The inclusion of residential property can improve a portfolio by 9.6 per cent, new research released by property investment platform DomaCom has suggested.
In a statement yesterday, DomaCom announced the findings of recent research conducted by Atchison Consultants over a 20 year period with different asset allocations showing positive results.
The research revealed that a growth portfolio with 20 per cent to real property could be improved by up to to 9.6 per cent, a balanced portfolio with 15 per cent could show a 6.7 per cent improvement and a moderate portfolio with only 10 per cent exposure, a 3.7 per cent uplift.
The industry asset allocation average in these types of portfolios ranges from 2.9 per cent to 3.8 per cent, the research showed.
In regards to identifying suitable assets, DomaCom said most advisers work with a professional property adviser.
However, the benefits of working with investment platforms like DomaCom is that “[we] also identify properties that can be crowdfunded”.
The firm added that “currently we have a campaign for The Block, a group of high end apartments featured on the Channel 9 program of the same name".
“The Block apartments are substantial at 240–270 square metres and will be sold fully furnished,” the firm said.
“The reason we chose The Block is that historically these high profile properties rent at a premium rate of approximately 4.2-4.9 per cent, which will be mainly tax-deferred as they have substantial tax depreciation schedules, making them ideal for investors.
“This season the rental estimates are between $2000 and $2500 per week with depreciation schedules ranging from $83,000 to $93,000.”
DomaCom said that a modest allocation to these properties will enhance most portfolios but with the season drawing to a close investor will need to be quick.
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