If you’re looking to become a property investor, you’ll want to start thinking of the best ways to build your portfolio.
While this may sound like a complex process, you can take several steps to ensure you’re on the right path towards building a property empire.
This article will provide some essential tips and information on the best way to start developing your portfolio.
As a new investor, starting with just one property is usually best. Ambition is no bad thing, but you don’t want to overwhelm yourself right from the beginning.
Taking the time to focus and fine-tune your property management skills will only help in the long run. At the beginning of your portfolio, focus on making a good return and building your confidence.
Plan and research
Although it’s best not to rush, it’s crucial you set yourself goals at the start of your venture and take the time to plan for the future of your business.
You’ll have to consider the type of investment and return you expect to make, whether it’s through renting out a property or sitting on your portfolio until a time when the market value has risen enough to provide you with a solid income.
Either way, you’ll be looking to maximise your profits, so you have to decide how long you’re willing to wait to receive any sort of return in the first place.
The best way to keep track of your goals is by coming up with a business strategy, something the team at Smith Butler can help you with.
Once you’ve set your goals, you’ll have to start thinking about the types of property you’ll buy and who your target audience is. In this case, you would be thinking about your ideal tenants.
The best way to carry out this research is by looking at average rental prices and property prices in your local area (or any area you wish to invest in). When you decide on the sort of portfolio you want to build, you’ll have to calculate your average annual return. This can be done by comparing similar properties and their monthly rent.
Keep your finances under control
When starting out in any type of business, it’s important to make sure you have tight control over your finances, especially if you’re investing in high-value assets like property.
There are a lot of costs to consider when renting or selling property. For example, if you’re looking to take on tenants, you’ll have to take out landlord insurance in case anything were to go wrong.
Not only that but if your tenants decide to leave, will you have enough money to keep the building maintained until you find someone else to move in?
This is why having the expert accounting team at Smith Butler by your side could be the best solution. We’ll stay on top of your finances so you can focus on managing your portfolio.
If you need help raising the finances to start building your portfolio, we can help you identify the best ways to secure the capital you need.
Get in touch
At Smith Butler, we’ve helped ambitious businesspeople like yourselves set up the base of their property portfolio and push for success, so we can help you too.
Get in touch with our team to discuss building your property portfolio.