Real Estate Matters | Your Financial Health In 2017 – Part 2

Juliet Risdon

Last week we looked at why people might want to review their investment strategy, and how to start forming investment goals.

This weeks article looks at two more steps that are important considerations for achieving those goals.

4. Be clear on the timescale – Is this a long-term or short –term investment?

When exactly do you need the money?

You may need to factor in contractual investment periods e.g. fixed term bonds for 3 or 5 years or possibly how long an investment property sale takes to complete.

When will you need the money to be available?

5. Income or capital investment?

Do you want a regular income or a lump sum as the end of the investment?

Further considerations are – How long do you want to tie this money up for? Will you put it in to high or low risk investments?

If you are looking to grow a lump sum over a longer period of time say two years or more, then considering the capital growth of a well-invested property would be worthwhile.

If you are considering needing a regular income, looking at rentable properties might be the way forward for you.

If you choose rental income then how much on a monthly basis do you need to make? When does the property need to start earning for you?

Property prices in Macau have dropped significantly over the past two years, and whilst there is no guarantee for the future, you should find that a good rental investment will out-perform money sitting in the bank or under the mattress so to speak.

There is certainly no magic answer when it comes to making money, if there was we would all be doing it, so taking time to consider our goals and options to make the most of what we have is always a good idea.

* Figures expressed in MOP unless otherwise stated

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