Since 2005, Multifocus Properties & Finance has been striving to help clients invest in their own future and create sustainable wealth through real estate. To learn more about the company's approach to investing, Your Investment Property spoke with CEO Philippe Brach.
"One of the most common reasons that people call us is because they realize that their retirement pension will never be enough for their retirement"
Your Investment Property: How does Multifocus Properties & Finance work with customers to assess their finances and create goals?
Philippe Brach: Our approach is 100% based on data; that's how I run the business and how I prepare strategies for customers. It is therefore important that people understand if the real estate investment suits them before starting to talk about real estate.
The first thing we do with any new client is to analyze his personal situation and his goals. What are their circumstances, assets, liabilities and income in the broad sense? Are they employed or independent? Do they have a spouse or children? Once we have obtained this information and the relevant figures have been analyzed, the next step is to look at a long-term strategy, to define the acquisition structure, to use equity or cash for the deposit. and to structure the acquisitions. investment credit to optimize cash flow and taxation.
After all that, we can start talking about properties that suit the customer. This is covered in detail in my popular book Creating a wealth of goods in all markets.
YIP: How do you see ownership in a broader investment portfolio?
PB: One of the most common reasons people call us is because they realize that their retirement pension will never be enough for their retirement.
Most people do it at the age of half, but it's not uncommon to have people in their fifties coming in with only $ 300,000 in retirement.
Now, the investments we have easy access to, mere mortals, are stocks, properties, and cash. You can think of cryptocurrency, gold and others, but for the most part, cash, stocks and properties are the most common options.
"You want to make sure you can cope with an unexpected economic situation that puts you in danger"
The important thing is to have a balance so as not to depend too much on one type, but one of the great strengths of the building is that it offers a particularly high leverage potential and low price volatility. Leverage is great for people looking to accelerate wealth creation (to achieve their retirement goals, for example), but it also involves increased risk. Thus, low volatility helps. The property also tends to be much more psychologically comfortable for people; they buy bricks and mortar, which are tangible.
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YIP: What are some of the main risks associated with investing in real estate and how to mitigate them?
PB: If you ask real estate investors what their biggest risk is, they will invariably say there is no tenant. And it's true, tenants pay most of your bills.
The right location solves this problem and will also generate capital growth. Locations just a short distance from the capital's central business district offer enormous opportunities for both the investor and the tenant.
"Doing nothing is a major risk in itself," says Philippe Brach on the risk / benefit ratio of investing in real estate to build wealth for retirement
But in my mind, the biggest risk is that of interest rates. This is the biggest expense by 10 and therefore has a major impact on your cash flow, especially if your debt is high. It is therefore crucial for any investor to understand the impact of a rate hike on his cash flow.
We provide our customers with 10-year forecasts to show them what is happening in a variety of economic environments. Then just create buffer zones to give them peace of mind about the future.
Last but not least, doing nothing is a major risk in itself. Since the maximum government pension for a single person is slightly less than $ 24,000 a year or $ 36,000 for a couple, this should put things in perspective for your own retirement!
In the end, you want to make sure you can deal with an unexpected economic situation that is depressing you. With the right approach, everything will be fine in the long run.
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About the Expert
To learn more about how Multifocus Properties & Finance can help you achieve your investment goals, visit www.multifocus.com.au
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