The pros should exceed the cons
When looking to invest in real estate, seek out tenanted rental property, advises Rainer Stenzhorn of leading property auction house, In2Assets.
Stenzhorn says this type of investment – frequently available on In2assets’ monthly commercial property auctions – offers many benefits. “If the buyer’s goal is to expand his or her real estate portfolio, generate cash flow, and maximise returns, a tenant-occupied rental investment property could be just right. But, like other investments, there are pros and cons to a property acquisition – and the pros have to exceed the cons.”
In2Assets assists potential buyers of tenant-occupied properties to notch up the pros through:
* Helping buyers to accurately calculate their return on investment;
* Providing detailed historical data on rental properties to ensure affordability and punctual payments by tenants;
* Offering property inspections for buyers to assess quality of both tenants as well as the condition of improvements;
* Scrutinising lease agreements prior to auction to ensure complete transparency without any hidden agendas.
Stenzhorn says In2assets frequently offers high profile multimillion-rand properties on auction with nationals as anchor tenants on long-term lease agreements – “such properties are the most sought-after investments in the country”.
He adds: “The In2assets public auction platform allows fair and equal opportunities to all investors who can be assured the company does not engage in selective and secretive marketing to an elite few clients.”
The company also offers professional and aggressive marketing. A comprehensive electronic and printed information pack is available on each property, simplifying the due diligence process.
He says one of the main benefits of investing in tenanted properties is that they provide immediate income and annual increases in income due to escalating rents.
Instead of purchasing already tenanted properties, investors sometimes favour vacant property.
The next In2assets commercial and industrial auction is on June 20 at the Durban Country Club.
Illovo Business Park, a multi-tenanted investment property comprising a total of 120 lettable units, situated in the Durban South precinct, will be among many lots on offer.
For information on that property and auction visit www.in2assets.com or contact Rainer Stenzhorn at email@example.com.