Investing in Property
We believe selected, correctly researched direct property is an effective asset in our clients’ investment portfolios.
Direct property can reduce volatility in your investment portfolio and provide a range of benefits:
- Capital growth
- Good yield
- Taxation efficiency
Direct property is a store-of-wealth asset. It is less likely to demonstrate the level of volatility than the equities market (particularly in the last seven years!).
Direct property, acquired using an effective research process, will assist you in building a pool of income-producing assets to achieve financial independence.
A research based process should be applied to the selection of a direct property asset. That process includes both macro (big picture) factors and micro (property specific) factors.
The macro-economic drivers that will ultimately determine the success of a direct property investment include:
- Economics and employment
- Population growth and demographics
- Infra-structure spending
- Supply and demand
- Household incomes
The micro-economic drivers that will ultimately determine the success of a property investment include:
- Value
- Amenities
- Rental income
- Transport
- Quality
- Design
Your individual property selection should be made after these key indicators have been considered and the selected asset satisfies these key tests.
