Why It is Important to get an Annual Review of your Strategy?

Your property investment strategy shouldn't be set and forget.

Here's why an annual review could be one of the most valuable conversations you have each year.

Buying an investment property is only one part of the property investment journey.

What happens after you buy can be just as important.

Your financial position can change. Your borrowing capacity can change. Property values can move. Interest rates and lending policies can change. Government policy can evolve. Your personal goals can change. And opportunities in different parts of the Australian property market can emerge.

Yet many property investors go years without reviewing their overall strategy.

For PWF Lifetime Members, an Annual Review provides an opportunity to step back, assess where you are today and consider what may make sense for the next stage of your property investment journey.

Property Investment Isn't a "Set and Forget" Strategy

One of the most common misconceptions about property investment is that once you purchase a property, the hard work is finished.

In reality, purchasing the property is just one step.

A successful long-term property strategy requires ongoing consideration of how your portfolio is performing, how your financial position has changed and whether your current strategy remains appropriate for your objectives.

Think of your property strategy like a roadmap.

You may have started with a particular destination in mind, but the road ahead doesn't remain unchanged. New roads open, conditions change and sometimes you need to adjust your route.

An Annual Review gives you the opportunity to check whether you're still heading in the right direction.

Why Can So Much Change In 12 Months?

Twelve months may not seem like a long time, but it can make a significant difference to an investor's position.

Consider some of the things that can change during a single year:

• Your investment may have risen in value, allowing for new opportunities

• Your available equity can change.

• Your income may increase.

• Your borrowing capacity may change.

• Interest rates can move.

• Lending policies can change.

• Rental conditions can change.

• Government policies can be introduced or amended.

• Your family or financial circumstances may change.

• New property markets can emerge as areas of interest.

Any one of these factors could potentially affect your next investment decision.

This is why reviewing your strategy regularly can be valuable.

The question isn't simply "How are my properties performing?"

It is also:

"Given where I am today, what should I be considering next?"

1. Your Financial Position May Have Changed

Your original investment strategy was based on the information available at the time.

But your financial circumstances may look very different today.

Perhaps your income has increased. Perhaps you have paid down debt. Perhaps the value of your existing property has increased and created additional equity.

Or perhaps your circumstances have changed in ways that require a more conservative approach.

An Annual Review provides an opportunity to reassess your current position rather than relying on assumptions from several years ago.

Understanding where you stand today is an important first step in determining what options may be available to you.

2. Your Property Portfolio May Have Changed

As your portfolio grows, it can become increasingly important to consider your properties collectively rather than looking at each property in isolation.

A property that made sense when you purchased it may continue to play an important role in your overall strategy.

But as your portfolio develops, you may need to consider questions such as:

• How is the portfolio performing overall?

• Is the portfolio sufficiently diversified?

• Are there opportunities to improve its structure?

• Are your properties still aligned with your long-term objectives?

• How does your current portfolio position you for your next investment?

An Annual Review provides an opportunity to take a step back and look at the bigger picture.

3. The Property Market Doesn't Stand Still

Australia's property market is not one single market.

Conditions can vary significantly between states, cities, suburbs and property types.

Supply and demand can change. Population growth can influence particular locations. Infrastructure investment can affect areas differently. Employment conditions can shift. Rental markets can tighten or soften.

This means the investment opportunities available today may not be the same as those available when you made your previous investment.

Regularly reviewing your strategy can help you remain informed about changing conditions and consider whether your investment approach remains appropriate.

4. Lending Conditions Can Affect Your Strategy

For many property investors, borrowing capacity is an important component of their investment strategy.

However, borrowing conditions aren't static.

Changes to interest rates, lending policies, income, existing debt and other financial circumstances can affect an investor's ability to borrow and therefore influence their future options.

This is another reason why waiting several years between strategy discussions can be problematic.

An Annual Review gives you an opportunity to understand your current position and consider how it may affect your future investment plans.

5. Your Personal Goals May Have Changed

Your property strategy should ultimately serve your goals.

But your goals at 35 may not be the same as your goals at 45.

You may have originally been focused on building a portfolio.

Later, your priorities may shift towards reducing debt, increasing passive income, preparing for retirement or building greater financial flexibility.

Life changes.

Your property strategy may need to change with it.

An Annual Review gives you an opportunity to discuss where you are now and whether your existing strategy continues to reflect where you want to go.

6. Don't Confuse Property Performance With Strategy Performance

A property increasing in value is obviously positive.

But one property's performance doesn't necessarily tell you whether your overall investment strategy is working effectively.

For example, you might own a property that has experienced strong capital growth, but your overall portfolio may still require consideration of factors such as debt, cash flow, diversification and your long-term objectives.

That's why an Annual Review should look beyond a simple question of:

"Has my property gone up in value?"

The more important question is:

"Is my overall strategy helping me move towards my objectives?"

What Happens During A PWF Annual Review?

An Annual Review is an opportunity to reconnect with your PWF Property Strategist and take a comprehensive look at your current position.

The conversation may include:

Your Current Portfolio

Review your existing property investments and how they fit within your broader strategy.

Your Financial Position

Consider changes to your income, equity, debt and other factors that may influence your future options.

Your Progress

Discuss how your current position compares with the objectives established for your investment strategy.

Market Conditions

Discuss relevant changes in the property market and the factors that may influence future opportunities.

Your Future Strategy

Consider whether there are opportunities or adjustments that may be appropriate for the next stage of your investment journey.

The purpose isn't necessarily to make another investment.

Sometimes the right strategy is to continue with what you're doing.

The value of an Annual Review is having the conversation and making that decision based on your current circumstances rather than simply assuming nothing has changed.

Why Waiting Can Be Costly

Investors often say:

"I'll review it when I'm ready to buy another property."

But this approach can mean waiting until an important decision is already in front of you.

By reviewing your position earlier, you may have more time to understand your options, prepare financially and make informed decisions when the right opportunity arises.

A review doesn't mean you have to buy another property.

It means understanding your position.

And sometimes, knowing that doing nothing is the right decision can be just as valuable as identifying an opportunity.

Your PWF Lifetime Membership Is An Ongoing Relationship

When you became a PWF client, your relationship with PWF didn't necessarily end when your property settled.

As a Lifetime Member, you have access to ongoing strategic support designed to help you navigate the property investment journey over the long term.

Markets change.

Your circumstances change.

Your goals change.

Your strategy should be reviewed accordingly.

The Annual Review is an important opportunity to make sure you're continuing to use the support available through your Lifetime Membership.

When Was Your Last Property Strategy Review?

If you can't remember, or it's been more than 12 months, that's probably a good indication that it's time to reconnect with your Property Strategist.

You don't need to wait until you're ready to purchase another property.

You don't need to have a major financial decision coming up.

And you don't need to assume that something is wrong with your current strategy.

The purpose of an Annual Review is simply to understand where you are today and determine whether your strategy remains appropriate for where you want to go.

Don't Wait Another 12 Months

Your property investment strategy deserves more than a "set and forget" approach.

Book your complimentary PWF Lifetime Annual Review and take the time to review your portfolio, your current position and your future strategy.

As a PWF Lifetime Member, ongoing strategic support is part of the relationship you've already invested in.

Speak with your PWF Property Strategist today and make sure your property strategy is still working towards your long-term goals.