Building a Property Portfolio
Article Date : March , 2007
More and more property buyers
now want to buy property for investment purposes to enable them
to create wealth over time to provide for their retirement . Many buyers
have told me they are buying in an ad hoc way and need assistance in
building a portfolio in a more structured way with the proper advice
which incorporates, taxation, financing and legal.
It is critical that buyers
have these services and don't have to pay a fortune for them. Also these
service suppliers should be independent of the developers and each other.
Many companies in the market charge large fees of up to €10,000 to
allow members benefit from their advice and services on building a property
portfolio. Some give clients access to properties they source themselves
or develop for the purpose of selling to members.
We in Aquarius Properties realize
that each client is unique and requires a different kind of portfolio
and that is why we have taken a more bespoke approach to Building
a Property Portfolio. Some clients for example may have small budgets
starting off and want to build a portfolio over time, others may have
a few million and want a variety of properties in different geographical
locations Covering over 25 locations worldwide we have
thousands of properties to choose from and can cherry pick the best
properties for clients. We have a deep understanding of the international
property market and continuously research the market for new exciting
opportunities. We are totally independent of developers and can
locate the very best properties for property portfolios.
Aquarius
Properties have a set list of criteria they use when choosing properties
for the property portfolios and if properties don't meet these criteria
they don't get included in their property listings for portfolios..
Aquarius Properties have years of experience in this area and bring
this experience to the benefit of their clients when building a property
portfolio. Aquarius Properties do not charge clients for presenting
these properties to them. As a marketing company their role is to source
the best properties to present to clients. Aquarius Properties employ
professional property consultants with the right experience and knowledge
of the various markets to assist clients in choosing the right properties
for their property portfolios. Additionally their two directors are
both Chartered Accountants with a wealth of experience in property,
corporate finance, tax and general management. No other company in Ireland
can bring such a wealth of experience to the table and such a knowledge
of the global property market. Also Aquarius Properties are members
of the National Association of Estate Agents NAEA the largest representative
body for Estate Agents in the UK and Ireland.
Wrap Around Services
Aquarius Properties can recommend
top professionals who will advise clients on all aspects of purchasing
overseas property including taxation, legal and financing your property
portfolio. These professionals have experience in overseas property
and have been specifically chosen by Aquarius because of their knowledge
and experience in this market. All of the parties involved are independent
of Aquarius Properties and all the developers involved.
Due Dilligence
Aquarius Properties carry out
a due diligence on all the properties they put into their portfolios
and this gives clients peace of mind with regard to the groundwork which
has been done in advance. Additionally the independent lawyer carries
out a detailed legal due diligence for the clients ensuring all the
legal aspects of the purchase are in order.
Taxation services
It is important that when purchasing
property in different tax jurisdictions that buyers understand there
are cost implications and responsibilities and these need to be understood
up front. For example tax returns have got to be made in the country
of purchase as well as in Ireland. One also needs to understand the
implications of there being a double taxation agreement between the
country of purchase and your home country and what other taxes apply
including tax on rental income, capital gains tax and inheritance tax.
Also in some countries it is wise to set up a company and purchase through
that company and it is important to know this up front. For this reason
Aquarius recommend clients to take advice on this at the start to ensure
they purchase using the correct tax structure. Aquarius Properties recommend
a firm of Chartered Accountants who will carry out these services for
clients for an agreed fee which has been negotiated with them for Aquarius
clients.
Administration of your
Property Portfolio
It
is very important when you set up a property portfolio to check that
your rents have been lodged to your accounts regularly and that all
utility bills are paid. Also you need the accountants to liaise with
the local management company on a regular basis to ensure that all bills
are being paid such as utilities, repairs etc. Aquarius Properties recommend
that clients appoint a firm of Chartered Accountants to carry out these
services as well as the taxation services above and communicate with
them regularly on the rental situation and cash flows. It is also very
important to have funds in all your foreign bank accounts to meet mortgage
repayments and you can request the accountants to do this. You can request
your accountant to quote for an all in fee for these services.
Legal
It is important when purchasing
property no matter where in the world to obtain independent legal advice.
Legal advice covers the usual due diligence on the property, the conveyance
of the property, as well as advice on making a will. Aquarius Properties
have negotiated fees with lawyers experienced in Overseas Property but
who are based in Ireland. There is a choice of two such Lawyers in compliance
with FOPDAC rules. The advantage of using one firm of Lawyers for all
your purchases is that you only have to talk to one firm instead of
several firms.
Keeping track of your property
portfolio
We advise clients to keep records
of all their properties and document them on an excel sheet with all
the relevant information. This will enable them to assess quickly what
equity they have in their portfolio so that they can borrow more money
to invest further. By continuously using up the free equity they should
be able to build up a substantial portfolio over time. In some cases
it may be that properties are not self funding initially but in time
this situation can reverse whereby they have excess income to play with.
Risks with regard to Property
Investment
It is important that when investing
in property clients make themselves aware of the risks associated with
property investment and discuss these with their Lawyer. Property values
can increase as well as decrease and it is important to know this when
investing in property. Also in order to assess the risks of purchasing
in overseas markets it is important that clients discuss the whole purchase
process with their Lawyers in advance and make themselves comfortable
with the risks associated with each purchase. For example in many emerging
markets there are no bank guarantees for your money paid prior to completion
and it is important to understand that even though you are more likely
to make larger returns in some of these markets there is more risks
attached to purchasing property there. .
Conclusion
There is work to be done if
you want to become a property millionaire and be prepared for this.
It is very important to build your property portfolio in a structured
way over time using professionals you can trust.
Aquarius Properties run regular seminars in Ireland and the UK on
How to Build a Property Portfolio. To register for one of our seminars
or to get an individual one to one consultation call us now on +353 1 2782900
from NI or UK 08082381799 or email us to info@aquariusproperties.com ee our web site www.aquariusproperties.com
A new web site will be live
shortly and it will specifically focus on the educational side of building
a property portfolio. Despite the negative economic circumstances
people are still keen on property as a good investment option and this
won’t change. When funds become more available investors will come
back into the market. Buyers will need to be a lot wiser and that’s
where this web site will be of great assistance to them. 
(c) Copyright Noreen Hynes
2007