Every business owner asks themselves the same question from time to time, and for property investors the question is the same: How are my property investments performing? But do you make the time to actually sit down and conduct a property portfolio review? January is actually a great time to go through the process. Tax returns are looming for self assessment. By the end of March capital gains tax, tax reliefs and all of the other accounting possibilities close for this year.
There are a wealth of different options from free to paid for portfolio reviews. Some focus on buy to let property, occupancy, costs and management of tenants. Other reviews look at only the financials like house prices, rental income, and mortgage interest.
Any review will provide a wealth of information. What you choose to review depends very much on your personal goals for your income and lifestyle.
Property Portfolio Review: the year ahead
Does your business have clear goals that are achievable, measurable, and realistic for your business? Have you achieved your short term goals, and do they feed into medium and longer term goals? Measuring your performance against your goals will help you to understand whether your goals are realistic or not. They will give you an overview of your performance and assist with forecasting performance for the year ahead.
Every good business should have a good business plan. And a property portfolio is a business, whether you have one property or twenty. So a review of your business plan to stress test performance vs your metrics should be a regular activity. But a January review can set the scene for the year ahead and put focus into your business.
Understand the most advantageous business structure and put it in place. Is it the most efficient arrangement that you could have? Could you improve your debt position? Clarify your financial position. Or are your rental yields suffering thanks to high costs or interest rates?
Professional advice could help you to consolidate debt, reorganise finance and put more efficient business structures in place. Not to mention other areas of business like continuity, mortgage protection and agent fees. Consolidating could also include your power team of advisers and experts around you. Are they the very best people, or are there new opportunities to bring in improved or new advice?
For assistance with mortgage and protection contact our sister company Liddle Perrett
For information about estate planning for business contact our sister company Will Protect
With the right business structure in place you could mitigate some exposure to taxation. Are you a higher rate taxpayer? Could you reduce your personal tax burden by incorporating your business?
And if you’re contemplating selling properties have you considered the capital gains tax implications? Expertise from a specialist in this field could help you enjoy more of your profit and reduce your tax burden.
In the end, your business is there to help you achieve your personal and financial objectives. So continued growth is critical, especially as inflation is rising, to ensure that you can continue to achieve those goals. With your goals, planning, and tax planning in place, you can look to growth. That could mean maximising rental income, profitability by a combination of reducing costs and maximising your income. A comprehensive review will provide you with the information that you need to put an effective growth plan in place.
You could be planning to expand your property portfolio. Or planning to adjust the types of properties that you have to increase rental yield. You could be exploring other investment opportunities like loan notes.
So what are the 5 good reasons to review your property portfolio?
We’ve talked about those reasons already, but in summary;
- A review will help you sharpen up your goals.Your business will have focus and direction to help you plan. So you will achieve your personal goals
- A review will help you plan properly for the future. Simple!
- Understanding how your business works as part of a review will benefit you. It will allow you to see where you can improve and increase productivity, identify opportunities and work smarter, not harder.
- With the right knowledge you may be able to mitigate your exposure to taxation.
- A review will identify everything that you need to know to plan for growth. That means that you are working towards a secure financial future.
The Hawkhurst Invest Property Portfolio Review
Unique in the marketplace, our Property portfolio Review doesn’t just look at a narrow area of your business. We take a holistic approach to your review, and examine key areas that will affect your decision making and business performance.
These areas are:
- Cashflow Forecasting
- Goal & Outcome Review including DISC Profile
- Tax Review
- Individual Property Review
- Area Brochure for each investment property
- Action Planning
During the review, we’ll gather information about you and your business, and run through a series of meetings and activities that include the use of progressive cashflow forecasting practices and DiSC profiling. We will build a picture of your business and the way that you are likely to manage risk. Working with you we’ll develop a bespoke action plan that will help you deliver your business objectives and personal goals.
Detailed information about our Property Portfolio Review can be requested here
Read our guide to Growing your Investment Portfolio