Real estate portfolios are of great importance to real estate investors and owners of investment projects.
Being one of the most important elements of
real estate investment. Which is one of the
types of investment that most people want. As
a result of the good profits that can be
generated. The concept of real estate portfolios
has spread globally. And in Türkiye’s real estate
market in particular, due to the boom in
investment in Türkiye. As a natural reflection of
economic and tourism growth on the one hand.
On the other hand, because of the tax facilities
for real estate investment. In our article on the
real estate site “Hana”, we will provide you with
all the details about real estate portfolios, their
advantages, and the difference between their
types. Follow us.
What is a real estate portfolio?
Before addressing the different types of real
estate portfolios, let us first explain the
meaning of the term Real Estate Portfolio. It is a
set of assets that you own, consisting of real
estate such as villas, apartments, commercial
centers, buildings, and any type of
establishment on the different stages of its
creation. Such as real estate ready for
immediate housing or under construction.
What can an expert do in real estate portfolios?
An expert in real estate portfolios, he analyzes
real estate markets and predicts future price
trends. As well as providing the necessary
advice to investors, owners and tenants. His
duties also include communication with
government agencies and private institutions
concerned with real estate. A real estate
portfolio expert must have strong analytical
skills and deep knowledge of real estate
markets And economic, political and social
developments, which affect the value of real
estate. In addition to the legal and technical
knowledge necessary to perform his duties
efficiently and professionally. But the question
is, can I create a real estate investment portfolio
without being a real estate expert? Of course,
but you have to seek the advice of a real estate
company such as “Hana” company, which has
extensive experience.
What is the importance of diversifying real estate portfolios?
Diversifying real estate portfolios is important
for real estate investors, for several reasons,
including:
- Achieving investment balance: diversifying your portfolios can help achieve investment balance and mitigate potential risks. Where the investment is distributed over several real estate and different real estate categories. Which reduces the impact of market fluctuations for a single real estate investment.
- Increasing the return on investment: obtaining a variety of returns from several different properties increases the return on investment. Thus, the maximum benefit from real estate investment is achieved.
- Provide protection for the investor: the diversification of the real estate portfolio can provide greater protection for real estate investors. Thus, reducing the risks associated with real estate market fluctuations by distributing the investment to several properties.
- Achieving psychological stability: Purchasing different properties within one real estate portfolio can help achieve psychological stability for the investor. Because in this way the tension caused by the losses related to the fluctuations of the real estate market is reduced. By distributing the investment to several assets.
What is the difference between the types of real estate portfolios?
The type of real estate portfolios in Turkey
varies based on several factors related to the
property itself. It can be divided as follows:
Regular real estate investment return portfolio:
These are portfolios that aim to obtain profits
on a regular basis, either monthly or annually.
Such as buying and renting real estate in Istanbul.
Real estate growth portfolios:
These are the real estate portfolios whose aim
is to increase the market value, and this
sleeping portfolio bears a significant
percentage of risk. This is done by investing in
corporate shares, or, for example, buying real
estate on a regular basis from a large real
estate company with extensive relationships.
Mixed real estate portfolios:
It is a mixture of growth portfolios and
investment return portfolios, and the degree of
risk varies due to the diversity of real estate in
it. Some of them are non-risky, since the real
estate has a fixed profit, and thus we fulfill the
condition of preserving the basic capital in the
portfolios of regular return. And others, as we
mentioned previously, are in the real estate
growth portfolio, where our focus is on
increasing profits and the market value of the
portfolio.
Traditional real estate portfolio:
Its goal is to increase capital and search for
ideal opportunities to be able to exploit them.
Some risk must be taken.
The attacking real estate portfolio:
Its aim is to achieve a surplus in value, in order
to exploit opportunities for real estate
Cautious Conservatives:
Its purpose is to secure a balance between
income growth and real estate investment
returns. In both the short term as well as the
long term.
Speculative real estate portfolios:
They are portfolios that either make you a big
loss or a big profit. So it contains a high degree
of risk, and it requires a lot of effort And
research is not a little in order to achieve the
success you want in it.
What is the role of real estate portfolios in real estate investment?
Real estate portfolios play an important role in
real estate investment. It provides the
necessary knowledge and experience for real
estate investors to make the right and
appropriate decisions when investing in real
estate. The role of real estate portfolios in real
estate investment can also be summarized in
the following points:
Provide real estate appraisal:
Real estate appraisal is crucial in real estate
investment. Where it determines the value of
the property and allows real estate investors to
make appropriate decisions. Real estate
portfolios also provide the possibility of real
estate evaluation, as well as assistance in
determining the appropriate price for the
property.
Searching for real estate:
Real estate portfolios can also search for real
estate suitable for investment. It also provides
the necessary suggestions for real estate investors.
Management of real estate:
enables real estate portfolios to manage real
estate properties more smoothly. Such as
managing maintenance, repairs, leasing,
marketing, performance reports, taxes and
accounts.
Assistance in buying and selling:
real estate portfolios enable you to provide
support and assistance to real estate investors
in the purchase process. In addition to sales
and negotiation of deals at the best prices and
terms through the information that results from
them.
What are the advantages of real estate portfolios?
Real estate portfolios provide many advantages
to real estate investors, the most prominent of which are:
- Experience and knowledge: real estate portfolios give you the experience and knowledge necessary to analyze the real estate market. In addition to providing the necessary advice to real estate investors. This helps investors to make the right decisions and distinguish between the healthiest among them.
- Real estate evaluation: Real estate portfolios provide the possibility of real estate evaluation that helps investors determine the value of the property and obtain the desired returns.
- Search for real estate: The real estate portfolio enables you to search for suitable real estate for investment. In addition to providing the necessary suggestions to real estate investors.
- Real estate property management: Real estate portfolios provide real estate property management services, as we mentioned in the previous paragraph.
- Financial facilities: Real estate portfolios provide financial vision for real estate investors. In addition to the possibility of obtaining loans at low interest rates for owners of some types of portfolios.
- Preserving the investment: It provides the owners of real estate portfolios with care and maintenance services for the invested real estate. Which helps to preserve future returns.
In short, real estate portfolios are an investment
tool that allows investors the opportunity to
obtain investment returns from real estate.
Without the need to deal directly with real
estate. Diversification of the real estate
portfolio is also important for achieving
investment balance. And of course
psychological stability. In addition to reducing
the risks associated with real estate market
fluctuations.
Do not forget to follow us
on Facebook and Instagram, you can also
communicate with our real estate experts
directly via WhatsApp.
