Finance Management

The direct property investor cannot avoid using finance management or financial modelling either:

  • Parameter analysis
    • Property market appraisal
    • Planning operating costs
      • Apportionment of service charges
      • Maintenance (reconditioning, repair, renovation)
    • Rent planning
      • ACTUAL rents
      • TARGET rents
      • Higher yields
        • Rent increase
      • Reduced yields
        • Vacancy rate
        • Rent reduction
    • Investment planning (change, adaptation, conversion, extension)
    • Portfolio sales planning
    • Acquisition financing / planning
    • Exit planning
  • Leverage effects
  • Financial restructuring
    • Change to the financing period
      • Short > long or vice versa
    • Change to interest rate basis
      • Variable mortgage > fixed-rate mortgage
      • Variable mortgage > LIBOR mortgage
      • Fixed-rate mortgage > LIBOR mortgage
      • Combinations
    • Bank financing > private equity and vice versa
    • Traditional financing > securitisation
    • and so on

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