BlogSharesight Features & Tips

How to track an investment property in Sharesight

by Prashant Mohan, Chief Marketing Officer, Sharesight

Note: In this example below, I don’t take any debt used to purchase the property into consideration. Sharesight can’t handle negative balances and interest expenses that may be incurred in buying the property.

As a multi-asset class investor, I like to track all my investments on the same basis. Before I started using Sharesight, and the money-weighted methodology, if someone asked me whether my investment property was a good investment, I would look at the performance purely in terms of capital gains and would’ve concluded it was “doing okay” as an investment.

With Sharesight you can do so much more, in this example we show how to get the full picture of your investments, by adding a property investment to your Sharesight portfolio.

How to track investment property Sharesight

How to record the purchase of an investment property in Sharesight

To get started you need to enter the purchase or the “buy” transaction for the property, for this I used the custom investment feature in Sharesight.

Buy property Sharesight

Update Feb 2020: We have increased the maximum price you can set for a custom instrument to better handle investments in property. Previously the maximum price was limited to $999,999 - we have increased this to $99,999,999. However, in the unlikely, but possible scenario where you own a property (or other custom instrument) with a value higher than that you can record a unit/share price of $1 and use the ‘quantity’ field as a workaround to record the total value.

I use Sharesight as a tool for record keeping as well as tracking performance of my investments. So I upload copies of any document relevant to this transaction, such as stamp duty receipts, solicitor fees, buyers agent invoice, and property valuations. I also use the comments section to document my investment thesis.

Upload documents to Sharesight holding

How to track investment property rental income in Sharesight

This is an investment property that I also rent out, this rental income can be recorded for the property in Sharesight. Below is a statement screenshot with the rental income and expenses on that particular month.

Rental Investment property income Sharesight

I record this rental income as a ‘dividend’ payment for the property holding in Sharesight. I also attach the rental income statement from the real estate agency to this dividend entry by uploading the statement against the ‘dividend’ income payment record.

Adding rental income distributions Sharesight

Adding all entries for the investment property’s rental income and expenses over the years below.

Rental Income Track Sharesight

How to update your investment property valuation

Should you perform an appraisal on your property and its market value changes, you can update the price to reflect your property’s current valuation in Sharesight.

Manage price

To do this, use the “Manage prices” button on the holding instrument detail section (screenshot above) then update the value to reflect the new valuation for the property - this will allow you to track the value of this property alongside the rest of your investment portfolio over time.

Property Valuation Sharesight

Visualising your investment portfolio using custom groups

I like setting up my portfolio to visualise my performance by asset class using my own custom group definitions. To access and define your own custom groups, see the screenshot below on where it is located in Sharesight.

Custom Groups in Sharesight

Once in your custom groups settings, you can define and categorise your investments by your own asset type groupings. For example, the groups In my own portfolio are shown below.

Custom Groups Editing Sharesight

Once my custom groups are set, I can use these groupings to view performance broken down along these custom dimensions in Sharesight reports like the performance report, diversity report and contribution analysis to monitor and track the performance of my investments.

Track all your investments in one place

Not only can you track your investment property with Sharesight, but with Sharesight you can:

  • Track all your investments in one place (stocks, bonds, property and managed funds to name just a few) and in turn compare different asset classes by the same performance metrics so you can identify winners and losers in your portfolio.

  • Get the true picture of your investment performance, including the impact of brokerage fees, dividends, and capital gains with Sharesight’s annualised performance calculation methodology.

  • Use Sharesight as a system of record, including documenting each step of your investment strategy.

The best way to understand what Sharesight is all about is to sign up and try Sharesight for yourself. We’re confident that you’ll agree that it’s the best way to track all your investments in one place.

FURTHER READING

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