Assessing your prospective investment returns from the outset is crucial. Often we see investors purchasing investments because that’s what their friend is doing or having an emotional attachment to a property rather than taking an objective approach to analysing the returns.
When assessing the Return on Investment you must take into account both the immediate income stream and future capital growth, whilst giving consideration to the level of risk of the particular investment. It can be difficult to assess returns especially when purchasing property as information isn’t as readily available as the Stock Market. A good Financial Planner or Investment Advisor should work with you to assess prospective investments and guide you through estate planning to ensure they fit with your investment goals and objectives.
Furthermore, investing is not a set and forget process and must be reviewed regularly.