Establishing Your Own Investment Criteria
This is an excerpt from Chapter 4, ‘Establishing Your Own Investment Criteria’, of Frazer’s upcoming book, The Alternative Guide To Property Investment. You can register your interest in pre-ordering the book by clicking on the button at the bottom of this post.
We held a dinner for our top-20 investors recently and I think it’s fair to say that just about everybody had different reasons for investing and slightly different criteria for choosing what to invest in.
Before investing any money, you need to consider what you want to achieve. Do you want to sit back and let your investment grow in value (e.g. stamps or wine or a pension fund, if you still think that’s a good idea) or do you want to generate an income (e.g. shares or property)?
Or perhaps a mix of the two?
Do you solely want to provide for your retirement and reinvest any income generated or do you need to earn an immediate income from your investments?
Are you prepared to risk all your capital on the same sort of investment or do you want to make some ultra-safe investments and speculate with a certain portion of your money on riskier but potentially more lucrative investments?
These are just a few of the questions you should ask yourself as the answers will help formulate your own investment criteria. If you have decided that you want to invest some of your capital into property, then the two most significant decisions you need to make are whether you want the emphasis to be on capital growth or cash flow and whether you want to make commercial or residential property investments.
To read more about establishing your own investment criteria, you can click below to register your interest in the book. Fill in your details, and once the book is released, we will send you more information.