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Financial Planning: The Benefits to Investors and Estate Agents

11.10.21 05:09 PM By Cai Bradley

Guest Blog: SevenCapital

Written by Sophie Oldman

When it comes to investing, knowing where to start is often one of the most challenging times for investors. There’s a lot to consider up front but thankfully, there’s plenty of support out there for investors that need it. For those with a clear financial plan, working with partners such as estate agencies will typically lead to a more successful, higher performing investment portfolio. 

But what makes a successful financial plan, and how exactly can this benefit a partnership with estate agents? SevenCapital, a leading UK property investment and development company, discusses some of the reasons why financial planning is so important for investors, and how this affects estate agents:
SevenCapital Guest Blog: Financial Planning

To Establish Goals

For investors, having goals is crucial and this should form a key part of their financial planning. If investors are aware of their current financial position and what they want to gain from their investment(s), estate agents can usually tailor their recommendations accordingly. 

Those who have a clear understanding of their finances will be able to determine how much they can initially afford to invest, which means estate agents can consider this in conjunction with an investor’s financial goals to suggest the most suitable options. 

Regardless of whether an investor’s goal is to top up a pension pot or to benefit from short-term capital gains, if an estate agent is aware of these short- and long-term plans they will be able to determine which property types and locations best fit an investor’s intentions. 

For example, property types that appreciate more in value over time could be better for those with a long-term plan, while locations that offer higher yields may be more well suited to those looking to maximise short-term rental returns. 

An added benefit of using an estate agent is utilising their expert knowledge, especially for overseas investors. Estate agents often have exclusive insight on any new developments and regeneration schemes in the surrounding areas, so for those who are unfamiliar with a location, this could highlight new opportunities more suited to an investor’s financial goals. 

Furthermore, if an investor has a clear idea of their end-goals, they’ll also be able to establish smaller milestones to stay motivated throughout the process. If an investor’s holding period is ten years, it’s understandable that motivation may dwindle, but having a clear vision of short- and long-term goals can often keep this momentum going.

Deciding on the Right Investment Asset

Once an investor has a solid idea of their financial plan, this makes choosing an investment asset much simpler. At this stage, a key consideration for investors is deciding on how much risk they’re willing to take. 

The amount an investor has to begin with will often narrow down their investment choices, but for those with a larger sum to invest, it’s often useful for investors to consider how risk averse they are.

For example, cryptocurrencies and stocks are typically riskier investments. The nature of these avenues means that the markets are always changing, which in turn, could see any profits fluctuate considerably. 
Financial Planning

Additionally, these types of investments also tend to be more time consuming. While investors might see larger returns more quickly, building a sustainable portfolio with considerable returns often requires more dedication.


On the other hand, buy to let property often involves less risk than cryptocurrencies and stocks. Bar momentary dips, the UK property market has been on an upward trajectory for the best part of 10 years, which has not only made it a more resilient asset but also a less risky one. 

Although maintaining a rental property can be time consuming, the opportunity to use an agent who manages the property can make buy to let investment more hassle-free without having to compromise on returns. 

Building Your Portfolio

Financial planning is not only beneficial for starting an investment portfolio, but also for building on these foundations in the long-term. While this will largely depend on an investor’s short- and long-term goals, the majority have ambitions of scaling a portfolio

If an investor has a suitable plan in place that involves building their portfolio of assets, they’ll be able to work alongside an estate agent to determine which properties and locations would be most suitable in their current portfolio. Additionally, effective financial planning would also account for how investors could finance further investments, utilising strategies such as leveraging or compounding.

For example, with the availability of different finance tools, such as the SevenCapital Investment Calculator, investors are not only able to get a starting point for their financial plan but also an idea of what to expect in terms of returns. As a result, investors will be able to work more closely alongside an estate agent to establish and leverage their assets. 

Regardless of whether an investor can reach their long-term goals with a single investment asset or an established portfolio, this will usually become clearer through financial planning. Not only does this allow investors to set their financial goals, but by highlighting potential assets and opportunities for growth, this will allow investors to utilise an estate agent and their resources.