Things to know Before Buying Investment Property

You’ve likely heard stories of people who’ve built wealth through property—and it’s true, real estate can be an incredibly rewarding investment. But like any business venture, it comes with risks. If you're considering buying your first investment property, taking informed and calculated steps can make the difference between long-term success and costly missteps.

Understand What You’re Getting Into

Real estate investment requires a significant upfront capital outlay. That’s why it's essential to plan wisely and conduct thorough due diligence before committing your hard-earned money. Unlike buying a home to live in, investment properties are purchased with profitability in mind, so your decision must be driven by return on investment, not emotion.

1. Types of Investment Properties

Start by determining the kind of property that aligns with your investment goals, budget, and capacity to manage it. Each type comes with different requirements and risk profiles:

• Residential Homes and Apartments: Popular for long-term rentals and capital appreciation.
• Commercial Office & Retail Space: Offers potentially higher returns but requires more active management.
• Industrial & Warehousing: In demand due to e-commerce and logistics expansion.
• Tourism Properties: Hotels, lodges, and Airbnb units work well in areas like Victoria Falls or Kariba.
• Specialized Real Estate: Includes student housing, medical offices, or religious spaces.

For first-time investors, it’s generally safer to start in the low- to mid-price range, where demand is steadier and risks are more manageable.

2. Research the Location and Market

Location is everything in real estate. Your property’s profitability will largely depend on who you're renting or selling to and what they value. Key considerations include:

• Rental yields and resale potential
• Security, infrastructure, and public transport
• Proximity to amenities such as schools, shops, and hospitals

Hot investment zones in Zimbabwe include:

• Pomona, Marlborough, Greendale (Harare) – Benefit from regeneration and Harare Drive access.
• Bindura, Chinhoyi, Bulawayo – Ideal for student housing due to proximity to universities.
• Hwange, Kariba, Nyanga, Victoria Falls – Excellent for tourism-related investments.

3. Calculate Your Expenses and ROI

Before buying, add up all your current resources and evaluate how much you can borrow. Factor in renovation and furnishing costs, then assess expected rental income or resale value.

Here’s what to include:

• Purchase price
• Renovation and repair costs
• Property taxes, rates, and levies
• Insurance, utilities, and maintenance
• Vacancy periods

From this, estimate your net profit or rental yield that’s your return on investment (ROI). Aim for realistic targets, especially in your first year.

4. Know the Tax Implications

Property ownership comes with tax responsibilities. Be sure to understand:

• Capital Gains Tax – Payable when you sell.
• Municipal Rates & Levies – Charged monthly or quarterly.
• Income Tax on Rentals – If you rent out your property.

Pro tip: Consult your estate agent or legal advisor to help you calculate these costs before you buy. Unplanned taxes can eat into your profits if overlooked.

5. Decide on Management: DIY or Hire a Professional?

Do you want to personally manage your property handling repairs, collecting rent, dealing with tenants? Or would you rather outsource it to a property manager?

A good property manager can:

• Screen tenants
• Handle maintenance and repairs
• Collect rent and issue receipts
• Provide monthly reports

While it adds a cost, it can save you time, stress, and help maintain your property’s value—especially if you own multiple properties or live abroad.

Final Word: Think Long-Term and Be Strategic

Real estate can be incredibly rewarding but only if you take a disciplined, informed approach. Start small, minimize risk, and focus on cash flow and long-term value. Do your research, consult professionals, and build a team you can trust.

Buying your first investment property isn’t just about finding a good deal it’s about making smart decisions that grow your wealth for years to come.