is property STILL A GOOD INVESTMENT?

Ever dreamt of being a property mogul – wheeling and dealing as you build up a formidable portfolio? Many fortunes have been made (and lost) this way, as it seems quite easy: buy a property, fund it with money from the bank, then rent it out. The rental income pays your expenses, and you have an asset that you can sell in the future for a handsome profit. Repeat, and grow rich!

But is it really that simple? It’s said that fools rush in, so best you understand what you’re in for before you get started.

Timing

Investing in property means being in it for the long haul, as the market operates in distinct cycles. ‘There are periods of steady growth, stagnation and sometimes even crashes,’ says Erwin Rode, MD of Rode & Associates, a company that specialises in property research, economics and valuations. ‘Depending on when