If you’ve found success with your first real estate investment, you may consider sticking with the one property as a safe bet. This is a common mistake that many property investors make, as they forget that the market is always changing and that one property that may be doing well now might not be lucrative in the future. To prevent you from making a loss, you need to consider expanding your property portfolio by investing your savings into another profitable piece of real estate.
To help you expand your portfolio and achieve success, you should take a look at the following investment tips which will help you grow your real estate collection.
Research property types
One of the first things you need to do is to search the different property types. This includes residential, commercial and industrial real estate which all offer lucrative opportunities for investors, however, the former is the better options for inexperienced investors.
If investing in real estate, you should definitely consider Buy to let, as this is one of the most profitable markets in real estate, although there are several different options within this category. For more information on the different types of property, you should take a look at the RW Invest buy to let guide which discusses the advantages of investing in new builds and off-plan in comparison to refurbished properties which cost a lot to fix.
Invest at the right time
Before you go ahead and jump straight into buying the first property you see, you need to take a look at the state of the market and see when is best to invest. For example, during a recession house prices experience a dip, which is excellent news for investors as they may be able to afford a property where they couldn’t before. This doesn’t mean that you should only invest when prices are low, as you may be waiting a long time.
If you do decide to buy in a market downturn, you need to consider the risks, as you need to make sure the property will remain sustainable throughout the low period. You should also consider the property’s returns, as you should still be able to turn a significant profit during an economic decline. This will work if your property is located in an area with high demand, as you can expect to receive a regular monthly income in the form of rent. You can also benefit from capital growth, as once property prices surge again, you can sell the property for a lot more than you bought it for.
Remember your tenants
The final thing you must not forget is your tenants, because if you don’t fill your property then you will not receive your expected returns. While this may seem obvious, some investors spend so much time trying to boost their portfolio that they forget about the most important part – their tenants.
To generate interest, you will need to market your property effectively, which can be done quite easily online. Once you’ve received a significant amount of demand, it is vital that you conduct tenant screening which will help you find the right tenant for your property. If you don’t have the time to recruit tenants, then you can hire someone to do it for you or you may be lucky and already have property management included in your service. This will save you a significant amount of time, enabling you to focus on building a successful portfolio which will support you through retirement.