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Showing posts with label compare the Property Investment Portfolio. Show all posts
Showing posts with label compare the Property Investment Portfolio. Show all posts

Tuesday, 15 July 2014

How to compare the Property Investment Portfolio

Nowadays, property investor tend to compare how many properties they had in their portfolio, e.g, if A has 10 properties, total loan is $1.5M and Compare to B has 4 properties also with a total loan of $1.5M. Are both of them are the same?

It is a tough questions to answer, it has to depends on what are they comparing too? Just purely number of properties? Comparing the quantities or qualities?

Look at the 6 investors portfolio below:


Investor # Property Loan Size Cash Flow Networth
A 10 $1M $10000 $1.3M
B 5 $500K $5000 $650K
C 4 $750K $5500 $1.0M
D 3 $1M $1000 $2.0M
E 10 $2.1M $2000 $1.5M
F 7 $2.8M $500 $4.0M

Which one would you prefer? Obviously if is very hard to choose from right?
Would you prefer investor A or Investor F?

Is there any different from Investor A Vs Investor B?
Which one is the riskiest investor?
Which investor has the most sustainability portfolio?

If someone just comparing the number of property, Investor A and Investor E has the same number of properties which is 10. Investor E has higher loan size and also higher networth. But the Cash flow for Investor E is lower.

As such, if someone just compare the number of properties own, is it good enough?