Portfolio review and management is the critical step that takes you from being a mum and dad investor of one investment property, to a true property investor with a multiple property portfolio and wealth creation.
Initially I like to do a quick check in and review within 45 days of the settlement of the property, I will check that your mortgage payments are coming out correctly, the right accounts have been set up, that you have internet banking, you have all your login in details and all your passwords. Also, I like to see that the property is tenanted and that the rental incomes are coming in and being paid to the right accounts. I know…. small things; but it is about checking and making sure that it is all working for you.
Then every 6 to 12 months you should be having a full review of your property portfolio. Knowing where your debt equity position is, have your goals changed, do you need to review your current rental of the properties and increase the rent if necessary. Have you built up some capital growth and now you are in a position to tap that and purchase another property? Have you been paying down your owner occupied debt? Do we need to sell the poorer performing properties to pay down your owner occupied debt – what are the tax implications (you will need the help and advice of an accountant for this).
It is really great to be able to see your portfolio grow and know exactly what your personal balance sheet looks like (accountant terminology for Assets, Liabilities and equity) It is important to keep your balance sheet updated and know where you stand across the board. It’s only when you keep on top of these things that you can begin to grow your portfolio and constantly be on the look out for your next property purchase.
Keep an eye out for our coming e-book on The 7 Steps to becoming a Successful Property Investor. A downloadable guide complete with check lists and helpful hints and tips.
Are you looking to start your property investment journey? Do you need to talk to someone, crunch some numbers… bounce some ideas? Chris is here any time for an informal chat on your situation, give you some guide lines and let you know your capabilities, if your considering a future in creating wealth through property; then call Chris today! 0434 449 455