4 Tips For Expanding Your Investment Property Portfolio
One of the best ways to build long term wealth and generate interim cash flow is to purchase investment property. While an investment property can provide great overall returns, there are several tips that need to be followed when you are looking to expand your investment property portfolio.
Buy Based on Location
The first tip for expanding your investment portfolio is to buy in good locations. While you may be able to find a cheap place that can produce decent rental income, homes that are located in bad markets will see a slower pace of appreciation and will be harder to rent out. When you are looking to buy, it would be wise to spend a little bit more money on a place that is well located. Look for locations that have good schools, access to public transport, and are near parks and other areas for recreation. These types of locations will be more attractive to potential tenants and will see more value rises.
Hire a Manager
The second tip to follow when you are looking to expand your property investment portfolio, is to hire a letting or management company. When you are just starting out and only own a few places, it is possible to manage your own properties. However, as you grow your investment portfolio, the amount of work that is needed to keep the places up and running will also grow dramatically. To ensure that the places stay in good condition, stay occupied, and are well taken care of, it can be a good idea to hire a professional management company.
Find a Good Bank
The third tip for building and growing your property investments, or property portfolio, is to find a good bank and develop a relationship with them. Buying property is a very capital intensive investment, and unless you have a lot of money, you will need to take out a mortgage. If you are able to develop a good relationship with a bank you will eventually be able to get more favourable terms when it comes to leverage, repayment, and interest rates. This could help you buy properties at a quicker rate, which will help to improve your overall return on investment.
Build Relationships with Estate Agents and Brokers
When looking to buy a new property asset, you will likely find that there is a lot of competition, and good properties will sell fast. To ensure that you are able to get the best overall assets, you will need to be aware of deals before your competition. To get access to the best properties early on, you will need to have good connections with estate agents,local business people, and mortgage brokers.