Building a property portfolio will give you the freedom to earn a passive income, meaning you can concentrate on doing what you love – whether that’s running your own business or spending time with family.
But property investment can be a slow game for first-timer property investors, as jumping from one property to five is big.
Below, find nine strategic ways to fast-track your property portfolio.
Be an active investor.
Many investors formulate a strict plan to follow, which may mean only investing in a property every one to two years. Although it’s good to have a strategy in place, stay open to new opportunities, or you may miss out on exciting changes in the market.
Know your limits.
Before expanding your portfolio, speak to your bank or financial planner to get a clear understanding of your finances. This will enable you to organize your savings, loans, and equity – helping you to set boundaries in advance.
Increase the value of your properties
You can boost both your properties’ rental income and value through renovations – both big and small. By increasing your rental income, you will have the greater cash flow available to play with when investing in and servicing more properties.
This will also enable you to increase the speed at which you invest with deposits are your disposal.
Look after your current portfolio.
To increase your property portfolio, make sure to nurture what you already have.
Below, find a list of the essential ways in which you can keep track of your current portfolio:
- Treat building your portfolio like running a business by keeping an accurate record of the incomings and outgoings of your properties.
- Make sure to check in with your property manager regularly to keep an eye on the condition of your property. You can discuss how you can increase rental income or value with your property manager.
- Choose your tenants very carefully. They must respect the property and pay rent on time. This is where hiring a property manager is especially important as you won’t have to bear the sole responsibility of this.
Cut your losses
If one of your properties isn’t attracting renters, requires too much maintenance, and costs more than you first anticipated – it’s time to cut your losses.
Hanging onto a property that isn’t going to deliver will harm your future investment chances. Please seek advice from a real estate consultant and contemplate whether or not it’s time to sell.
Streamline your talents
Once you have begun to build a solid portfolio, try to identify your strengths and strategise from here. Perhaps you’re best at renovating properties to sell on? Or maybe your talents lie with rental properties which require minimal renovation?
Stick to what you know and study it, whether attending property investment seminars or taking a property investment course.
It would help if you also defined your investment strategy. Are you seeking rental yield and capital growth? Ideally, you will have a strategy in place which achieves both.
Diversify your portfolio
Another strategy is diversifying your portfolio. By investing in different areas and property types, you have the opportunity to increase your chances of boosting rental growth. For instance, you don’t want to invest in several properties within the exact location if house prices drop or the suburb becomes less desirable to your target market.
You will also balance out your returns by investing in both cash flow positive properties and high growth investments.
No matter how experienced you are, it’s always a good idea to stay updated with the latest market trends. A property investment course is a great way to receive expert advice and support. Several courses also enable you to participate in live Q&As, meet fellow investors, and ask questions of expert property investment consultants.
You don’t need to do it alone. By researching and hiring tax advisors, solicitors, mortgage brokers, and property managers, you can rest assured knowing that you are receiving advice from the best in the business.
It may also be worth seeking assistance from family members, friends, or colleagues who have experience in real estate investment.
Whether you’re a first-timer or a well-versed property investor, adopting the above strategies will enable you to fast-track your property portfolio.