Top 4 reasons you need to carry out an annual portfolio review

roperty investors have been urged to conduct an annual property portfolio review to make sure they are getting the most from their property investment.

The financial services company Direct Property Network has posted a four stage procedure to ensure all portfolios are kept running like a “well-oiled machine”.


One of the most advantageous features of investing in property is the fact that it’s a direct route into further real estate investment. The equity you hold in your portfolio can be leveraged to borrow for another property, further growing this equity and continuing the cycle. By conducting an annual portfolio review, you’ll know if you’ve built up sufficient equity in one or more of your assets in order to purchase another property, and can start putting your plans into motion.


Even if your portfolio as a whole is doing well, that doesn’t mean every single property is performing to your preferred standard. One or more properties could be seeing stalled or even stagnating value growth, while others might not be delivering the same kind of rental revenue as they were before. Through an annual review, you’ll be able to identify any potential issues before they become bigger problems, and gain insight into which properties you need to sell. 


Any mortgage expert will tell you about the usefulness of re-examining your financial structuring. Refinancing a home loan to take advantage of recent interest rate cuts, for instance, can save you thousands of dollars. You can also restructure a mortgage to insulate yourself from changes in your financial circumstances, such as by splitting your home loan between a fixed and variable rate. The ultimate goal is to make sure your rental income continues to offset the expense of your own home mortgage, so incorporate this into your annual portfolio review.


No one should start building a portfolio without a cohesive property investment plan in place. This plan should be based on a concrete goal or aim that you want to achieve through investing – saving for retirement, for instance, or making enough to open and run a particular business. Your annual review will let you see if you’re still on track for meeting this goal and if not, why and how you can change course. If your goal was more tentative when you began, then this could be an opportunity to clarify it. 

No matter the reason you decide to start reviewing your portfolio on an annual basis, be sure to work with experienced professionals. Not only can they help you determine the next course of action to take, but they can also use their industry knowledge to measure and identify the true performance of your portfolio – often easier said than done.