Whether you are new to the investment game or an old hand, it is obvious that investing in property is an essential part of building a robust portfolio. And, the more of a mix that you have in your property portfolio, the less risk you will be exposed to.
In today’s guide, we’re going to take a look at some simple ways of expanding your property portfolio. Play it well, and you should see higher return on your investment, with far fewer shocks along the way. Let’s get stuck in straight away.
Find up-and-coming areas
All great property investors try and keep in the loop of new and promising areas. This could be in your current city, or even in another country. There are plenty of clues that will spring up that can give you some ideas. For example, perhaps a state or government has announced investment in a particular industry, which will provide jobs in a specific area. Or, on a more local level, perhaps a run down area is attracting the arty types, middle classes, and coffee shops. Keep your ears to the ground, and be ready to strike fast when the time is right.
Spread your risk
Let’s say you have a few houses that you rent out to students. Your next property investment should be something else entirely. Perhaps a luxury flat, or maybe a business property. As with all investments, it is vital to spread your risk around. You never know when a university could close down, or build a new student village. You could be left in a tricky situation if that were to happen and you didn’t have backup properties.
Invest in off plan
If you are looking to expand and save a bit of money at the same time, then you should consider buying off plan, either domestically or abroad. Off plan property investment is when you pay a developer for a house or apartment that hasn’t been built yet. They get an influx of cash to help with their costs, and you get to speculate whether the value of the property will rise in the year or so it takes to build. It can be a great way of making a good amount of money in a short period – although you have to be careful. Without knowledge of the local market and an understanding of trends, it will be a complete gamble.
Grow out of one area
Another way of building your portfolio is sticking to a single location and buy up more properties in that area. It’s a simple case of knowing your market, what it needs, and what sells. You will become a specialist in your area, and the more properties you buy, the less exposed to risk you will be. And, of course, you will have more control over your rental prices when you have more properties to soak up a loss.
Are you ready to expand your property portfolio? Why not try one of these simple methods and see how you get on? Or feel free to give us your own hints and tips. Happy property hunting!