- 6 December 2021
- Posted by: admin_gray
- Category: Property
Written by Sapphire Savvy Women Group
Creating a property portfolio essentially allows the money you put in, to grow and compound over time. Whether you have bought a house with little reno works needed, or maybe you’re taking some time sorting out a fixer-upper, the value of the home will increase over time resulting in a greater profit over time.
There are quite a few ways to expand your property portfolio and during this process you’ll need to be positive and focused. Aim to purchase your first investment property.
Many investors said that the first purchase is the more difficult one but after that the rest get easier from there. Much like having your first child! It does take a lot of work, but by the second, you become accustomed to the different needs and requirements and with experience you become a lot more relaxed!
Take your time before you decide on the property or strategy. It a good idea to start with BMV (below market value) priced homes. Need to know if you’ve been offered a good deal, or how to sell for maximum profit? Click now to access our award-winning property coaching program
Always remember that the longer the investment house is off the market, the more equity and money it will accrue. You can either sell the house and pocket the profits or borrow money against the equity.
Just keep in mind if you own another house that you will have two loans out and you want to keep your debt-to-income ratio comparatively low so that you will not have a lot of debt.
The best advice is this, keep a positive cash flow on all the properties that you purchase.
If you keep purchasing BMV properties and not the higher cost properties, this will give you more positive cash flow and more income in your pocket. That is a good way to keep income coming in and will result in the growth of your property portfolio.
You can invest money into the upkeep of smaller renovations which would help increase the equity in the home.
Also do not be afraid to consider a fixer upper house. Those houses usually are sold for less than face value since they need a little bit more renovations than a better kept house.
We talk more about the difference between cosmetic and structural changes in our free beginner’s guide to property investing. To Receive your FREE Complete Beginner’s guide to Property Investing today – sign up and get a copy sent to your email.
By completing the renovations to make the house more appealing, you are increasing the value of the home and making a profit in return for your hard work. Click here for a helpful article from Kempton express- key factors to consider determining if a fixer-upper is right for you.
EYES ON THE PRIZE
Always keep an eye on the property market. You can find an amazing deal on a possible investment property that way.
You can make a fixer upper someone’s dream home and the best part is you can usually find those for a fraction of the cost. People that buy these kinds of homes generally make an exceptionally good profit and as a bonus give another family their dream home!
Know when it’s time to sell up.
Keep your portfolio current and updated so that you can keep an eye on the increases or decreases that your potential investment property makes. Make sure that your tenants are keeping the property in a good condition and making their rental payments on time.
Also never keep a bad investment. Weed out the bad and just keep the good, and that should also help with keeping your portfolio current and up to date. This will you help you decide on what properties to keep and the ones that you want to sell.
These ideas are a great way to keep your property portfolio current and up to date! As a woman, I want to help you access the skills needed for you to begin your investment journey and enjoy the financial rewards of your work.
Join the Savvy Women Investor Academy today and learn the strategies needed, with training from experts and exclusive industry practices, to create an impactful property business- spots running out fast.