Unfortunately, there’s no set formula when it comes to building a property portfolio in the UK. However, there are several things you can do to increase your chances of success. To help you build a property portfolio that will not only impress, but also is easy for aspiring property investors to understand, we explain below how to build a property portfolio in six straightforward steps. Unsure how to build a property portfolio? Our six simple steps to building a property portfolio can help. From keeping your finances in order to not forgetting about the key needs of your tenants, these straightforward stages form the foundation of any good property portfolio.

Identify your key goals

Every property investor should set out key goals before building a property portfolio. Whether that is capital appreciation, a steady passive income, or to make profit from business activities that depend on the property, it’s important to have a core aim in mind going forward.

Stick to your budget

When you find the right investment property, it can be tempting to go over budget.

However, it’s important to remember investors just starting to build their property portfolio may be unaware of certain costs aside from mortgage costs and stamp duty. These can include legal and land registry fees, so it’s vital that you have a cash buffer to help cover unexpected or emergency outgoings.

Instead, it’s best to put forward a lower offer for the property and even if it is rejected, you can continue looking for a more suitable opportunity within your budget.

Do your research

Choosing the perfect property investment requires constant and in-depth research. First and foremost, you need to identify your target tenant, whether that’s single professionals, young families, or students.

From here, you’ll need to tailor your property research accordingly, ensuring you choose a property that lends itself to the needs of your preferred tenant in terms of location, space, facilities, and nearby amenities. 

With the right tenant, you can limit void periods (where the property is vacant of tenants), helping to increase your returns while also minimising the creation of unnecessary property listings and negating the need for new tenant administration.

Start small

Starting small always make sense when it comes to investing – especially if you want to limit potential risks. Begin with just one property investment and focus all your efforts on ensuring it’s properly ran and maintained.

Furthermore, you can also make your first property invest more manageable by opting for a property in your local area or obtaining support from a third-party property management service. This can help you to understand the extent of your responsibilities as an investor and landlord.

Walk before you run

Even if you have the budget and research to support a large-scale property investment opportunity, growing a sustainable property portfolio typically takes time.

The market can also be quickly and heavily affected by economic changes, so it’s crucial you invest with caution.

Have an exit plan

While building a property portfolio until you have a steady, passive income is often the end goal with property investment, it’s always wise to have an exit plan.

Regardless of whether you want to wait until you’re ready to retire then sell your portfolio or pass your investment onto a family member, exit planning can help you to determine the best strategy that works with your property investment goals.

Explore your property investment options

Keen to build a property portfolio with support from an experienced and highly-knowledgeable team of property investment professionals?

At The Mistoria Group, we offer a wide range of property investment services to help our clients take their first (or next) steps.

Regardless of whether you want to grow your existing property portfolio or start from scratch, we can help you to find a wide range of profitable and lucrative HMO (Houses of Multiple Occupation), BTL (Buy-to-Let), and student accommodation investment opportunities.

If you have an enquiry or want to find out more about our services first, you can also send in an exploratory email to info@mistoriagroup.com. Alternatively, our online contact form can also be used to get in touch with our team and help us learn more about your property investment requirements.