Portfolio analysis: take stock of your property

The decision to sell or reinvest begins with a stock take: what is the value and potential of your property, the individual properties that you own or your entire property portfolio? If you cannot answer this question right away, you are not alone. A recent Engel & Völkers survey found that around half of all property owners do not know exactly how much their property is worth. A property or portfolio analysis can be of great help here.

A comprehensive property analysis starts by taking a close look at the current condition of the building. It recommends maintenance and modernisation measures and provides suggestions for how to expand and develop the building. It then takes into account the external environment and the current market situation. The property analysis shows you both the risks and the potential of your property and provides a market valuation based on similar properties that have been sold in the area.

Aspects of the property and portfolio analysis

Often these analyses bring up things that you may not have thought about before:

• Are there any major renovations to be expected in the near future? Have the electrical installations not been updated for a while and are no longer compliant with current regulations? What is the energy rating of the building? Do investments (e.g. an updating of the heating system) need to be made here to meet the requirements of the MuKEn 2014 (Model Prescriptions of the Cantons Regarding Energy) which form the basis for the implementation of energy regulations in the individual cantons of Switzerland?

• The profitability of the property also needs to be examined closely. How is the rental income developing? Is it in line with the market? Is there some wiggle room? What does the rent index say?

• What is the marketability of the property or portfolio? How has the market developed in the past? What future developments have been forecast?

What are the expenses, profits, returns and risks?