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Knowledge Section

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The world of property investment can be sometimes hard to navigate so we thought we would make life a little easier with a collection of articles and a glossary to help you decipher all that tricky investment jargon!

Knowledge Base

Investors Glossary – Here are a few of the common phrases for you to get accustomed to!

Assured Rental – On many new developments the developer will offer an assured rental period for a certain length of time. The benefit to the investor is that there is consistent income for that time and no void periods. So for example if the developers offers 8% net assured for 3 years the investor is assured that return for 3 years from date of purchase.

Emerging Markets – Emerging markets, also known as emerging economies or developing countries, are nations that are investing in more productive capacity. They are moving away from their traditional economies that have relied on agriculture and the export of raw materials.

ROI – Return on investment (ROI) is an accounting term that indicates the percentage of invested money that’s recouped after the deduction of associated costs.

Capital Appreciation – Capital appreciation is one of the two main sources of investment returns, with the others being dividend or interest income. The combination of capital appreciation with dividend or interest returns is referred to as total return. Capital appreciation can occur for many different reasons in different markets and asset classes. It can also occur with financial assets such as stocks or with real assets such as real estate (Investopedia 2018)

Leveraging – Is the use of various financial instruments or borrowed capital to increase the potential return of an investment – and it is an extremely common term on both Wall Street and Main Street when talking about the real estate market. (Investopedia 2018)

Alternative Investments – Broadly speaking, alternatives are investments in assets other than stocks, bonds and cash (commodities, for example) or investments using strategies that go beyond traditional ways of investing, such as long/short or arbitrage strategies. Because alternatives tend to behave differently than typical stock and bond investments, adding them to a portfolio may provide broader diversification, reduce risk, and enhance returns. (Blackrock 2018)

 

Here are a selection of handy guides and opinions by respected commentators in the industry.

 

Investopedia

– This is a great introduction to property investment, different models and strategies to deploy.

Vanguard

– Interested in alternative investments? Then this is a must read.

JLL

For those with a truly global outlook then check out this guide to international real estate investments.

The FT

– With the UK Student accommodation market experiencing unprecedented growth this FT report is a great introduction.

This is money

– Are you looking to build a property   portfolio? – Then this article is for you.

Bigger Pockets

– Great Article on what to look out for when focusing on Emerging Markets.

Investopedia

– The benefits and pitfalls of ‘leveraging’ in real estate.