3 tips for building the perfect property portfolio
The perfect property portfolio can mean different things to different investors, and is mostly dependent on your property investment goals, your financial situation, and the level of risk you’re willing to take. Building the perfect portfolio for you personally means sitting down and mapping out a plan of attack, and figuring out the best way to make your investments work for you. Here are 3 tips you may want to consider:
It’s all about balance
A balanced property portfolio can mean a multitude of things, such as owning property in different parts of the country, or owning both apartments and houses, or owning in both low and high income areas. With that being said, many investors make the mistake of only purchasing investment property near the area in which they live. Unless your own neighbourhood offers great value and high rental yield, you may be pigeon-holing yourself if you restrict yourself to buying in one area. Take the time to shop around, compare different states and locations, and make a decision based on facts. If you happen to find the perfect investment property on the other side of the country – what’s stopping you?
Tailor your goals to your budget
It is incredibly easy for property investors to underestimate the costs associated with purchasing an investment property and then getting it ready to be tenanted, which can lead to cash flow problems. If you create property investment goals that are too big for your budget, you’ll not only find yourself disappointed, but also in financial trouble. When creating a budget for property investment, be sure to factor in a buffer of 10-20% of the total expected cost to avoid running into unexpected costs down the track.
Get help from an expert
Building a successful property portfolio requires a lot of time and hard work, and if you’re working full-time it may be difficult for you to handle it on your own. You may think you’re saving money by doing it all yourself, but this can lead to making costly mistakes – which is why it is important to get help from professional real estate agents. At ParkTrent Properties Group, we provide a full range of services from buying an investment property, through to property management and growing your investment portfolio. Get started by checking out the investor section on our website here or by registering for a free property investment information seminar in a location near you here!