Growing your Property Investment Portfolio: Our Guide to Get you Started
Are you an existing property investor? We know that taking the next steps comes with some serious considerations and different areas of opportunity to invest in.
But what are the options and what steps could you take to successfully grow your portfolio?
We’ve included here information that will help you begin your planning and consider just some of the options open to you.
Initial Considerations to Grow your Property Investment Portfolio
Among the areas for considerations are:
Is your company structure right for growing your property investment portfolio?
As your business grows, exposure to taxation increases and the risk that your own income tax rate could rise becomes a real risk. Not only that but as your business takes on additional finance and responsibilities, you and your business partners are exposed to additional personal risk. If you are releasing equity from your home and assets ensuring that this is correctly accounted for in your business should also be considered.
Financing your Growing Property Investment Portfolio
Financing your growth can be done in several ways;
Buy to Let Mortgages
Our cashflow forecasting service can help you understand your personal and business circumstances clearly and help you plan effectively.
Your Own Funds
Property Management for your Growing Property Investment Portfolio
Identifying the Right Opportunities
Read our blogs:
Moving into other Investment Opportunities
Commercial Buy to Let
Buy to Flip
Property Loan Notes
A property loan note is a means for developers to borrow money to finance their projects alongside finance from banks. The investor invests a sum of money in return for a fixed interest rate, for a set term. At the end of the term, the interest is paid and the original capital investment is returned. Terms typically run from 1-5 years, and interest rates circa 8%. Whilst they are not risk-free, property loan notes are considered to be first charge debts so in the event that a developer goes bankrupt, it is highly likely that the investment capital can be recovered. The interest earned will be subject to tax because it’s considered to be income.