Why Buy More Than One Property?
So why would you want to buy more property for investment in the first place?
Owning a range of properties and building a property portfolio is a popular property investment strategy for those serious about making money through a long-term investment.
There are many benefits to owning more investments, such as:
- Increased cash flow from multiple investments bringing in rental yield.
- Less risk, as if one was to suffer due to real estate market changes, your other investments would still bring in returns.
- You can achieve financial freedom more quickly with a portfolio.
I Only Have a Budget For One Property – How Do I Buy More Rental Properties?
The first step is to think about your investment budget and consider how many properties you can actually afford at once.
You may have found a particular apartment or house that ticks all the boxes, with the only downside being that the price of the investment property leaves you with no cash leftover.
You may be considering using your entire budget to buy just one property for now and then using rental income from the investment to fund your second purchase.
While this is certainly an option, it’s not a good investment strategy if you want to build a property portfolio quickly, as it could take years before you’ve saved enough money to fund your second investment.
If you don’t want to be left having to buy one rental property per year and instead are looking to kickstart your portfolio, consider the following options.