Building A High Return Property Portfolio

There’s no doubting property investment’s many financial rewards, but it takes expertise to move beyond looking for a ‘nice place in a nice area’ and build a high return portfolio. A well-defined strategy is the first critical step in a process that places actual property selection last, removing subjectivity from the equation.

It’s a pathway that’s been reinforced for me recently, with new clients who’d spent 12 months trawling the real estate classifieds online and still be unable to move forward. They were referred to me at the point when they were just about ready to give up, thinking their portfolio dreams were going to end in vain.

With a goal to build a portfolio to support retirement goals, they had wasted much precious time. It’s not that they were unsure about property investment as a wealth building option: they knew the benefits for their future and were keen to reap the rewards. They were both high net worth, successful in their respective careers and standing on firm foundations, but when they got lost in the online listings it all became too much.

It’s not uncommon to see people from corporate backgrounds in this situation. They understand the importance of investing to build a strong net worth position for retirement and have the financial wherewithal to support their objectives. Time poor, they struggle to do the due diligence and research because they don’t have the resources to plan for their investments.

The solution - as it was for this particular couple and many just like them - was to call in a buyers agent. I strategised with them over their end goal which I knew could be achieved by purchasing five properties over a five year period of time. This would be achieved by selecting properties with strong capital growth projected for their first 12 months, then using increased equity to help purchase the next investment and so on.

Essential to this strategy was the all important process of property selection. This is the point at which many would-be investors get stuck, often spending months searching in vain for something they ‘like’ rather than what they actually need - and this is where they go wrong. Working with industry experts is what gives you the advantage, by gaining access to quality research providers to pinpoint those much desired areas of capital growth nationwide.

Knowing how important it is to get this stage of the process right, I use Ripehouse to highlight property hotspots using its timely data analysis to support my clients’ investment strategies. With this particular couple, it narrowed down to a property on the Gold Coast which was projected to grow in value by 15% in its first year. As is the case for many in their position, these people were decision makers and once the right property was shown to them, they leapt on board.

A further benefit to working with a buyers agent emerged at this point, when I was able to negotiate over $20k off the asking price. The savings my clients made resulted in higher cashflows than initially predicted, placing their portfolio in a strong position from the word ‘go’. They will seek valuations in 12 months’ time, then work with Ripehouse’s live data to find another property with the right criteria to fit the next step of their strategy.

As with many clients who engage a buyers agent, using a professional has helped this time poor couple move forward into a strong financial future with their targeted property portfolio. They’re on track to build long-term security in later life, with assets they can draw to make their lifestyle dreams a reality.

Editor Note: Julie has an amazing story. She has built an enviable portfolio, achieved on a single income whilst raising two children. Julie now devotes her time and attention to helping others secure their future via her business Australian Property Investment Solutions. As part of this buyers agency business, she uses best practice research tools + her expert knowledge of property and negotiation, to deliver amazing results to her clients.

Original article: http://www.apimagazine.com.au/property-investment/building-a-high-return-property-portfolio