Well the festive season is over and it is time for everyone to begrudgingly return to work. One thing I have always been good at is making New Years resolutions I never had any expectations of keeping: Go to the gym, eat healthier, get a better job and yet barely a week into January I would be scoffing back pies and letting my gym membership go to waste.
This year though was different. With 2012 being my first year working with mentors, who have helped me to understand what it is exactly I am looking for in my property portfolio’s and being taught how to manage a portfolio properly, I eagerly sat down on boxing day and wrote out a two page list, not of resolutions but of goals and expectations of what I am expecting from my portfolio in the coming year.
One of the most important things to remember is that when it comes to having your money work for you (instead of you working for your money) is that your money should be earning the best return possible. Therefore it is very important that you monitor the performance of each property throughout the year and act accordingly if one if not achieving the desired return. In essence each property becomes an employee in your business. If an employee was not performing you have two options: to fix the problem or to fire them and the same is exactly true in property. If you have set your goals and one of your properties is failing to meet that goal then fire the property and put your money into another that will perform as required.
So with that in mind, don’t bother making another failed resolution to go to the gym more often, but sit down and plan out what you expect from each property and what you are aiming for from your portfolio as a whole for the year of 2013. Use realistic figures and set definite goals (How many properties do you want to buy, how much equity are you going to make, how much total profit, how much is each property going to appreciate by etc)and remember to monitor them to ensure each property is doing its bit to reach your goals.