Determine your goals

There are many reasons you might want to start investing in property, it could be that you’re looking for a safe way to invest your money, you may have an interest in property development, or you’re looking for a passive way to generate more income.

Whatever your reason for wanting to build a property portfolio, be sure to start by determining what your goals are. This could include how many properties you want to own in the next 10 years, how much income you are hoping to generate monthly from renting the properties out, or how much profit you want to generate from reselling properties in the future.

When creating these goals be sure to consider how much time you are willing to give up, do you want to take a hands-on approach or is your aim to employ someone to manage the properties for you? Also, consider the type of properties you want to own, do you want to purchase new build houses that are ready to move into, or are you leaning more towards period properties that are likely to require some renovation?

Finances

Whilst a great way to invest your money, the initial outgoing of purchasing a property can be a daunting prospect. This isn’t the only thing you need to take into account; there is also the matter of stamp duty, solicitors fees and potentially furnishing or renovating a property. Speaking to both a financial advisor and a mortgage advisor is a good place to start as they will be able to advise on what is affordable based on your budget. They will also be able to give you more information on buy-to-let mortgages, crucial when investing in a property that you don’t intend to live in yourself.

Do thorough research

No matter how eager you are to get stuck in, thorough research before purchasing a property will save you in the long run and allow for quicker purchases in the future.  

The area where you invest will have a big impact on your success so be sure to do extensive research on the demographics of the area; are people likely to rent there and if so, how much are properties currently being rented for?

It’s also helpful to research what people look for from a landlord and property; do people expect furnished properties, do they expect regular contact? Being an attentive landlord will lead to greater success with existing tenants which in turn will allow you to continue growing your portfolio.

Start small

As exciting as it can be, it is always advisable to start with one property. As this is a new venture it is good to put all your focus into one property and allow you to refine the process and see what goes well and what you could improve on or do differently next time. Some landlords often choose to purchase their first property close to where they live themselves, so they are able to check in easily.