Step By Step Guide To Starting A Property Portfolio

By Kura Chihota

“What do I do to get into property? whats my 1st step?”

Step 1 – Mindset

All you can achieve in the world has to start with you achieving it first in your mind. Know that from what ever your circumstances are…you can achieve more.

Step 2 – Get a control on your finances

Property is a game of large capital sums so you have to have a sense about your own money and what you have to invest. A non negotiable is getting/staying ITC clear. If you are perceived to be ill disciplined with other peoples money…its unlikely they will lend you more.

Step 3 – Plan a budget

When you have control of your money a handle on your income and expenses, you can now make a plan on what to buy. A price range that you can afford comes into play.

Step 4 – Contact an agent/look at a website

Start going through the suppliers of stock in your price range. Check out or any other property website and scan for properties in your price range.

Step 5 – Walk the chosen property

You HAVE to know whats around the target property you are looking at…is it near a vlei (potential squatters?) or near a Gautrain station (potential gold mine). Look at who else has boards up around there and ask about rental levels.

Step 6 – Analyse

Now you have the information what it costs, what income you can earn….and what you can afford to pay. The analysis tools however fancy they get must give you the lowdown on the value of the investment on the simple formula ” income – expenses = balance” Is the balance greater than the cost of capital to you? does your budget allow you to “pay in” if the finance charges are greater than the income?

Step 7 -Action 

When you have a live doable deal on the table…you have to act. Don’t be hurried by anyone, do your research and get comfortable with the mathematics. Then…you are in that space where magic happens… you have to act. Know your numbers…make the offer…

Kura Chihota-Property Strategist

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