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 structures 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
(c)
Copyright Noreen Hynes 2007