Independent Financial Life Planners Bishop's Stortford: Managing your Property portfolio

Tuesday, 23 June 2015

Managing your Property portfolio

Make sure you don’t over estimate your returns by getting good advice right from the start of setting up your property portfolio. According to a recent report by Platinum Property Partners nearly one in eight landlords fail to consider any additional costs when calculating the profitability of their property portfolio, more than half do not factor in any repair costs. Its study estimated that “ the total average cost of a buy-to-let property, including letting agent fees, maintenance, repairs, marketing fees and mortgage interest, amounted to £8,359 a year.” At Enable, we can help you make sure you have done your sums properly.

We can help landlords who may be overestimating returns to be realistic, and we may be able to help your reduce some of those costs. Platinum suggest the most accurate way to measure the performance of a buy-to-let investment is by using "return on investment" or "return on equity", these methods take into account gross profit, capital gains, and the costs of running the property – including the amount spent on refurbishment. It is also sensible to cost in "void" periods, when a property is empty between tenants. The Platinum study suggested that in any one year, up to 60pc of landlords face void periods, however, only 12pc of these take this into account when assessing returns but with careful management of your properties in Chelmsford these periods can be reduced to make sure you are getting the most from your property investments.

“The buy-to-let market is a hot ticket investment at the moment for budding landlords looking to generate an income and good level of capital growth from rental property," said Steve Bolton, founder of Platinum. "This is particularly the case now that new pension freedoms have opened the gates to alternative financial plans for retirement.” But good management of those investments is vital.

Your home could be at risk if you do not keep up the mortgage repayments.

Issued by: Enable Independent Financial Life Planners  25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339  Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.