Johnson Property Group

Maximum yield with minimum risk: finding the sweet spot

With interest rates at an historic low and little to no yield in cash, investors are faced with
the dilemma of how to get higher returns without taking on too much risk.
The stock market is increasingly becoming perceived as overinflated, so many are turning to
commercial and residential property.

Before embarking on a new financial journey, make sure you identify investments that fit
your fiscal goals and your tolerance to risk and time.
The most popular investment trajectory at the moment is understandably those looking at
commercial assets yielding upward of 5 per cent, and yields of two per cent and above for
residential assets. Be aware though that while the yield is higher, commercial assets can
have added risk.

With wide exposure to both commercial and residential property sectors, JPG spends a good
deal of time identifying assets that increase returns and grow portfolios.
There’s no room for shortcuts if you decide to go down this path.

We always advise clients to do their homework to ensure they know exactly how the investment will work, how it will generate a return and what the capital gain will be.

Other considerations for investors considering a real estate immersion include the duration
of the investment, or how long it should be held before it’s sold or reaping dividends.
What are ALL the risks involved?

Are there tax implications for such an investment?

Arethere legal or spousal considerations?
How will the investment contribute to broader
investments or a diversified portfolio?

What are the fees involved? If a lender is involved,
can you adequately service the loan?
The aim of a property investor should always be to secure both growth and positive returns.
One without the other isn’t sustainable.
My own experience has been to find that sweet spot where you can achieve both.
An experienc ed agent can help kickstart a diversified portfolio in residential then, then add
commercial assets over time. I’ve found this maximises yield and keeps risks to a minimum.