A property portfolio is a group of property investments owned by a group, individual, or company. Property investment is one of the most common ways of maximizing your savings and growing your money.
Bear in mind that you must make the right decisions in order to generate money out of a portfolio. Fortunately, this list of dos and don’ts will help protect your investments.
You must conduct extensive research before purchasing any property. If you haven’t taken a look around the property or aren’t familiar with current sale prices, you can’t be certain that you are investing in a sensible project.
Make sure you don’t part with any cash until you research the neighborhood and obtain comprehensive information on house costs in the local area. The last thing you want is to purchase a property that looks great in a brochure only to discover that it’s a ruin inside.
Location isn’t just significant when it comes to drawing buyers who wish to live near a train station or good schools. It’s also necessary to know as much as possible about the location to establish whether your property is likely to face damage from environmental factors.
If you’re purchasing in an area that’s likely to flood or there’s heavy snowfall during winter, it’s prudent to see how it could affect your capacity to sell the property and obtain information on protective measures.
If you intend to hold of the property for a considerable period, investing in measures to prevent water damage or frozen pipes could save you money while making your home more appealing when the time comes to sell.
Try to do the work yourself
Managing investment properties needs more work than you may think and it might be tempting to try to save by doing everything yourself. However, this is a mistake because it’s virtually impossible to be your own property manager, repairman, and accountant; this could be costly.
Instead, build a team of dependable professionals to outsource the work. This way, you can be more productive with your time. You’ll discover that experts will help you save money in numerous cases, so think of them of an investment.
Pay Over the Odds
Don’t think that it’s not possible to make a low offer on a property. Bear in mind that your portfolio is a business and the goal is to generate a profit. You don’t know the seller’s position and they probably want a quick sale regardless of the price.
The worst that could happen is that they say no and you attempt to negotiate. When buying property, you should always request a “finance clause.”
Remember, your lender will want to establish the property’s value before agreeing to finance you, so the clause protects you in case they disagree with the purchase cost.
At times, the property market moves incredibly fast and if an apartment or house is in demand, you may have to make a fast decision.
However, in most cases, you will have time to arrange extra viewings and collect some more information regarding the property before deciding whether to proceed. Be sure to take your time and avoid rushing.
If you’re interested in making money by developing a property portfolio, you’ll need to make the right decisions. Fortunately, this guide will help you avoid mistakes in the future.
For more information on the dos and don’ts of starting a property portfolio, contact us at Apartment Agents or leave a comment.