Make it diverse
The best investment strategies look at creating property portfolios that include a number of different investments. By investing in just one type of property, you’re limiting your potential and making yourself more susceptible to failure. Say your portfolio was filled with multiple student properties in the city centre of one city – if the market slowed in this area or the city experienced a lull in university applicants, your entire property portfolio would suffer. If you’re serious about learning how to grow a property portfolio, diversification is one of the key elements to consider.
Invest in both residential and student properties
Rather than simply sticking to one type of property which attracts a certain type of tenant, you should invest in both student and residential property types. Both these investment types are known to be extremely successful and come with varying costs which makes them perfect for a diverse portfolio. For instance, if you’re wondering how to build a property portfolio with 50k , student accommodation is a good place to start as this tends to be a particularly affordable asset.
Spread your investments across top-performing areas
While you’ll likely have a good idea of the area you want to invest in, you shouldn’t put all your eggs in one basket by investing solely in this location. Instead, narrow your research down to 3 or 4 of the UK’s best-performing buy to let cities, and then hunt for a varied mix of investments in these areas. One property portfolio example could be a portfolio that consists of an investment in each of the top-performing rental yield postcodes in the UK.
Establish an exit strategy
One of the most important aspects of building a property portfolio, and property investment in general, is to have an exit strategy. An exit strategy looks at the end result of each investment, considering what to do when it comes to selling your property. Your goals will tie into this, as if you’re investing as a way to build an attractive retirement fund, you’ll want to generate as much rental income as you can before selling at the right time. By researching market trends and considering property price predictions, you can get a sense of the best time to sell your investment property for optimum gain.
If you’re looking to find the perfect options for your property portfolio for sale, and want to put your knowledge on how to build a buy to let portfolio into practice, get in touch today. We have a range of opportunities available in Liverpool and Manchester that are perfect for building a diverse portfolio.