A diversified portfolio doesn’t mean only owning stocks and market-based investments. What an investor is looking for when they discuss diversification is a strategy to maximise growth and limit loss. What investments are there outside the market? Adding property-based investments can bring lifetime value.
A diversified real estate portfolio
Your real estate portfolio can be diversified in the same way as your securities, by investing in different types of properties. There are many options on the market today from holiday rentals, house-flipping, commercial properties, and large residential projects, which is why an estate agent can be very helpful to understand what rate of return each could provide. There are also other options such as Real Estate Investment Trusts (REITs) which offer common shares to finance real estate. You want your investments to pay off in a way that suits you, whether that is over the short term or long term.
How to find opportunities
A real estate agent will be your best guide to find opportunities to invest in property. As professionals with their finger on the pulse of the property market, they will have developed a deep understanding of this market. An estate agent will be able to guide you towards the right kind of property investment that can get you the return you’re looking for over the period you require.
Determining Strategy Within your Property Portfolio
When looking for long term value, such as investing in property for your children, you might not necessarily need to get a quick return on this investment. Rather, you are providing for offspring and setting them up for a successful future. This could be in the form of a residential or an investment property.
If you are looking for short term returns then you may need something different. Some investors develop a knack for identifying undervalued properties, or properties where the value can be significantly increased through conversion, and working on these properties in order to re-sell them in the short term and move on to the next project. Sometimes called house-flipping, this requires significant market knowledge and project management skills.
A Dependable Return: Buy-To-Let Property
With the development of the sharing economy, property investment has become more accessible. Those looking to invest their capital and make a steady return are opting for a buy-to-let strategy. An estate agent can guide the buyer towards the best location and type of property for this, depending on their budget. Sometimes a property will require some work or possibly furnishing before it’s ready for tenants. Again, an estate agent can help with pricing and any legal requirements, while also bringing the property to the rental market.
The best kind of investment is a passive one – bringing in a return with minimal work. Get in touch with us to discuss your options.