Investment Strategy

Every property investment should have a clear goal, e.g.

  • Investment
    • Attractiveness of the property investment?
      • Emotional buying decision?
      • Portfolio-based purchase decision?
    • Scope of investment?
      • Individual investment as long-term aim?
      • Multi-property strategy (portfolio theory)?
    • Risk reduction by investing in several properties?
      • Property diversification
        • Country
        • Location
        • Property risks
        • Tenant risks
        • etc.
      • Reliance on financial options
      • Reliance on the organisation or management resources
      •  Risk awareness when opportunities are limited
      • Risk monitoring
  • Principal sum
    • Equity capital
    • Borrowed capital
    • Borrowed capital amortisation / refinancing from property returns?
  • Life cycle of the investment property (presumably renovation date or date of a replacement newbuild)
  • Duration of investment (years or indefinite)
    • Holding period of the property (due to e.g. degressive land tax rates)
  • Minimum yield
    • Pre-tax rate of return
    • Yield after (land) taxes
  • Investment control
    • Investment analysis
    • Controlling
  • Exit requirements
    • Exit strategy

Print / Share: