Hello and welcome to the Someplace Else Ireland Blog.
This article discusses property portfolios.
A portfolio enables you to:
- Maximise profits
- Minimise risk & increase potential
- Generate cash-flow and income
The aim of putting together a property portfolio is to make your money work the hardest it possibly can for you, in order to maximise the return on your investment. Why buy one property for €75,000 cash when you can buy several with exactly the same amount of money by obtaining hassle free financing, where rental income covers all costs, and the effects of capital growth are multiplied?
Two of the main reasons for investing in property in the emerging markets are low prices and high capital growth potential. The fact that financing is becoming more readily available means that your money can go much further. Whether you are looking to invest €35,000 or €8 million, we usually recommend spreading your investment across a portfolio of properties in different countries. Having a portfolio of properties also means that you can be much more versatile with your money; if your cash flow situation changes it is much easier to sell one of the smaller properties in your portfolio as opposed to selling your one large investment property.
Important factors to consider
The idea behind our portfolios is that they can flexible and fully tailored to suit your investment requirements. Before looking at investing in a portfolio of properties you should first think about several aspects:
Budget – how much do you want to invest? Budget is the first factor to consider, and many people are surprised to hear that investing in the emerging markets can start from under €12,000, and with €25,000 to €30,000 it is possible to invest in several properties in a number of countries.
Timescales – how long do you want your money invested for? How long are you prepared to have your money tied up for? If you know that within a certain period of time you will need to liquidate any investments that you will make, not all countries will be suitable for you. Some areas are more long term investments, for example, if you want to realise your investment within 3 years, then areas such as Romania and Argentina will probably be better than Berlin or Montenegro.
Income – do you want income or just capital growth? Are you able to invest the money you have and forget about it, or do you need to get some form of monthly or annual income from it? You may have borrowed money from a property in Ireland to finance you overseas investments, in which case you may need to be able to generate some monthly revenue to help cover your Irish mortgage. Alternatively you may just want to supplement your current income from your investment properties, or perhaps even hope to be able to live off your property investments entirely, which is by all means possible.
Risk factor – how risk averse are you? All of the countries that we deal with are emerging markets and so come with some inherent investment risks. However, if there were no risks at all then everybody would be buying there and there would not be such huge growth potential. It can often be the case that the highest risk areas generate the highest returns, but it is important to get a balance and spread your investment, no matter how convinced you may be about a certain area or development.
Hope this gives you some food for thought. All comments are welcome.
Kind Regards
Colin Murphy
Director
Someplace Else Ireland Ltd
This article discusses property portfolios.
A portfolio enables you to:
- Maximise profits
- Minimise risk & increase potential
- Generate cash-flow and income
The aim of putting together a property portfolio is to make your money work the hardest it possibly can for you, in order to maximise the return on your investment. Why buy one property for €75,000 cash when you can buy several with exactly the same amount of money by obtaining hassle free financing, where rental income covers all costs, and the effects of capital growth are multiplied?
Two of the main reasons for investing in property in the emerging markets are low prices and high capital growth potential. The fact that financing is becoming more readily available means that your money can go much further. Whether you are looking to invest €35,000 or €8 million, we usually recommend spreading your investment across a portfolio of properties in different countries. Having a portfolio of properties also means that you can be much more versatile with your money; if your cash flow situation changes it is much easier to sell one of the smaller properties in your portfolio as opposed to selling your one large investment property.
Important factors to consider
The idea behind our portfolios is that they can flexible and fully tailored to suit your investment requirements. Before looking at investing in a portfolio of properties you should first think about several aspects:
Budget – how much do you want to invest? Budget is the first factor to consider, and many people are surprised to hear that investing in the emerging markets can start from under €12,000, and with €25,000 to €30,000 it is possible to invest in several properties in a number of countries.
Timescales – how long do you want your money invested for? How long are you prepared to have your money tied up for? If you know that within a certain period of time you will need to liquidate any investments that you will make, not all countries will be suitable for you. Some areas are more long term investments, for example, if you want to realise your investment within 3 years, then areas such as Romania and Argentina will probably be better than Berlin or Montenegro.
Income – do you want income or just capital growth? Are you able to invest the money you have and forget about it, or do you need to get some form of monthly or annual income from it? You may have borrowed money from a property in Ireland to finance you overseas investments, in which case you may need to be able to generate some monthly revenue to help cover your Irish mortgage. Alternatively you may just want to supplement your current income from your investment properties, or perhaps even hope to be able to live off your property investments entirely, which is by all means possible.
Risk factor – how risk averse are you? All of the countries that we deal with are emerging markets and so come with some inherent investment risks. However, if there were no risks at all then everybody would be buying there and there would not be such huge growth potential. It can often be the case that the highest risk areas generate the highest returns, but it is important to get a balance and spread your investment, no matter how convinced you may be about a certain area or development.
Hope this gives you some food for thought. All comments are welcome.
Kind Regards
Colin Murphy
Director
Someplace Else Ireland Ltd
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