3 property investment strategies to build wealth in uncertain times
'The current climate of uncertainty is being felt universally, with geopolitical tensions contributing to economic volatility not just here in South Africa, but across the globe. While challenges exist, we have always seen that the South African property market shows remarkable resilience when approached with the right strategy,' says Adrian Goslett, regional director and CEO of REMAX Southern Africa.
Focus on Cash Flow–Positive Properties
'In uncertain times, liquidity and stability become paramount. Cash flow–positive properties (those that generate more rental income than their monthly expenses) can offer a steady income stream, acting as a buffer against broader financial shocks,' says Goslett.
For those who would like to put this advice into practice:
Avoid maxing out your credit. If interest rates increase, this could put you under strain.
Before making a purchase, analyse all costs, including mortgage repayments, maintenance, property management, and vacancy rates.
Use conservative estimates when calculating expected rental income to ensure the property remains cash flow positive even in downturns.
Diversify Your Portfolio Geographically
'Market conditions vary from region to region. What might be a buyer's market in one city could be a seller's market in another. Geographic diversification helps spread risk and reduces exposure to localised downturns,' says Goslett.
For those who would like to put this advice into practice:
Don't overlook secondary or emerging markets just outside city centres. They often offer better value and growth potential than saturated urban centres.
Monitor regional economic drivers such as job growth, infrastructure development, and population trends.
Adopt a Long-Term Mindset
'Property values generally appreciate over time despite short-term fluctuations. A buy-and-hold strategy enables you to ride out volatility while building equity,' says Goslett.
For those who would like to put this advice into practice:
Invest in low-maintenance properties to reduce long-term upkeep costs.
Choose locations with strong fundamentals like employment opportunities, school zones, and transport.
'Uncertain times often bring the best opportunities for those who are well-prepared. By focusing on smart, resilient property investment strategies, you can not only weather the storm but also position yourself to thrive when stability returns. Remember, the key is not to fear uncertainty but to understand how to leverage it to your financial advantage,' says Goslett.
Issued by: Kayla Ferguson
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