There have been a lot of people that were hit hard with investment property in South Africa during the Global Economic Crisis and this question seems to come up more often now. So is 
investment property still a good idea and can the ordinary man on the street make a success of it?
Well I’m here to tell you that it is still a great idea and you can make a success of it. If you are one of the people that ran into trouble with investment property here is some advice:
Learn from your mistakes
Being successful with investment property takes experience and patience. There are a number of so called “gurus” who sell you promises but as soon as the tide turns they turn around and blame you, the investor, for your failure. Personally I actually agree with that. You were the one that made the decision so you have to accept responsibility. So the first lesson you need to learn is that you need to do research and calculate if a certain type of investment property strategy can actually last, even through a Global Economic Crisis. A particular method of investing is based on refinancing your properties and as many investors have now learned when the going gets tough, the banks don’t refinance no more…
Don’t give up
Yes, you got burnt, so what. Take a deep breath, sit down, and write out a detailed plan on how you are going to get out of the mess you’re in. Many investors have found the banks to be relatively accommodating, well at least some of them. The important thing is to do proper research on investment property before you get in to it again. You need to bank the experience you got and get back on the horse, but with the right saddle this time.
Yes, it is probably going to take you a couple of years to get back into the market but use this time wisely and learn as much as you can so that when you are ready for investment property again, you’ll have the knowledge and the tools to make a great success of it.
