Case Study - Property Report
The Client
A client with an established property portfolio engaged our services to analyse a property within her portfolio that was causing her some concern.
The Situation
Whilst the client was an experienced investor, she had purchased a property that wasn't performing to expectation and recognised the value in outsourcing analysis of the property performance to an experienced Property Investment Advisor. The client wanted to continue to grow her property portfolio, but this property had in fact performed so poorly that she found herself in a negative equity situation after a period of having owned the property for 3 years. She was uncertain as to what to do with the property moving forward, as she had no factual information on which to base a decision, to enable her to take those next steps.
The Outcome
After analysing the property details and taking into account the macro and micro economic indicators that influence property growth, a report was drafted and provided to the client. Taken into consideration and specified within the report were local factors including employment and economic growth, population and demographic changes, infrastructure, government spending and supply and demand factors.
The client was provided with two options – the first being the option of keeping the property and what the implications of that were in relation to the opportunity for ongoing capital growth and yield expectations.
The second was the option of selling the property and taking into account the approximate selling costs, reallocation of the loan into a stronger performing property, the entry costs to that property and the time it would take to recoup costs and estimated capital loss as a result of liquidating the poorly performing property. More importantly, there was a clear explanation of the time it would take to break even and then be back in a positive equity situation within her overall portfolio if she chose to implement this option. The client now had factual information on which to base her decision on what to do with this property that was causing her so much distress, so that she could comfortably take action as a result of being fully informed.
Client Testimonial
My introduction into to property investment was through developers, who I now realise had a lot to gain from me investing with them. In the past I have been presented with a range of “researched information” with all the promised projections, benefits and advice which is provided by people who will benefit in some way through commissions or referral fees. It was great to discover Property Mavens who for an upfront fee, I know are working for me and that the advice given is not based on commissions or referral fees from developers or agents.
The Property Portfolio Report supplied by Property Mavens has enabled me to take the guess work out of how my property will perform into the future based on the robust investigation into the area and potential for growth. It has also enabled me to make an informed decision about the future of my current properties and the implications going forward on how to advance my portfolio. The two best features of the Property Portfolio Report were the professional, detailed research report that supported the advice and provided options and implications for choosing such options. I feel the report was excellent and value for money. I highly recommend that anyone with an existing property portfolio, who wants to know exactly how their property is performing and what opportunity there is for future growth, should invest in a Property Portfolio Report from Property Mavens.
J Andrews –amateur property investor!!
