Property investment requires regular monitoring not only of the property market, the individual property and rental market must be monitored as well.
This is the only way to achieve (opportune) successful portfolio optimisation at the property level.
The following aspects must be scrutinised:
- Property site (location)
- Property type (use)
- Property target group orientation
- Property marketing
- Property life cycle
- Property prospects (short, medium and long-term)
Possible measures are:
- Better target group orientation
- Refurbishment (quality enhancing renovation or repair)
- Replacement newbuild, possibly with consolidation
- Portfolio turnover
Private investors that have no in-house resources would be well advised to consult external advisors in order to keep pace with developments. The costs incurred in consulting advisors should naturally be offset by a sustainable improvement in returns and risk reduction.