How to set property investment portfolio goals


If you’re lucky enough to be able to start investing in a property portfolio, it’s an exciting time for you. With a solid understanding and the right property investment advice, property can be an extremely worthwhile and profitable investment allowing you to reap rewards on a regular basis. However, setting realistic and informed financial goals in relation to your property investment portfolio is crucial for achieving long term success.

Looking for quick cash?

Many people mistakenly think they can use property investments to make a lot of money very quickly. In fact, you’ll most likely achieve better results by setting your goals a little more long term. Remember that the longer you hold an investment for, the lower the levels of risk involved.

Set aside time

Property investment should be seen as either a Medium or a Long term investment. Even if you’re using it as a medium term method, this still means you should set your goals taking a time period of 4-6 years into account, with long term results expected after approximately 7 years. Anyone who has undergone the process of buying or selling a property knows that it doesn’t happen overnight. By investing in property longer term, you’ll also be able to ride out the cycles of the property market where prices inevitably fluctuate as various factors come into influence.

What to aim for

When you decide to set property investment goals, you’ll be looking to achieve a variety of things. These will include
• An increase in capital growth – depending on the market, your property should increase in value over the years
• Provision of a regular rental income (if the investment is positively geared)
• An offset to your taxable income (if negatively geared)


You and Your needs

Factoring in an estimated Return on Investment that you expect will help you to set realistic property investment goals. Think about the reasons behind your property investment portfolio – are you looking to build equity to gain rental income, or simply wanting to help your children onto the property ladder when the time comes?

Economic circumstances such as Interest Rates in the financial markets will have an effect on any investments that you make so always keep up to date and seek expert advice when necessary. If by the end of this article you are feeling bewildered, I highly recommend seeking advice. There are many local property investment experts in Adelaide like that can help you manage your investments or take over 100%.

The crucial element of getting started in property investment

property investments

So you want to be a successful real estate entrepreneur? If you’re like the majority of Australians, you’ll have a keen interest in property investment without actually ever having been part of the process. If you’re in the financial circumstances to think about investing, the chances are you’ll have read the property pages of the local and national newspapers, browsed online and spoken to friends and family. Yet what’s stopping you from making the next step?

Planning to Invest in Property is crucial

Around 1.3 million Australians own an investment property. If you’re keen to become like them, the first thing you need to do is to plan out how to achieve your goals. Work out exactly how much cash you have to invest – and remember that this should be cash you’re able to set aside without causing yourself or any dependents extreme financial stress. You’ll need to look into loans too – have all of your employment history ready and documents such as evidence of your monthly wage available.

Pre approval – The Process Begins

Find a trusted mortgage broker and gain a pre approval for your loan. Always be wary of applying for endless pre approvals through a lender as remember that they will check your credit record each time which may create red flags on your profile. Find out your credit rating and look at all of your credit and debit cards – you may want to reduce the limits on these as and when the time comes.

Watch and learn

Keep a keen eye on the property market. Learn everything you can and ensure you understand all of the basic elements of the property investment process. Watching the news and knowing what’s happening in both the Australian and global economy will help you also as this will inevitably have an impact on the prices of property and the best times to buy.

Set realistic budgets and goals

You may not be thinking about retirement or the future at the moment but property investment is generally a mid (4-6 years) or long term (7 years plus) investment so you need to think ahead when getting started here. Work out exactly what it is that you want to gain from your property investment – work backwards from where you want to be in 25 years time if this helps you.

Once you know where you want to head, it’s easier to budget in order to get there. Create a spreadsheet of all your current incoming and outgoing costs and figure out where you can cut down and which parts are essential. The sacrifices will all be worth it when you get the keys to your first property investment!