While some people who choose to invest in property would rather purchase just one buy to let investment, many others choose the option of starting a property portfolio. There can be many benefits to property portfolios compared to owning just one investment, such as access to multiple streams of income. To succeed, however, you need to create a successful property portfolio strategy. If you’re serious about buy to let and want to find out how to build a property portfolio, take a look at these following tips in our ultimate guide.
What is a Property Portfolio?
Building a property portfolio in the UK means to purchase a number of buy to let investment opportunities with the aim of generating a significant return on investment – more so than with just one property.
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Think about long term Goals
Property investment is a serious venture that shouldn’t be rushed into. Before you begin building a property portfolio in the UK, you should take some time to think about your ultimate goal.
Hands-on or Hands-off?
You should also think about whether you want to be more hands-on or hands-off with your investment portfolio. Many people who look for a property portfolio for sale will want to take on landlord responsibilities such as finding and dealing with tenants, whereas some investors prefer to leave these things down to a property management company. Enlisting a property management company will mean more outgoings, but is often crucial if you don’t personally have the time to meet the demands of managing properties yourself.
Capital Growth or Rental Returns?
Once you’ve established the reason behind making an investment, you’ll have a clear idea of the steps you need to take and the qualities you should look for in your selection. For instance, you might decide that your main focus is for capital growth returns, and so finding a property with high growth prospects is ideal. Alternatively, your main focus for UK property investing could be rental returns, in which case you should find an opportunity that comes with high rental yields. Of course, the most successful investments will factor in both capital growth and rental yields, so it’s always a good idea to look for a property that meets both these requirements.
How long to build a Property Portfolio?
The time it takes to build a property portfolio can differ. If you have a good knowledge of the property market and have created a solid strategy, it’s possible to build a property portfolio in one or two years. However, this depends on your mindset and the amount of money you have available to buy properties with.
Do your Research
Like any investment, one of the most important steps in finding out how to build a property portfolio is to do some market research. Spend time researching the UK buy to let market to discover the best cities, regions and postcodes for property investment.
Look at Yields
Rental yields are the percentage figure that dictates the level of rental returns you’ll get from your investment. One of the number one rules on how to build a buy to let portfolio is to look for the best rate of return, and certain areas of the UK will have different yields to offer. Areas with the highest yields in the UK are those in the North, such as Manchester and Liverpool. Here, yields can reach heights of 14 per cent in certain postcodes, so it’s definitely worth factoring this research into your property portfolio strategy.
Consider House Price Growth
In order to know how to build a rental property empire, one of the most important tips for property investors is to be clued up on the growth prospects for each of your investments. This way, if your buy to let property dramatically increases in value, you’ll benefit from a huge return on investment when you choose to sell. Again, the market value of properties in the North of England has seen a lot of growth over recent years, with predictions for future increases. In the north-west, property prices are expected to increase by 18.1 per cent by 2022.
Pay Attention to the Population
The population trends of a city can dictate levels of demand. If an area has a high population of young people or students, for example, your rental property is more likely to be in high demand, meaning you’ll experience fewer void periods and rental costs will rise. Manchester is a perfect example of a city where the population has benefited its rental market. Manchester is home to a large number of students and young professionals, and has seen rental cost growth of 5.76 per cent in recent years.
Download Our Liverpool Property Investment Guide 2019
Download Our Liverpool Property Investment Guide 2019
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Keep Track of your Finances
Starting a property portfolio is a business in itself, so don’t forget to treat it like one by monitoring your finances as part of your business plan. Keep an eye on any incomings and outgoings, factoring in costs for things like repair and maintenance, and make sure that you’re making enough money to cover mortgage repayments and other possible costs. Your property portfolio will never expand if you don’t keep on top of money management, so this is a key piece of advice on how to grow a real estate portfolio.
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.
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.
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.
Consider House Price Growth
In order to know how to build a rental property empire, one of the most important tips for property investors is to be clued up on the growth prospects for each of your investments. This way, if your buy to let property dramatically increases in value, you’ll benefit from a huge return on investment when you choose to sell. Again, the market value of properties in the North of England has seen a lot of growth over recent years, with predictions for future increases. In the north-west, property prices are expected to increase by 18.1 per cent by 2022.
Pay attention to the Population
The population trends of a city can dictate levels of demand. If an area has a high population of young people or students, for example, your rental property is more likely to be in high demand, meaning you’ll experience fewer void periods and rental costs will rise. Manchester is a perfect example of a city where the population has benefited its rental market. Manchester is home to a large number of students and young professionals, and has seen rental cost growth of 5.76 per cent in recent years.
What do we offer?
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Parliament Square
New Luxury Property Investments
7% NET Rental Return
First Pick of Best Units
Parliament Square The Tower
L1 City Centre Postcode
7% NET Rental Return
Rooftop Spa and Indoor Pool
City Residence Apartments
Deluxe Apartments with Balconies
7% NET Rental Return
Near £5.5 Billion Regeneration Area
Parliament Square
New Luxury Property Investments
7% NET Rental Return
First Pick of Best Units
Parliament Square The Tower
L1 City Centre Postcode
7% NET Rental Return
Rooftop Spa and Indoor Pool
City Residence Apartments
Deluxe Apartments with Balconies
7% NET Rental Return
Near £5.5 Billion Regeneration Area
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This is my first time using RW invest, i was a little sceptical at the start as never have done an off plan purchase before hence much riskier strategy. However the team behind were extremely proactive with all the different stages of transactions from general queries to efficient and prompt response to emails, update on progress and chasing any issues on my behalf. I would like to say a huge thank you to Jamie Critchley (investment consultant) who was the main reason for me to make a decision to invest with RW. Jamie was extremely efficient in providing me with a detailed breakdown of the deal, he was always available to talk over the phone, and swift reply on email. He has deffinately added the personal tailor investment for me. In other side of the team Claire Czarnecki from Client care section was equally commendable for her timely and well organised structure which taken me towards the exchange of contracts in time. She looked after the entire process till exchange, making sure the solicitors receive the documents and chasing any issues. This being my first experience with RW invest Liverpool Parliament Square project i would highly recommend using them as the team are very productive and professional in making the entire experience of buying seemless. I will be now setting off towards the completion which is next year 2021, and i am positive that the next team would do an exellent job as the first two.
Paulo Motichande
17 January
CharlottE was extremely helpful during the process of us buying our investment property. She was always at the end of the phone, even via WhatsApp as I live abroad, offering to help and assist with the process wherever possible. This isn’t the first time we have used RW Invest and I will happily use them again for our next purchase. Totally trustworthy
Kimberley Foulkes
17 January
Claire’s friendly efficiency made the initial stage in this process a piece of cake. Certainly a factor I will take into account in considering future business with you establishment
Feisal
13 January
Claire Czarnecki, Client Care Assistant at RW Invest did an amazing job handling my plot. I felt I was always informed as to what stage of the process we were at. I was happy with the updates I recieved, which were always prompt and precise. I wish Claire the best in the future.
Abid Ahmed
08 January
Great support from the team in general, but particularly Claire and Cheryl in helping get my purchase over the line. A professional client-focused service.
Samuel Mathew
08 January
Rated 9.6 out of 10 based on 145 reviews on
Daniel been a great assets to me through the process. I've been informed on every step on the way that made me very much aware of the expecting process and steps forward. Many thanks Daniel for you help and support
Sami Sarhan
14 December
Great company, made the process easy but detailed enough for us to feel easy about it. Always communicating and never too much trouble to do anything. Charlotte was particularly great to deal with.
Hussain Bhaiji
13 December
So far with my time spent with RW invest has been great!! Cannot say anything bad about them, Especially Clair, she was a great lady from the start and still is till present, helped me with everything, made sure I was happy and if I needed anything she'll be there to assist and shes done/doing so. Recommend by far and once all is well I will hopefully be giving another Review. You can vouch my word for it!
Baby Evolve
14 November
First time i want to RW invest i was very impressed by how they do things. There is no pressure sale at all they show you the developments available and you choose whats best for you. The best thing about RW invest is that they do everything that is promised to you. Through from day 1 when i put the deposit down to the day of the exchange they called me every 1-2 days to talk me through the process and what needs doing. Thank you Daniel Stewart!!! Hopefully this is the first of many more investments with your company.
Viet My Singer
29 November
Make sure that you read very carefully all the media coverage and facts about the Liverpool property debacle. Be aware that the UK property market is unregulated and no smooth talking sales person will help you when if all goes wrong. Buyer beware. Just Google Liverpool property scandal and watch the tragedy unfold.
Julia King
03 January