A Mini Guide to Growing a Property Portfolio

Getting into the property business is a major goal for many people. But, if you don’t know anything about the sector or the kind of investments you should be making, getting started can seem a little daunting. In the UK, the number of households living in the private rented sector in the UK increased from 2.8 million in 2007 to 4.5 million in 2017, making the industry a very lucrative business.

Growing a successful portfolio isn’t easy. Although you can make a small fortune from your properties, it does take a lot of hard work, planning and dedication before you can reap the rewards but there is no reason why you can’t give it a go. Whether you’re looking for a way of living more comfortably with additional income or you’ve always been interested in property, you must be open to learning about the trade to make the right investments.

In this blog, we explain all you need to know about growing your portfolio.



What is a property portfolio?

First of all, you need to understand exactly what a property portfolio is. Creating a portfolio means purchasing or building a property to let it out to tenants or sell it on. Growing a portfolio is a way to generate a significant return and turn your efforts into a full-time career or sizeable income generator.

You don’t have to stick to just one type of property. Your portfolio can be a diverse range of houses within your local area or across the UK. Once you have a good grasp of the industry, it’s easy to build your property portfolio in just a few years.

How can you start a property portfolio?

Before you go charging into your first property project, you need to learn about the industry and map out your goals as an investor. Taking things slowly is much less of a risk and that way you can learn from any mistakes you experience along the way.

Here are some of the steps you take to build your portfolio:

Identify your goals

The first thing you need to think about are your goals. Do you want to build a portfolio of family homes, swanky apartments or something else? Also, are you starting your portfolio for sustainable income or for capital appreciation? Your answers to these questions will determine your first purchase and how you go on from there.

You cannot go into these types of ventures with no plan in mind as the risk is too high. Instead, think carefully about your goals and don’t be afraid to ask for advice along the way.

In order to start on the right foot, you need to have your goals and priorities in place from the very beginning. Read up about the property process, get financial advice and speak to established letting agents. Too often prospective property investors try and go it alone, only to fail miserably. Don’t be like them. Seek advice, listen, and learn.

Know your demographic

Before you make an investment you must have a demographic in mind. Who are your tenants likely to be? Having an idea of who will be living in your properties will provide greater insight into the type of properties you need. If you want to be a landlord to families, then purchasing properties close to schools and family-friendly amenities will benefit you, whereas properties close to the city centre are more likely to attract young professionals. The more you know about who lives in the area you plan to invest in, the better.

Start small

As exciting as starting your portfolio is, you must start small and slowly. Make sure your first investment is easy to manage as you’ll learn a lot. Generally, it’s not recommended that new investors start off with multiple properties, especially when they’re new on the scene. Start off with a solid investment that you can put all of your energy in to before moving on to your next property. Remember that there is no rush.

If you’d like to build your own house from scratch and create more of a project for yourself, you need a professional architect by your side. At Integrated Design & Associates, our team will support your build by designing and planning your property to ensure that it’s safe and your ideas come to life. Get in touch today and find out more about our domestic services.

Stay local

You know your local area so this is a great place to start. Your property portfolio should be full of great investment properties and starting in your local area means you know exactly which areas are best and the type of tenants you can expect. You can also keep a better eye on your local property market and oversee any problem easier if the house is within your vicinity.

In addition to the local knowledge you’ll gain, sticking to one area may also enable you to save money as well, as you’ll be in a position to negotiate fees and costs if you use the same contractors, agents, brokers, etc. for all of your properties.

Be a great landlord

If you’re a great landlord this will improve the quality of your tenants. Go that extra mile and it will pay off. Nobody wants to live in a property that’s run by an inflexible landlord. They’ll reward you by speaking positively of you to family and friends and will stay in your properties for longer, which means you’ll avoid the dread void periods that ruin many a buy-to-let business.

Maintain good communication with your tenants without being too invasive, set fair rental prices and your tenants will be happy. Unhappy tenants mean that your properties are more secure so you are more likely to have a secure income long-term.

Integrated Designs & Associates: Fulfilling Your Architectural Needs in Birmingham

Need a professional architect for your next project? At Integrated Designs & Associates, our team of experts are on hand to providing expert planning and design services for your domestic or commercial build. We’re proud to say that the quality of our work has led us to become one of the most trusted architectural companies in the West Midlands. From start to finish, our highly experienced team will talk you through the process to bring your vision to life and ensure that planning regulations are followed.

Having expert architects by your side is one of the most important parts of building a property. We’ve worked across the UK, creating beautiful homes and unique designs that create amazing finished results. We can also help with geotechnical engineering, structural engineering and more. Hire a professional architect that you can trust today. Get in touch with us for more information.