The PDF Estates service is ideal for those that wish to invest in property but don’t how to build a buy–to–let portfolio, or don’t know where to start. We will conduct market and property research and determine the best type of property for starting a property portfolio. We will help you build a property portfolio to bring in regular rental yield or to build your capital.
As established and experienced landlords ourselves, we have developed and built our own property portfolio, as well as helping other new investors do the same. We understand the requirements that you have, and we can help ensure that your property investment portfolio has the potential to yield profits.
The Benefits Of Building A Property Portfolio
Although prices are prone to fluctuation, like any form of investment, real estate is widely considered to be one of the safest forms of investment. House prices have consistently increased over the decades, and while many investors are reluctant to flip properties by buying and selling them quickly like they did in the 1980s and 1990s, those that take a longer-term view can enjoy a reliable and safe investment vehicle.
Investing in a single property is unlikely to offer you total financial freedom, but you can enjoy financial freedom if you build a property portfolio. A property portfolio consists of multiple properties and this means multiple tenants and risk that is spread across several investments. A diversified real estate portfolio can further reduce levels of risk, while also offering greater returns and yield.
If you already have other forms of investment, you can minimise the risk that you face with these investments. Whether you have a portfolio of stocks and shares, have amassed a large amount of savings, or you hold foreign currencies, you are at risk from fluctuations in these markets. A powerful investment portfolio is one that spreads risk, because this means that if gold prices drop, for example, then you will have stocks, savings, or other investments to make up the gap. Adding property investment to your portfolio further spreads the risk of your investments.
Reduced risk and the potential for financial freedom are the greatest benefits when you build a property portfolio.
Once you have built your portfolio, you will also have access to greater equity. As your portfolio grows, this means that you can continue to use the equity to buy more property or to fund additional investments.
What Is A Property Portfolio?
A property portfolio is more than just a property investment. It is a collection of properties, owned by the same individual or group. It typically consists of two or more separate properties, and usually relies on rental yield as a means of regular income. Most investors start out with a single property but decide that they want additional real estate as part of their financial investments.
How To Start A Property Portfolio From Scratch?
If you don’t know how to build a property portfolio, then PDF Estates can assist. We will source your first property, using any requirements that you give us. We can fully research areas, properties, and your target rental market. We will find properties that fall within your budget range, and we can even provide you with advice on how to finance your purchase. Using our full management services, we can also source tenants for you and deal with everything from rent collection to regular safety checks. We will even deal with any unforeseen problems and can assist in chasing late rent payments.
The first step in building a property portfolio is to buy your first property and to find tenants.
How To Build A Property Portfolio Up
After you have bought your first property, and it is returning yield, you should consider how to build your property portfolio even further. Financing is usually the biggest problem when it comes to buying a second and additional properties, but it may be possible to use any equity in your first property. Buy-to-let mortgages and other financing options are also available, and once you have sorted financing, you can start to consider adding properties to your portfolio.
PDF Estates offers the same property sourcing and management services to those building up a portfolio as we do to first time investors. We can source suitable properties, and we can help with tenant and rental management.
Diversifying Your Portfolio
A diverse portfolio spreads risk. In the case of a property investment portfolio, this means that if you suffer tenant void in one property, then you will have other properties that will still be collecting rent and making money. It also means that you can spread risk across different types of property. Although some investors specialise in specific types of accommodation, such as student accommodation, if there is a lull in this market, it means that their entire portfolio could lose money.
Combining student accommodation with property that is geared towards retirees, or family property, means that a lull in one market will not have a detrimental effect on the whole portfolio. It is strongly recommended by most investment experts and real estate property investors that a person should diversify their portfolio as much as possible.
Starting A Property Portfolio With PDF Estates
At PDF Estates we are experienced landlords. We have built our own property portfolio and continue to help other prospective and existing investors build and diversify their portfolio.
Our services are ideal for those that want to know how to build a property portfolio, as well as for experienced investors. We can take on some of the load of sourcing properties and planning your investment, or we can take on everything from the sourcing to tenant management and rental collection. Contact us today to discuss your existing investment and to see how we can help improve your portfolio performance.