Investment property strategy
The vast majority of people that invest in property receive no financial advice whatsoever.
Many don't even have a plan or goal in sight. Investing involves setting goals and then designing the most effective, lowest-risk strategy to achieve those goals.
Our investment property strategy generally includes:
- Understanding and setting your personal and financial goals. Why do you want to invest in property? Do you have an asset goal or income goal? How much do you need? What is your time line?
- Developing a property investment plan which fulfils your predetermined goals. This includes preparation of financial projections (how many properties, what value and when), cash flow assessment and management, complete insurance review, identifying tax and estate planning risks and opportunities, setting portfolio review targets and development of an exit strategy. This will be documented in a Statement of Advice.
- Assistance with appointing and managing the services of relevant professionals as required such as valuers, quantity surveyors (depreciation reports), buyers' agents, specialist taxation advisors, solicitors and the like.
- Reviewing the performance of your portfolio on a regular predetermined basis including taking into account any changes in personal circumstances.
If you currently hold existing investment properties, we would still undertake the above process and in addition, we would review the performance and appropriateness of your existing investment properties.
Download our 2-page financial planning test to see how well you're doing with addressing your personal financial planning needs.
Ongoing Services
We know from experience that the majority of people that invest in property do not actively review the performance of their property purchases. That is nonsensical. What is the point of investing if you don't actively manage and assess your investments?
The first step is to develop a plan to invest. However, that is useless if the plan is not implemented and its performance measured regularly. We are best placed to conduct these reviews because our assessment will not be coloured by any emotion or personal preferences. Our ongoing services can include:
- Estimating the value of each property and calculating the implied growth rate to identify any underperforming assets.
- Reviewing the performance of your property managers in terms of maintaining your property and managing your income stream.
- Comparing your actual net wealth to our financial projections to make sure we are on track.
- Assessing your actual cash flow and spending patterns.
- Reviewing your debt portfolio and structure.
- Review your risk insurance cover.
- Assess any changes in financial products, law or personal circumstances to identify any opportunities.
We would appreciate the opportunity to discuss our ongoing services in more detail.
