Expanding your property portfolio in London whilst negating risk and capitalising on profit can be something of a daunting tasks. With 2019 set to offer some great opportunities to purchase properties in London at lower than usual prices, the time is now to be thinking about taking your portfolio to the next step.
But where to start, what to consider, and who to ask for help? Read on to find out more.
Identify your goals
When it comes to property investment, your first consideration should be why you want to invest in property and why you want to expand your portfolio. Are you looking to create stable income for yourself or are you interested in capital appreciation? Chances are that both of these things will be of interest to you, but knowing which one you want to prioritise will help you determine the best way forward.
Consider a one year, five year, and ten year plan of what you want and where you want to be in terms of portfolio size and the amount of income or asset value you want to generate.
Consider your tenants
If you want to expand your portfolio with the intention of letting several properties in London, then you need to have a good idea of who your tenants are going to be. Are you opting for the high end of the market? Or will you purchase property suitable for students or young professionals? Everything from property type, location, tenancy length, and price point need to be thought about and decided upon so that you can capitalise on renting and avoid any costly mistakes.
Then you need to pick the right tenants for your property which can be an arduous and difficult process. At D&A Group, we can help you by not only advising on what kind of properties and tenants you should consider, but we can also manage the rental process, ensuring that your tenants are suitable and that all runs smoothly during the tenancy period.
Manage it efficiently
As your property portfolio expands the chances are that you will need help in managing it. Everything from tenants, contracts, maintenance, and bills need to be taken care of in a timely and efficient manner. Of course, the bigger the portfolio, the more time this task takes and if you are someone who does not reside in London full time, or are busy with other business interests then you may run out of time to give your portfolio the attention it deserves.
In cases such as this, availing yourself of property and portfolio management services is the best course of action.
Be financially aware
What are your outgoings? Will they increase or decrease over the next 12 months? What if you need to carry out urgent repair works- do you have the cash on hand? These are all questions you need to be able to answer if you are considering expanding your property portfolio in London. You also need to consider if you need to secure financing for a second buy-to-let property in London or whether you need help with financing at all.
Location, location, location
Whilst properties in Kensington, Mayfair and Belgravia are always going to be worth a fortune, the initial investment may be out of reach for many. Instead, consider whether it makes more sense for you to look at locations such as South Kensington, Notting Hill Gate, or Bayswater- these areas are not only incredibly popular but they offer a great return on investment and a good yield on rental income.
D&A Group can help you with years of local experience- we know all the up and coming areas as well as where can offer you the best long or short term return on your investment. All you have to do is ask!
Monitor the markets
Over the last two years, the London property market has been in a constant state of flux and with the uncertainty that 2019 brings, this is set to continue. The impact of Brexit is set to have a big effect on property prices in the capital but this could present a great opportunity to snap up some superb property deals. Keep your eye on the local markets, what is happening with interest rates and inflation, and even currency rates- all of these will help you identify prime opportunities to buy property in London and contribute to your expanding property portfolio at the right time.
Be savvy
Don’t just buy property for the sake of buying property- be smart, be savvy, and invest wisely. Look for advice from experts wait for the right time to execute your decisions. London is not going anywhere and there will always be good opportunities for investment so don’t rush into anything you are not sure of, or if you are not convinced it is not the optimum time for your goals.
Don’t sit on your investments
Selling some of your property doesn’t mean you have to shrink your portfolio- after all it is not just about size, but value as well. Selling some of your properties to make way for bigger and better investments is an important part of your portfolios life cycle and should be something you look at on a continual basis. Upgrade, update, and expand through buying and selling, but make sure you are following expert advice and the movement of the markets before you make rash decisions!
Have an exit strategy
Do you intend on holding your portfolio indefinitely or are you waiting for an optimum moment to liquidise and exit the market completely? Knowing your end goal and how you will achieve it when the time is right is extremely important because failing to do so could result in costly mistakes.
Surround yourself with persons of trust
Do you have a good lawyer to help you reduce portfolio risks? A financial assistant? Accountant? Top-notch property management company like D&A Group? Your answer to these questions should be an unequivocal “yes”. Unless you are someone that is completely familiar with the local market, the UK legal system, finance and economics, and you have the time to give all of them due care and attention, it is better to surround yourselves with experts you can trust. Industry experts with local knowledge are your key to sure-fire portfolio expansion success.
Of course, enlisting the help of our team at D&A Group should be an important part of your property portfolio expansion strategy. Drawing on years of local knowledge and experience in buying, selling, renting, and managing property in London, we can guide you every step of the way.
