Possessing property investment portfolios can be a great way to increase your wealth. Typically, an investor will carry a number of different types of property investment in their portfolio, ranging from residential property to commercial and off-plan property. But as well as property, investors often showcase a variety of asset holdings such as bonds and shares. Keeping a diversified property investment portfolio is the key to making it a success.
Investment property portfolios are hugely advantageous – you can spread your money across a range of investments without having to depend solely on the returns from one single investment. So how does it all begin? Well, as with investments of any variety, it’s important to carry out as much research as you can about the principles involved before you have even started to view properties. Think about investment locations and whether or not you will want to be based close to your investment in order to manage it or whether you will use an agent.
Gather as much information as you can about the area you have chosen to purchase in.
Ask local estate agents about rental yields in the area and visit as many properties as possible. Many investors admit to viewing as many as 25 properties before committing to ‘The One’. Getting the very best price for your property is essential, so don’t be afraid to bargain and learn as much as you can about the seller’s personal circumstances – they might reveal a loophole that could bag you a better deal. Getting a full survey carried out is also important as any problems found will make you liable as a landlord if you plan to rent out the property. But on the bright side - if any structural problems are identified, you could use this to get the price down.
Usually, an investor will purchase the very first property for their portfolio using the equity from the home they currently own. Often, this is a property in need of renovation and can is bought for very low price tag. The next part of the process is to wait until the prices of both properties have increased in value, then a third property will be purchased and so on. The more property portfolio investments an investor obtains, the faster their equity will grow, allowing them to buy further properties. Always think ‘Location location location’. This phrase is still commonly used when it comes to investing in property anywhere in the world. The success of your property investment portfolio lies in the location of properties you possess. If they are close to amenities such as schools, shops and transport, they will unsurprisingly be more attractive to potential tenants and future buyers alike.
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.
Other articles of interest
Improving a property investment portfolio is as difficult or as easy as you want to make it, depending on how emotionally or psychologically involved you become with your investments.
Right now around the world there are millions of properties on sale for far less than they are worth. In America alone there are hundreds of thousands, and they are so far below value...
In order to grow successful and diversified property investment portfolios, investors must obtain or already possess a number of properties, spreading their money across a variety of investments...