STRATEGIES
Optimise on your returns
The golden rules of residential property investment
I
n good times and bad, investment in real estate has
proven difficult to beat on almost any measure.
While world stock markets have had a good run,
the fickle nature of excessively high prices: earnings
ratio has brought a nervousness which for many is
difficult to live with. Equally, gold, reliant largely
for its success on bad news, has been erratic in its
performance. Without detracting from the need
for a balanced portfolio by geography and asset
class, long term investors in quality real estate have
traditionally been well rewarded.
Returns on residential property have two elements,
a capital growth portion which over the years has
comfortably outstripped inflation and, for investors
rather than owner occupiers, a rental component
which normally is also inflation proof.
However to optimise one’s return there are several
‘golden rules’ which are worth bearing in mind.
10
Residential Handbook 2014
Whilst success stor Y\