A good business is always growing and expanding – and looking for ways to improve your investment properties are no different. You are already an investment property owner, so the hard part is over. Growing your investment property portfolio should be a fun, lucrative way to build your business.
In this article, I will be sharing some ideas that you should keep in mind while growing your investment property portfolio.
1. Leverage the equity growth that you have.
If you already own one or more properties, you can speed up your portfolio’s growth by leveraging the equity that you have in your properties. Saving deposits is often a tedious, slow process. However, if you can tap into the wealth of your current portfolio and leverage that to buy more properties, then you can grow your investment property portfolio much faster.
Additionally, if you have a home loan on the property you live in you are best to pay all your extra money into the offset accounts and borrow all of your deposit money plus costs for your next investment purchase. It will minimize the non tax deductible interest you are paying.
2. Consider expanding to new markets.
Expanding to new markets may seem like a daunting idea, but expanding your investment property to new markets can increase your profits in ways that your local market may be unable to.
For instance, if you have found that the local market has stagnated – or if there isn’t anything available locally that suits your needs– you should think about looking into properties elsewhere. There are properties worth investing in all over the country, and being brave enough to find them can exponentially increase your profits.
3. Increase the value of your properties.
Carefully planned improvements can be an excellent way to perk up property values. Moreover, it may also help with quicker tenant occupancy and long-term retention of good-paying tenants. Putting some effort into making the property more aesthetically appealing, comfortable, and tech-savvy to the tenants can work wonders for your property’s value. Moreover, it can also help you increase equity, which you can then leverage to buy more investment properties.
4. Diversify your investment property portfolio.
You should never put all of your eggs in a single basket. This also applies when it comes to real estate investments. A successful investment property portfolio is not only large but also diverse.
If you have only invested in one type of property and the market drops, you run the risk of losing money. However, diversifying your investment property portfolio will help provide you with some cover if one market crashes. You can expand your investment property portfolio by investing in various locations and diverse investment property types. This can significantly help alleviate risk.
The Bottom Line
Let me help you climb up the investment property ladder. With my expertise, I can help you explore the best possibilities for your current financial stage and investment property needs.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
Additionally, you can follow him on Facebook