It seems like there is a new story emerging in the media about the latest financial failing of banks on a daily basis. As a result, many people are choosing to remove their funds from their savings account and invest them in other ways. One way a lot of people do this is by investing in property.
Creating a portfolio of properties can be a great alternative to a pension, providing you with an income both now and when you are older. You could renovate them and sell them on, or retain them and gain a rental income. If this is something you would like to pursue, this post includes some top tips for helping you manage your property portfolio.
Start small
If you are just starting your portfolio of properties, it would be unwise to jump in with a run-down manor house that sets you back hundreds of thousands. While you may have enthusiasm, this challenge will simply be too much for your first undertaking. Instead, start small with a compact apartment or house. This will be much more manageable to renovate, still providing you with a sizable return. Once you become more experienced, you can gradually work your way up to larger properties.
Take advantage
Savills recently predicted that house prices could grow by as much as 25 per cent by 2018, as the economy continues to strengthen. This means that now is the perfect time to invest in property, when the prices are lower. By doing so, it is likely that you will receive a considerable profit on your investment should you decide to sell it. Taking advantage of the economy’s current state can benefit you in the long run.
Have a reliable team
Buying a property can be a lengthy process, involving many different parties. If you are looking to create a serious property portfolio, it is worth pre-arranging a legal team to help you through all of the purchases you will make. Using a different solicitor for each property you buy could make the transaction longer. Keeping all of your dealings with one firm will make managing your properties easier. This will be essential for minimising your stress levels.
When it comes to choosing a legal team, you should always use a reputable, professional company that specialises in property matters. Companies like Square One Law would be an ideal choice as they have a team of property lawyers that have all the knowledge and expertise needed for smooth transactions, as well as offering help with property management.
Look for bargains
One of the easiest ways to increase your profit margin when selling a property is to buy cheaply in the first instance. Buying new builds before they are constructed can come at a discounted price, while houses that need a bit of TLC are also cheap to pick up. Whatever property you go for, make sure you do your research before you buy. If a property seems too good to be true, chances are, it probably is!
For more information, take a look at MSN’s guide to finding a property bargain online.
