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Goal Setting

Step 2: Goal Setting

At LG Property Solution, suitability is the most important when starting to look for your property.

We need to set up a meeting to discuss your investment objectives. As a seasoned real estate agent, we need to understand your return objective and risk appetite/tolerance. After we understand your investment profile, we then proceed to find the properties suitable for you.

The return objectives may be stated on an absolute or relative basis. An absolute return objective may state the desired returns in nominal or real terms while a relative return objective could be outperformance relative to a comparable benchmark.

A client’s overall risk tolerance is a function of their ability to bear risk and their willingness to take on risk. When there is consistency between risk willingness and ability, the investment task is made easier. Where the two are in conflict, we should seek to explain the conflict and change the client’s willingness to take on risk that is not as a result of misperception. The prudent approach is to reach a conclusion about risk tolerance that is the lower of the two factors – ability and willingness.