Finimize Live: How To Profit From Property

Finimize Live: How To Profit From Property

almost 3 years ago2 mins

Hi, it’s Community Host Helena Olivier-Guedes here. On April 22nd, 2021, I was joined by Faith Link, co-founder at Dixon Link Capital, to discuss everything investors need to know to get started with property investing. 

Here’s what we learned from the conversation: you don’t need access to huge funds to be able to invest in property. Before our event, 45% of Finimizers believed that they needed access to a mortgage or large funds. Afterwards, 90% saw that they no longer needed to have access to large funds to be able to invest in property and they could get started straight away.

Favorite quote from Faith:

“Remember that property is just another slice of your investment pie, it is just one of the many asset classes available to you.”

Top takeaways:

  • There are different ways to invest in real estate: traditional “bricks and mortar” property, real estate investment trusts (REITs), and private equity real estate funds.
  • Traditional property requires more capital, is less liquid – meaning it takes longer to sell – and its performance often moves opposite to the stock market.
  • REITs require less capital, are more liquid, and their performance generally moves with the stock market. These trusts pay out 90% of profits to investors.
  • Private equity real estate funds are a combination of traditional property and REITs. It’s more difficult to be approved to join the fund and the capital required to invest may be higher. It could be potentially more profitable but your investment may be locked in for longer compared to a REIT.

The three actions new property Investors need to take:

  • Consider how much risk you can take on and how long you want your investment to stay in the property before selling.
  • Consider the cap rate, the net Income after all expenses from the property divided by the cost of the property. This will tell you how long it will take for the property to pay for itself.
  • Make your decisions based on credible sources of information such as CCIM or WMRE.

Follow Helena Olivier-Guedes on Linkedin or find her next event featured in the Upcoming Events section of the Finimize app.

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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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