Most people are familiar with New Years Resolutions and setting goals for the new calendar year, but what about your financial goals? What about the Financial year?
Investors often lack a plan and direction with their portfolio and this is where reviewing your portfolio and setting goals and tasks for the new financial year can be important to your investment success.
Here are some of our top tips to assist with goal setting for this financial year. Firstly undertake an independent review; reviewing your portfolio is important to track the performance and returns and ensure your getting the best from your investments, but what do you need to review? My suggestion is that you need to breakdown the review of each property into several parts,
Part One, Current Value, obtain a bank valuation or market appraisal of the current value of your property to confirm if there is any equity currently available.
Part Two, Current Rental, review the rental amount and lease expiry dates to ensure you are achieving market rent and confirm when the lease is due for renewal. In addition also consider the prevailing market trends when looking to review your next move. Some rental markets have softened so perhaps an increase in rent is risky and could attract vacancy.
Part Three; Current Property Condition, review your last routine inspection from your property manager, or attend the property at the next routine inspection with your property manager to review the current condition of the property. Keeping up with maintenance and repairs can not only save you money in the long run from larger more costly repairs, but also keep tenants satisfied with the property and reduce down time should the property become vacant.
Part Four, Value Adding / Rental Improving Opportunities; keeping your property current to the changing demographics of an area is critical to its long term performance, not only to increase rental yield but also manufacturer equity and assist capital growth.
Finally Part Five, Growth Outlook, after investing in the above items you then need to consider the possible future performance of the property to ensure it still has a place in your portfolio, if growth of the asset has been nil or very slow, and the market doesn’t appear to be showing a strong growth outlook then perhaps divesting of the property to reinvest is perhaps the best option.
From here you can get a clear picture of your current situation and then plan your step next, which could be Buying, Renovating, or Selling to take your portfolio to the next level and improve its performance in the new financial year.
The team at Hot Property can assist with undertaking a portfolio review to assist with goal setting and planning, to book your appointment contact the team on 07) 3170 3760 or email firstname.lastname@example.org