A Full Range of Property Investment Products and Services
To assist clients in reaching their property investment objectives, Portfolio Management Services offers a complete range of property buying, management and advisory services. These are generally offered as an integrated property investment system, but standalone services are also available.
Clients have access to a wide range of property investment products and services including:
- Residential and commercial investment property buying
- Residential, commercial, and industrial property management
- Management of major investment property refurbishment or renovation projects
- Market analysis and insights through publication of a quarterly client newsletter, Property Outlook
- Property investment development projects including warehouse conversions
- Buying investment property and advocacy
A Disciplined Approach
Portfolio Management Services' investment property approach has three major aspects:
- Discipline in sticking to tried and tested property investment guidelines
- Independence from real estate practitioners and their traditional methods of matching buyers and sellers
- Ensuring maximised benefits for property investment client, rather than developer, vendor or estate agent
Portfolio Management Services' success in building clients' property investment wealth rests on a philosophy that makes a long-term difference:
- Discipline in sticking to the Portfolio Management Services' tried and tested property investment guidelines over a considerable period of time
- Clear independence from real estate practitioners and their traditional methods of matching buyers and sellers of residential and commercial property
- A strong focus on ensuring that the benefits of investing in property in Australia go to our clients, rather other parties like developers, vendors or estate agents
Property Selection
Portfolio Management Services filters properties based on a dispassionate assessment of investment fundamentals. Each investment property is selected on merit, in the context of over 30 years of experience in investment in residential and commercial property in Australia. This experience and daily access to the property market give investors unbiased property advice.
Purchase Timing
While there are relatively good and bad times to buy property, the difference generally is only clear in retrospect. Instead of trying to predict near term property investment performance, there is a need to understand that the benefits of property investment accrue over time. Specifically, property investment demands holding periods of at least five years, preferably 10 years plus, are advisable.
Market Factors
The balance of supply and demand ultimately controls the value of property. Appreciating this point means Portfolio Management Services acquires property in Australian locations where the long-term balance between supply and demand can be expected to work in our clients' favour.
Locality Choice
Sourcing and buying residential property for property portfolio management within 8 kilometres of major Australian city's GPO means acquisitions are made in areas with the clearest potential for investment gain. The investment gain follows both from both capital appreciation and income yield.
Capital Returns
Capital appreciation accounts for the majority of returns with property investment in Australia. Thus, residential investment property is bought with a clear expectation of long-term capital appreciation. Portfolio Management Services aims at buying investment property with rates of appreciation above that of property in general. That is, investment properties bought for clients by Portfolio Management Services are expected to outperform the market average.
Investment Property Purchase Price
Our independence and the fact that we represent buyers of residential investment property and commercial investment property, rather than sellers, in the purchase process means Portfolio Management Services is well placed to buy property at or below 'fair' market price.
Property Advisory Refurbishment and Rental Costs
Portfolio Management Services has the expertise and experience to modernise outdated properties with investment potential. This means we can confidently buy properties needing some work. More specifically, we know the level of refurbishment required to attract appropriate tenants, and understand that this is not the same as working in an owner occupier context. This is particularly the case with residential property investment.
Property Vacancy Rates
Even short-term vacancies significantly reduce yield in investment property management. Portfolio Management Services is experienced at acquiring investment property that can be readily let at fair levels of rent, to encourage long-term occupancy.
Property Portfolio Management
Thirty years building both residential and non-residential investment property portfolios means we know clients want their investment property portfolios professionally managed, with minimal involvement and no hassles.
Maintenance
Ongoing property portfolio management and maintenance are carefully monitored, as we know that associated costs directly reduce investment property returns and drain cash flows.
Investment Property Yields
Property investment in Australia is expected to earn a solid long-term yield. In particular, given a moderate level of gearing of 60%, rental income should cover the bulk of ongoing costs, including financing. In understanding what an appropriate rental yield is on a residential investment property or a commercial investment property, it is important to recognise that mortgage finance comprises a significant proportion of landlord costs. This means it is important to maintain a satisfactory margin between rental yield and mortgage rates. Thus, as interest rates rise, so too should rent.
Investment Property Gearing
An appropriate level of gearing can enhance returns without undue risk. While, therefore, assuming that properties are 60% to 70% geared, we recognise that different clients will need to vary this position in the context of their risk profile and total financial situation. It is for this reason that we recommend clients discuss gearing with their personal financial advisers. ^ Back to top |
