Building a property portfolio can be daunting – but with the private rented sector growing at record rates, it can be a highly valuable financial decision.

Are you looking to start a property portfolio? Making your first investment, and then moving from one property to several, is a big and long-term project.

In just seven simple steps this article will aim to help you build a sustainable property portfolio.

How to start a property portfolio

1. Set clear objectives.

Like any kind of investment you must first think about your financial objectives. Are you simply interested in capital growth? Or are you more interested in a long-term rental income? Or, like most property investors you are likely looking for a blend of the two?

Your answer to these questions will help to determine your first property purchase and the way in which you build your portfolio. In order to start on the right foot, you need to have your goals and priorities in place from the very beginning.

2. Start small.

In general, it is not recommended that anyone new to property investment invests in multiple properties from the off. Instead, we advise you think about starting off small and slowly building sustainability.

So… Choose your first investment wisely. Would you prefer a property close to where you reside, or do you trust the management of your property in the hands of others? For help on deciding what is right for you our team of experts are on hand to answer any questions. Contact us.

3. Low deposit high return.

You are lucky, it is currently a buyer’s market for property, many housing experts predict that prices will fall further. Investment is now available to all as before it was just open to the rich.

There is no need to be scared of the initial outlay, you are in safe hands with YesInvest, lots of our plots are backed by government initiatives. Your investment goes a lot further than any bank savings or ISA scheme.

4. Tracking cash flow.

When you start your property portfolio, it is imperative you keep track of your key figures. In the business world these are known as Key Performance Indicators. What are your first year returns? what is the minimum investment amount? When will you get your money back?

At YesInvest we handpick our developments so that our clients have the best-fixed returns and growth projections available. Your cashflow is as important to us as it is you. We have data to back up your investments and as your portfolio grows we are on hand to help every step of the way.

5. Managing agent.

Our plots are carefully picked so that your returns are maximised and your hassle is minimised.

When your property is complete we have managing agents who will tenant find, collect rents, check the property over, do all leases, call the landlord and manage any repairs so you can relax and watch your invesment grow.

Eventually, if you become more confident you can begin to do more of this side rather than using an agent we will write a useful article on this at a later date.

6. Grow cautiously.

If you want to build a long term property portfolio, our advice is to be cautious. There is a range of factors which suggests medium-term volatility in both the property market and the economy as a whole. As an investor it is important to keep your finger close to the pulse.

Our advice to you would be to pay close attention to your overall debt position. As your portfolio grows, try to avoid cross-collateralistion – that is, borrowing against the value of multiple properties at once. We have seen people be stung as they can’t service their debt, this could result in you being forced to sell multiple properties in order to pay off just one credit card.

7. The end goal

Finally, make sure you understand what your end goal is….

What is the ideal outcome for your property portfolio strategy? Are you looking to make your money work harder for you or a retirement income? Or perhaps liquidising your investments in the future?

By keeping your end goal at the forefront of your strategy this will help you ensure that you make the right investment decisions throughout.

Already on the road to a sustainable property portfolio or just starting out at YesInvest we combine our experience of over 20 years of residential property investment with our friendly team.

Contact us

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