Investment Property Advisory
Portfolio Management Services expertise is in the assessment of existing property for investment potential. To assist our clients and/or their advisors in reaching their property investment objectives, Portfolio Management Services offers a complete range of property buying management and advisory services related to property management. We do not, however, advise on financial planning or investment goals. Thus the majority of our clients come to us either as a referral from a financial planner, investment advisors or accountant. After discussion with your financial advisor or a personal meeting with you we are well placed to advise the type of property investment most suited to your requirements. Click here to view our presentation
Clients and their advisors have access to a wide range of Portfolio Management Services' property investment products and services including:
- Residential investment property buying
- Commercial investment property buying
- Industrial investment property buying
- Residential, commercial, and industrial investment property management
- Management of major investment property refurbishment or renovation projects.
- Property investment development projects including warehouse conversions
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The 4 Portfolio Buying factors |
| Portfolio Management Services aims to keep the 4 residential investment property buying factors in line to improve the risk profile of the investment. These four factors are Price, Rent, Replacement Value and Growth Potential |
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Commercial Property Investment – the Opportunity |
| In Australia vacancy rates for commercial property are still below where they were in 1989 while cost of building commercial property has risen – the investment opportunity arises for existing property as demand for space gradually increases. |
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Industrial Property Investment - Longevity, Security Blue Chip Tenants |
| As warehousing and distribution channel operations replace manufacturing in traditional industrial areas, opportunities arise in the conversion or refurbishment of existing industrial properties in desirable areas with long leases and blue chip tenants. |
Investment Property Selection
Portfolio Management Services filters investment property based on a dispassionate assessment of property investment fundamentals. Each investment property is selected on merit, in the context of over 30 years' experience in investing in residential and commercial investment property in Australia. This experience and daily access to the property market give investors unbiased investment 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 5 years, preferably 10 years plus, being advisable.
Market Factors
The balance of supply and demand ultimately controls the value of investment property. Appreciating this point means Portfolio Management Services acquires investment property in locations in Australia where the long-term balance between supply and demand can be expected to work in our clients' favour.
Locality Choice
Sourcing and buying residential investment 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 property 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 property bought for clients by Portfolio Management Services is 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 investment property at or below 'fair' market price
Property Advisory, Refurbishment and Rental Costs
Portfolio Management Services has the expertise and experience to modernise outdated property with investment potential. This means we can confidently buy investment property 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 investment property.
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.
Buying Investment Property Service
Our integrated property portfolio management service does not emphasise the role of a property advocate, nor do we advertise our considerable expertise in this area. We do, however, accept assignments to search for and acquire executive homes at clients' request.
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