Which type of investor are you?

Ask any property investor what drives them and you are likely to get the same answer - to make money and obtain financial freedom. However whilst most investors would admit to being driven by the same goal, the level of risk they are willing to take is anything but uniform.

If you are a would-be investor, it is worth determining that risk before settling on the right investment for your portfolio. After all, your choice of location will vary massively depending on whether you are a cautious, adventurous or speculative investor. Generally speaking, risk begets reward and low returns are associated with low risk. So before making any rash decisions, take the Risk Test from Invest in Property – a good starting point for any magnate in the making.

1. What timescale are you looking at before seeing a return on your investment?
a) 1 - 5 years
b) 5 - 10 years
c) 10+ years

2. What kind of property are you looking for?
a) A small villa with plenty of rustic charm
b) A smart new build in a newly built complex
c) An off-plan condo – a twinkle in that builder’s eye

2. What is your financial goal?
a) A guaranteed, regular income in retirement
b) Security, the finer things in life, an adventure in my later years
c) Topping the Rich List

3. Which of these statements reflects your attitude about your investment capital?
a) I want to see back every penny I put in
b) I am willing to lose some of my investment if get a good return in the future
c) I’m willing to lose it all if the end result is ludicrous profit

4. Which of these statements do you agree with?
a) My investment must generate a steady rate of return over a long period
b) The return of my investment may fluctuate, as long as I meet my long-term goal.
c) My investment might completely evaporate, but it also may out-earn any other equity-based investment

Mostly As: Playing it Safe
You are likely to be an older or risk adverse investor with limited investment capital and little or no risk capital. Buy completed or newly built properties from reputable builders in established countries such as Spain or France where you can expect a regular and secure return on investment. Avoid the pitfalls of buying abroad by sticking closely to the three rules of property investment: Research, Research, Research! Watch Simon Zutshi’s Seminar at Invest in Property, 13 – 15 July, Earls Court, London. The self-made millionaire of the Property Investors Network will be holding a seminar specifically designed for the rookie investor, showing visitors how to make the most of their investment.

Mostly Bs: Everything in Moderation
You have a taste for risk and expect to make some cash but not at any cost. Particularly suited to younger and less risk averse investors with reasonable investment capital and some risk capital. Look at off-plan or completed properties in areas undergoing significant redevelopment such as Bulgaria and Dubai. You can expect to have lower rental incomes in the short term with a view to capital gains in the coming years. With investments like this you should take a long term view and hold your nerve in periods of financial downturn. Visit Kamran Mahmood, the CEO of Minc Property Enterprises Ltd at Invest in Property who is holding a seminar on buying in Dubai.

Mostly Cs: Speculate and Accumulate
You’ve got the balls to make some serious cash. Choose areas undergoing significant redevelopment where you can expect great capital gains in the coming years as development heats up. Speculative investments are likely to have poor rental returns initially and are most suitable for very young and/or risk friendly investors with time on their hands to watch the market explode. Make sure you catch Steve Bolton from Property Know How who will be telling visitors how to give up their day job in less than 3 years through successful property investment.

Whatever your investment personality pay a visit to the Invest in Property Show, 13 – 15 April at London Earls Court where a whole host of experts will be on hand to offer advice for the most cautious and speculative of investors.

Experts will be on hand at the show to advise both experienced and novice investors on everything from their first investment to the next addition to a successful portfolio. The show features financial and tax experts, current buying advice on emerging markets, off-plan purchasing opportunities, structural and interior advice, market information and predictions, tips for landlords and licensing, maximising buy to lets and let to buys, and hints for dealing with estates agents and solicitors, not to mention over 150 quality exhibitors.

Entry to the show is free. A full day pass to the seminars at the show costs £10 and a session pass costs £5. To pre-register for the show or for more information, log on to investinpropertyshow.com.