All property investors want the very best portfolio of homes and assets that will provide wealth and financial security for years to come. The problem is that we also want that security and profit as soon as possible. Why hang around on a slow burn when there are opportunities to take advantage of. Here is some of the best advice on how to build a property portfolio quickly.
Buying the right property
This may sound like a really obvious thing to say to start a guide like this. However, the wrong property in the wrong area wont bring you any income. You can’t choose a property in an area because you think it is a bargain or you, personally, like some quirk about it. You have to consider its value to the rental market, and the tenants that will bring you rental income in the future. Is it in a desirable area for them? Does it have the facilities and features they would want from that type of property?
Research a strong local lead
This means researching the local area well and understanding what people want, where they can get it and where demand is high. It helps to invest in land and property that is close to your own location. This allows you to see the area, oversee the work and get a better idea of what is actually going on there. Don’t put all your eggs in one basket with a high-end investment in some hot new town across the country that you have never seen.
It can be quicker to buy the land and build, rather than a finished property
The problem with picking and choosing from current property on the market is that this can be a slow process if there aren’t too many opportunities currently available. The waiting game on new options can slow things down. The alternative here to to buy vacant land in an existing area and build that home that are very popular with young couples and families. You can build something you know is going to be easy to rent out, on your terms and budget, and reap the rewards fairly quickly. This is even better if you have a turnkey property where a renter or first time buyer is ready and waiting to move in on completion. (Please read our article on the advantages of building for more information)
The other important benefit here is the fact that there are high tax and capital gains incentives with this approach and you can enjoy greater financial rewards in a much shorter space of time. It is always preferable to have a strong positive cash flow in a new investment – a high income with minimal expenses. The old adage of “buy low, sell high” applies at all ends of the scale. Remember not to go over the odds on cost, to back yourself up with insurance and to walk away with good profits.
This first turnkey property is your catalyst for bigger and better things
This is the first step on how to build a property portfolio quickly. These instant rewards, and the satisfaction and success of this first turnkey venture will then fire you up to keep going. You can use the profits for the next ideal purchase on the market, or another plot of land. With all the right financial set-ups and schemes in place, what may have started as a small bid on a plot of land can grow with a greater safety net behind it.
