My financial advisor says my investment property can’t be part of my portfolio


investment property as part of a portfolio

There has long since been a rivalry between many financial advisors and real estate agents. The reason for this is pretty obvious; they effectively sell products that are in direct competition with each other so both are going to claim that theirs is the best. Of course, it does depend on your circumstances, but in reality the best approach is to have a diversified portfolio so a combination is usually in the best interests of everyone.

The comment that it: “can’t be part of my portfolio” unless they are talking about a portfolio bond or as part of a pension such as a QROPS is incorrect. Your investment portfolio can contain anything from stamps to stocks, from pottery to property – the choice is yours, it is YOUR money, and the only restriction is the investment “wrapper” that it could be included in. A quality financial advisor will recognise this and will work accordingly with this.

The correct property investment is something that is suitable for most people’s portfolio as it is something that you physically see and feel. This should not be mistaken for some property “funds” that are sold on stock exchanges and are issued with something know as a an ISIN code. With a property fund you only own a percentage of certain properties meaning that you never have complete ownership nor will you be likely have much liquidity. The returns on these funds in no way compensate you for these issues and it is far better to own your investment property.

There are many excellent investment properties around the world that will realistically pay yields of between 5-10% but some of these require you to fully manage the property yourself and that includes finding suitable tenants. Alternative options are offered by groups such as the New Nordic Group in Thailand. They guarantee to pay you 10% p.a. which is paid into your bank account on a monthly basis regardless of if your property is rented or not – giving added reassurance. They also have a proven track record by which they have paid all liabilities on time and in full on every occasion over the last decade.

Although this investment cannot be included in a portfolio bond or QROPS it CAN be included in your own personal portfolio and the income generated CAN be included as your income to satisfy Thai retirement visa requirements. The 10% return for a low to medium risk investment over periods of 5-20 years will also be recognised by a quality financial advisor as being a sound and solid investment. As with other types investment it should form a percentage of your overall investment rather than being your sole investment.