While there will always be attractive investments that delivers good returns locally, diversifying your portfolio by investing in other economies is an acknowledged principle that will give you a currency hedge, safety, sustainability, wealth preservation and access to other quality investments.
We use the Internal rate of return to evaluate and compare the attractiveness of each investment against other investments. Watch this video to find our more about why we use IRR.
The value chain of how wealth is created is simple and yet none of us are taught it. There is a reason why 99% of people on this planet will not create wealth and that's because the top 1% percent are doing things differently. Watch this video to find out what some of the wealthiest people in the world are doing to grow their wealth.
IRR - The Internal Rate of Return is one of the most common indicators for understanding and comparing your returns for real estate investments.
One of the key aspects of the risk is the predictability and stability of your cash flow from rentals, now and in the future. The more uncertainty around cash flow, the higher the potential risk.
Total Holdings refers to the combined purchase value of your current investments, using the amount of your initial investment in each deal, and any cash in your account or wallet. Total Holdings is unlikely to be an accurate reflection of the actual current value of your real estate investments, as these are likely to have changed since the time you invested. When a deal reaches the end of its cycle, and the Real Estate is sold, and the money returned to you, then that deal will no longer reflect in your total holdings.
Cash on Cash Returns is a very useful indication of how much cash you can expect every year in relation to how much cash you put into the deal. It is calculated by looking at how much cash you will earn after all the expenses of a project have been paid. Cash on Cash is represented as a % of your initial cash investment. Note that Cash on Cash indicates your return before you have paid any tax – any tax that you must pay is not considered in the calculation. (Example: If you invested $100 in cash into a deal, and you receive $10 in returns from the deal each year, the Cash on Cash return will be 10%).