Build Your Property Portfolio: An Ultimate Guide To Building Your Property Portfolio In The UK

Most people in the UK see property investment as the preferred type of investment. As a result, even those that are not investors, like to see their properties increase in value. The first step of building your property portfolio is buying the first property. Usually, this is the tricky part because most people are not sure where to start with property investment. Choosing the first investment property wisely is important to the success of your future portfolio as this sets the tone for future dealings and enables you to use this first property to buy more properties.

It is important to be well informed about the advantages and disadvantages of property investment over other types of investment in order to be determined to build your portfolio.

  • Education on property investment in the UK is easy to access and understand
  • Rental income has performed more consistently than cash or stock dividends
  • In the long term, capital gains from property investment are stronger than most investments
  • High returns with a low level of volatility
  • The risk associated with property investment is low
  • You're in control of adding value to your investment

Whilst it is easily demonstrated that English properties grow in value, if you have just one property, then you have to wait for that property to increase in value. During this time, you may miss out on other opportunities to further make money.

Gain Knowledge

Knowledge is power, information is liberating and education is the premise of progress. Devoting time to educate yourself has an invaluable return on investment and will significantly increase your chances of success. An investment in knowledge pays the best interest and this can be achieved through reading books, blogs or attending seminars and masterclasses. The greatest investment that you can make is in yourself.

Get Connected

This refers to increasing your connections with the right people - your very own Power Team. The value of having the right connections cannot be overemphasised. See your Power Team as an extension of you. Whom do you want on your side? Having the right connections means you can leverage all of their experience and expertise.

Get a Mentor

If you're learning from someone that already has the knowledge and you can learn all you want to know faster, you are already halfway through the journey of building your property portfolio. One of the greatest values of mentors is their ability to see ahead of what others cannot see. They can help you navigate a course to the right destination. This is because they have the experience and expertise. They can offer valuable advice, direction and connect you with their Power Team.

Gain Experience

Once you have the knowledge, it is much easier to purchase your first investment property... and it gets easier from there. As you become more familiar with the workings of property investment, you start to accumulate your own experience. Experience is a great teacher in the learning process. A wise way to start would be to learn from other people's experience rather than your own. Learn from other people's failures and successes and then focus only on pursuing the successes

Understand Equity & Leverage

One of the easiest ways to build your property portfolio in the UK is by taking advantage of the equity you have in your properties. Properties usually go up in value and part of this increase can then be used to purchase more properties. You need to be able to identify suitable the properties that suit your property investment plan. Proper research and planning will no doubt help you develop strategies to invest well.

Maintain Positive Cash Flow

Always make sure in every investment you make on properties there is profit at the end of the day. At the very least, ensure that you can service your debt. The cost of expenses like maintenance generated from each property should never exceed the payment you get from them. The profit can then be used to further increase your standings in the UK property market. This can be done either by purchasing more properties or adding value to the existing ones through targeted renovations. Alternatively, if you build a robust property portfolio, the profit you make on properties is useful when some of your properties may not be performing.

Know How To Exit

Do you hold, do you remortgage or do you sell? Understand your exit strategies...and when to apply them.

Maximise Income

This involves being able to increase the rental income when you justifiably can. You can lower your letting management fee. You can look into lowering your mortgage interest rate. Ways of increasing rental income include:

  1.  Regular checks, maintenance, and clean-up
  2.  A new paint job
  3.  Upgrade facilities that are out-of-date
  4.  Consider added extras that emotionally drive tenants
  5.  Focus more on kitchens and bathrooms
  6.  Improve the natural environment

Plan For The Future

Most people miss this. What is the ultimate aim? Cashflow, a lump sum, inheritance for your children, a legacy for generations to come? Once you understand your end goal, you can structure your purchases properly from the start.

Explore Uncomfortable Zones

Remember, you are not buying the property to live in it; you are buying it as an investment. Don't be fixated on a particular area just because you live near it, otherwise, you'll miss all the better opportunities in other areas. Don't focus on one strategy just because that's the only one you know. Learn the other strategies and then decide which is the best for you. Understand the importance of diversification and how that can benefit you.

Gain Emotional Intelligence

Things go wrong with property investment. Accept this. However, know that there is a solution. The ability of the unexpected to happen is the reason why investing in properties is difficult. So to succeed there is a need to be able to predict the future. This comes from knowledge of the UK property market. So if setbacks happen at the beginning, do not let fear of something going wrong keep you from investing. Once appropriate analysis has been done, success is inevitable. With proper education, analysis and experience, you will be able to gain emotional intelligence.

Start Now

Now is the time to learn, build your power team, raise capital and start your property investment journey.

Best Regards,

Shane Hindocha