Tips to grow your investment property portfolio

Tips to grow your investment property portfolio

Leverage the equity growth you have

If you already own one or more properties then you can speed up your property growth by leveraging the equity you have in your properties. Saving deposits is a slow and tedious process. If you can tap into the wealth of your portfolio and use that to buy more property then you can grow your portfolio much quicker.

Generate a positive cash flow

The primary reason for not buying more investment properties is not being able to afford the repayments on the investment property. Their investment properties cost them money and thus limiting their investment property portfolio. An investor of residential properties has to be patient and hold his properties for the correct time to start realising the profits, the positive cash flow from investment properties, which can then be redrawn into newer and more diverse investment properties.

A steady cash flow means the property can pay for itself and the investor can confidently invest in more diverse investment properties. Increasing your income with positive cash flow, along with reducing tax deductions can greatly help an investor with his property portfolio. 

Increase the value of your properties

Well-planned renovations can prove to be a good way to perk up the property values, it can also positively help with a quicker tenant occupancy and long term retention of good paying tenants. Putting some effort into making the home more comfortable, technology savvy and appealing to the tenants can work wonders for the value of the properties. It also helps you increase equity which can then be leveraged to buy more investment properties. 

Watch your property portfolio 

Investment properties cannot be a set and forget thing. Keep an eye your property portfolio closely to be able to take right decisions along the way and make the most of your investment property.   

Keep a track of all incomings and outgoings of your property, its condition and the tenant’s satisfaction. Be on the lookout for ways to increase your rental income and property value. Make sure you have hired the right property manager, have the right tenants who pay on time and take care of your property. 

Have an Investment Strategy

Investment properties are not ‘one size fits all’, hence, it is very important to know which investments are the right investments for you.

Having an investment strategy is of utmost importance to ensure you are investing blindly to have your finances wrecked in a few years. These are no small transactions and play an important role in shaping your financial future. Engaging an expert investment property strategist will make your investment properties on the right track with a clear foresight of the future. 

Bonus tips:

1. Long term gratification is the best kind, property investing is a long term game. The longer you hold your asset, the better its quality, making the timing less important.
2. Buy a property you can afford, in a proven location and look for high land to asset ratio. Land appreciation matters. 
3. Investment is a calculated risk, not just speculations, successful investors take action and build the property portfolio. 
4. Do your research and know the demographics, buy properties that will be in a continuous strong demand.
5. Understand the risks, know that property market moves in cycles, know the timing and when needed – take the advice of an investment property expert. 

Want to climb up the investment property ladder? Talk to us and find out what should be your first step. As property investment strategists we work with you to explore the best possibilities for your current financial stage.