real estate and mortgages

Investing in a Property Portfolio

Recent years have seen a boom in the housing market, making property investments a popular way of making money. However, the current financial climate has led to the stabilizing of interest rates along with property prices remaining steady, making people question whether or not now is a good time to be investing in real estate. It is always a good time to start building up a property portfolio providing you are prepared to commit long term. If it’s a get rich quick scheme you are looking for, property investments are probably not for you, but if you can look 10-15 years down the line, then it is likely you will see your property appreciating in price.

It takes time and plenty of research to know which of the many property investment opportunities is the right one for you. Many books and websites offer sound advice as well as national shows which hold seminars for potential investors. You can invest directly on your own by finding properties that can be improved and renovated, or you can choose to invest through a property investment company that does all the research and makes investments for you. Many of these firms have fully tested means for making sound investments whatever the financial climate and have the influence to make purchases below market value, ensuring considerable profits are made.

With shrewd buying it is feasible to build a sizable property portfolio in a fairly short length of time. Interest rates are at an all time historical low, while tenant demand continues to be strong. The healthy rental market continues to offer smart investors decent long-standing prospects. With so many property investment opportunities out there, choosing the right one for you is key to building a successful property portfolio and the more educated you are of the market, the more likely you will be financially successful.

Begin your research with understanding the legislation for landlords. Read plenty of books, keep an eye on the market prices and attend seminars, exhibitions and property shows. Novice investors may find approaching companies that specialize in property investments is the easiest way to start their property portfolio business. These consultancies and firms do the time consuming work for you by scouring the real estate market and examining the rules that certain property investments involve. By investing into a property scheme with a respected company you will be reducing the risk of financial loss. These firms pool investor’s money, giving them the buying power to purchase below market value, giving you better returns. These companies can also access deals that are unavailable to private investors.

You can begin to build your property portfolio with just a relatively small sum of capital. The more money you can afford to invest, the greater the opportunities are and the larger the returns are likely to be. A property portfolio does not have to be a huge number of properties, but can consist of just a handful. It is imperative you hold some money back as a reserve or buffer as your properties may not always have tenants in them paying rent. Property will make you money if rented out constantly at a decent rate, however it will cost you money if it sits empty for periods of time. It is therefore prudent to ensure you have a reserve of money for every eventuality.

If you decide to avoid firms dealing in property investments and invest independently, it is important that you locate the right property. Think about where the property is and whether you are going to manage it yourself or find a letting agent. Find out through the letting agents what the local rental rates are and what you are likely to receive as a landlord. Go to see all the available estate agents in the area you are looking at and visit as many properties as you possibly can. When you decide to make a purchase, find out everything you can about the seller’s situation and make sure you bargain to get the best price. Have a full survey done as you will be liable for any structural problems as a landlord and it may help with the price negotiations.

If you are uncertain of how to start building your property portfolio, join a professional property investment company. By becoming a member you will have access to their extensive research and collated market data, providing you with the facts and information required to make an educated investment decision. Property investment opportunities are endless and by selecting the right ones you will be able to not only develop, but sustain your fortune.

Property investment always has the goal of maximizing profits while lessening associated risks. By utilizing a property investment firm you will rely on their controlled models which have been designed to make money while decreasing risks in all market conditions. Their projects are put through rigorous testing and need to meet stringent criteria in order to be approved as potential investments for their members. Their aptitude for buying at below market value generates significant returns, making an investment with an experienced property investment firm a great place to begin for a first time investor who wishes to build up a profitable property portfolio.

By High Yield Savings Accounts

The founder and editor of with a passion for personal finance and experience in the financial industry.