Although it might be confronting, price inaccuracies associated with a property investment worth hundreds of thousands of dollars must be acted upon as soon as they come to your attention.

Failing to rectify investment portfolio faux pars can mean risking your financial future and while that might sound alarmist, cialis it’s the simple truth.

How do I identify an issue and then, and how do I make it right?

You need clarity when judging whether a particular property in your portfolio or even a potential deal is going sour. Remember this is all about facts and figures.

If crunching the numbers leaves your asset wanting, it’s time to count the cost, learn the lesson and move on.

Investment lemons can come in many forms, including:

  • A property you paid too much for at that’s still dragging your equity position down
  • An underperforming location that’s not kicking the necessary capital growth goals
  • An asset that doesn’t align with your overall investment objectives and strategy

The longer you hold onto this type of under-achiever in the property investment game, the more damage you do to the overall health and wellbeing of your retirement fund

Facing facts

Investment grade property should double in value every eight to ten years, so it can take time to recognise a property that isn’t generating returns.  Once you have determined this then action should be taken as soon as possible.

As long as you continue to hold the non performing investment you’re at risk of sacrificing even more money through lost:

  1. Opportunity – You need access to equity as an investor in order to maximise the full financial potential of your portfolio. Consider a $500,000 property that attracts 5 per cent growth per annum, compared to one that realises 8 per cent. The difference over 20 years is $890,000 worth of equity, which could give you enough borrowing capacity over that time to hold at least another two to three high growth assets in your nest egg.

 

  1. Time – The more time you have up your investment sleeve, the more you reduce your risk exposure as an investor and augment your returns. Think about the person who has 30 years to build sufficient wealth with property. The investor who only has ten years before retiring really has no room for error.

If you find it difficult to critically evaluate your property investments, seek independent guidance from a trusted professional advisor who understands what you’re working to achieve.

Source: http://propertyupdate.com.au

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