When it comes to investing, it really is about understanding the numbers and managing the emotion.
What we look for when selecting property for investment
The Role of Direct Property in an Investor’s Portfolio
We believe investments clearly should only be selected to become part of a client’s portfolio based upon clear investment principals including:
- the level of expected return
- the degree of risk and volatility
- the extent over time, to which the investment returns move up and down in the opposite direction to the remainder of the portfolio (also referred to as portfolio negative correlation)
- tax position
- capital growth outlook
- rental demographic suitability
- government infrastructure ie: transport hubs, road and rail upgrades & master plan integration, health care, permanent infrastructure ie: port facilities
- the required effect upon a family financial plan reflecting the client’s needs and expectations
- emergency and expected exit strategy
- protective plans to protect the income of the investor (and hence their tax position)
- estate planning to ensure the significant values involved are including in a persons estate plan.
Technical speak: Investments should be selected for their contribution to the risk and return profile of an investor’s overall investment portfolio, or in technical terms, the risk-adjusted return of a portfolio.