionally, our team will develop a full financial model to outline the potential economic opportunity the investment property offers.
Tips for choosing the best Investment opportunity
Consider what your reasons to invest are:
Are you looking for a long term investment that will generate income as a future dividend strategy or are you looking for a more short term investment that will generate more immediate economic rewards? This will help our team identify the type of property to match your requirements. We’ll also be able to develop a financial model to help you understand what return on investment you can look forward to.
Consider the type of property you are going to invest in:
Different types of investment come hand in hand with a variety of involvement. Are you willing to manage multiple revenue streams, like a petrol station could generate, or are you looking for something less hands on, like a single industrial space?
Where is the investment property positions?
Just like a business owner, you will need to think about where a business will thrive. Is the investment opportunity positioned near a main road making it easily accessible, is there enough foot traffic to make it a good retail investment or is there ample parking in the area to cater for employees? These specifications will help refine your search for the perfect investment opportunity.