Once you have multiple properties within your portfolio, you can start considering scaling upwards.
At this point, things can go wrong quickly and issues can arise, making it important to take it at your own pace.
Remember, property investment is a long-term deal so don’t feel like you’re under pressure to time the market perfectly or rush into things just because it’s the ‘best’ deal.
What follows is an excerpt from our Next Level Investment Guide: How to Build a Property Empire.
Inside the 2022 ‘How to Build Your Property Empire’ guide you will find:
- What does it take to start a property empire?
- What are the four pillars of a property empire?
- How can you build the foundations of a property empire?
- Starting a property empire with no money
The most important resource that any investor has is time.
Property is an inherently long-term strategy that thrives on an investor being in the market for as long as possible.
The longer you hold on to an investment, the higher the returns.
Ideally, you should have an ideal holding pattern in mind that will be developed during your planning stages. If you know that you’re planning to hold for five, ten or even 15 years, you’ll have a better idea of your next steps.
If you’re planning to scale, you might find success by investing through a limited company.
This is a form of investing that is growing in popularity as it offers unique benefits for investors that have multiple properties within their portfolio.
It’s important to remember that if you’re building a portfolio through a limited company, this needs to be planned well in advance, as moving properties in and out of a limited company can be difficult.
Stunning Off-Plan Investment Opportunity
- Off-plan apartments – estimated completion 2023
- City-centre location just 3 minutes from Brindleyplace
- Unique waterfront living in Birmingham
- 24.5% price growth expected by 2026 (JLL)
- Top location for London leavers – forecasting yields above 5%
Another key rule for portfolio investing is starting small and maintaining consistency. You don’t need more properties than you can manage.
The same goes if you’re reinvesting. You’ll want to adopt a patient, ‘slow-burn’ approach that helps you maintain a positive cash flow.
This approach also allows you to rebuild your deposit pots with rental profit, while providing more overall flexibility.
At the same time, maintain a diverse portfolio. There’s opportunity for you to have several locations and even several asset types in a single portfolio – make use of it.
It might be that you have several single-lets or multiple HMOs across several locations.
By not having all of your eggs in one basket, you give yourself the best chance to gain from a market that will see highs and lows.
At the same time, property portfolios and long-term strategies inherently suit a long-term strategy centered around a quality product and you shouldn’t be afraid to opt for quality over cost.