Growing an investment property portfolio

When considering growing an investment property portfolio, investors can either use more of their own funds to buy further property or look to previous investments as leverage.

A property portfolio can be created organically over time, taking equity from previous investment to fund the next purchase.

To do this, the first thing an investor who’s planning on growing their portfolio should do is get back in front of their mortgage broker.

Whether you’ve owned another property for 1 year or 10 years there may be the possibility of releasing equity.

When scaling your investment portfolio it’s sensible to diversify with each purchase.

Whilst you might have purchased a property in a certain location that’s delivering strong returns, the market will have likely moved on meaning the same success isn’t guaranteed. Furthermore, buying in the exact same location will mean your investments only offer the same potential and risk.

Diversifying by buying rental investments in multiple locations will not only mitigate risk but will present new opportunities too.

Tips for growing a property portfolio

Here are some tips for a property investor looking to grow their portfolio:

Consider the best way to finance further purchases by looking into leveraging your existing property investment(s) – talk to your mortgage broker
Diversify your portfolio by investing in varying locations – a mixture of locations will offer a greater opportunity to achieve capital appreciation and mitigate risk
Work with reputable and effective property management companies to help manage your portfolio
Engage with property investment experts to help you identify the most suitable opportunities