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Ben Kingsley Blog post by Ben Kingsley

The Four Personal Elements in Building A Property Portfolio

As a property investment advisor, I spend my days designing property investment plans from the next investment purchase to a portfolio of properties.

What I wanted to share with you today is part of that process that I go through. So when I’m sitting in front of clients, I want to talk to them about the four moving elements that make up the personal side of the property investment plan. They are these things. The income, the expenditure, the time that we have got, and the targets we’re trying to achieve.

So when we’re putting all these information together, I then need to understand what sort of – that income that I’ve got coming through and how much that’s going to grow over time because remember, I’m projecting into the future so I can plan out as we build that portfolio of properties up.

So I’ve got that income. I’ve got the expenditure and I’m trying to understand what’s essential spending as opposed to what’s living in lifestyle and discretionary spending and then I’m sort of thinking what’s your retirement target. So when would you like to retire and we’re usually talking in age there?

Then the final thing is the goals. So what is the passive income we’re trying to achieve? What is the wealth base we’re trying to get to? When you’re sitting down and you’re trying to build your own plan, consider those variables.

What’s my income going to do over time? Is there going to be an impact on that income, i.e. am I going to start a family? Am I going to change my car over? Am I going to put my children through private school? Those are the types of income and expenditure elements. Can I reduce the living and lifestyle expenditures so I can focus on achieving my end goal?

Is my time adequate enough to do what I need to do? Are my goals realistic? Once you get that marriage right, and you have a conversation with your partner or inside your household or with yourself, you’re going to get a really good understanding of the personal elements that are going to be part of your property portfolio plan. Of course we have the properties, which are going to do the heavy lifting from an asset and return perspective, and that’s a story for another day.

But these are the sort of personal elements that you need to consider when it comes to making the smart choices around investing in property. Thanks for your time.

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