Myself and Joni Kikil, our portfolio manager have sat down with around 100 investors over the last 6 weeks, and a common theme throughout has been investors not being sure what returns on their investment they are achieving, and therefore their ideas on what properties are performing best are often not accurate.
By looking at many varied portfolios it is amazing to see all the different strategies and performances of different portfolios.
What return would I be looking for across the board? I would be looking for a minimum of 30% returns per annum on investment ie my equity to increase by a minimum of 30% per annum. Read the rest of this entry »
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How do you know if property investing will work for you? If you have a keen interest in real estate and would like to gain financial freedom through passive income … you have found the most suitable vehicle to a life of grown-up Monopoly! Did you always enjoy playing Monopoly as a kid and later as a grown-up? Does not matter how many times you were beaten, bankrupt or even stealing money from the ‘bank’, you always came back for more. Maybe this time you will acquire the choice properties, landing every unfortunate player on your hotels - everything decided by the roll of the dice.
Understanding the Opportunity Cost of any decision you make is critical to ensure you make the best choices to maximise your profits, and ultimately your long term earnings. While most investors have got involved in property investing because they understand the opportunities to make money through leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost and therefore do not maximise their profits.