At our property seminars in London, people often want to find out about how to grow a property portfolio; particularly if they’ve only got limited savings to invest.
In simple terms, property buying and selling is like any other form of trade. If you aim for relatively quick turnover, with a view to generate high profit, then you’ll swiftly gain more money in the bank to reinvest into other properties.
Here’s some frequently asked questions about growing a property portfolio.
Property Investment Seminar Tips – FAQs about Property Portfolio Growth
The Buy2Let Shop team hear this question a lot. If you’ve got (for example), £50,000 to invest into property, and you choose to purchase one buy-to-let property for sale, how can you make a swift profit from it?
Our advice? Don’t just buy the one property – purchase two or three, and get a mortgage on each. Obviously, it’s advisable to work with a property investment agent, who will offer advice about where to buy; as you want to purchase in an upcoming area where prices are likely to rise quickly. Rent out all of the properties initially (on short-term contracts), then after a year or so, sell one or two of them, for a greater profit. This is obviously a simplification, but it illustrates how you can make money swiftly from property investment, with a view to reinvesting into bigger, better things.
Firstly, it’s important to note that any form of investment is risky – though property is considered a lower risk investment than most. That’s why it’s so important to do your research first. Scour the market, and identify which locations look set to sky-rocket in price in the future. For example, areas like Sheffield, Manchester and Liverpool still have cheap properties on the market, but these are likely to go up in price over the next five years. They also generate great rental yield, which is an added bonus.
Of course! If you’re confident that you know what you’re doing, there’s no reason why can’t handle your investments yourself. However, some people choose to work with a property investment agent, as they often have inside information about the market, not to mention plenty of properties on their books that aren’t available to the general public.
It depends how quickly you want to sell the properties on. If you’re looking to sell quickly (and make a sizeable profit), then rental yield should be a lower priority. However, if you’re looking to take things a bit more slowly, then you’ll need to take rental yield into consideration, as you’ll want to generate a monthly income while you’re waiting for your properties to increase in value.
The Buy2Let Shop Limited
If you’re interested in UK property investment, talk to The Buy2Let Shop. Our team of property investment agents are on hand to help you generate great ROI, with a tailored plan that’s suited to your needs. We also host regular property investment seminars in London, which are great for those looking to gain insight into how to invest in UK property. For more information, visit The Buy2Let Shop website today.