Investment Philosophy

Dec 4, 2013 | United Global Capital

At United Global Capital we have our own proprietary investment philosophy which we use to consistently guide us to make the most appropriate investment recommendations to our clients.

Direct property ownership offers a number of significant benefits to investors including:

  • The ability to benefit from the appreciation in value of your property.
  • The ability to benefit from the income that property produces from renting that property to tenants.
  • The ability to use the equity in your home or investment property as collateral for borrowings to support leveraged investment to enhance returns.
  • Tax benefits including deductability of depreciation, interest and maintenance costs.
  • The ability to enhance and extract value through renovations, developments and improvements.

Our approach to property investment is influenced heavily by our overriding and guiding investment belief being that each investment we recommend should provide immediate, direct and easily identifiable benefits for owning that investment. If it doesn’t, then we do not consider this opportunity as an investment. This belief has heavily influenced the development of our financial markets investment strategy and it has the same influence on our approach to selecting direct property investment opportunities.

At United Global Capital, we DO NOT subscribe to the notion that property prices double every 7 to 10 years as portrayed by many advocates of property investment. To suggest so ignorantly or deceptively conveys that there weren’t easily identifiable and unsustainable drivers of these returns. Influences such as government policy, financial market deregulation, unsound fiat monetary policy, financial market innovation and the coming of age of the largest generation (the baby boomers) combined together at a time when private debt grew from extremely low levels to create huge credit, property and equity market super cycles.

Today, the easy money has already been made. But that doesn’t mean that the opportunity to make money from real estate is over. Far from it in fact. It just means that you have to be much more diligent in the opportunities you chose to invest in.

Direct property investment should be an integral component of a well diversified wealth accumulation or wealth management strategy. You just need to be much smarter about how you go about it.

Our property investment approach focuses heavily on the cash returns each investment generates and the sustainability and growth potential of these free cash flow returns going forward. By doing so we ensure that you reduce the risks surrounding your ability to meet you financial commitments and increase the odds that the value of your investments will grow at above average rates of growth into the future.

 

<a href="https://ugc.net.au/author/joel/" target="_self">Joel Hewish</a>

Joel Hewish

Joel is the founder and CEO of UGC. He is a licensed financial advisor with 15 years experience assisting clients grow, manage and protect their wealth.

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