Key Insights for Building a Solid Property Investment Portfolio

Nov 9, 2018 | Purchasing Property

If you want to be a successful, full-time property investor, or you simply want to secure your retirement income for the future, you need a solid property investment portfolio that aligns with your financial strategy and goals.

Property Investment Portfolio—the Benefits 

The most obvious reason for building a property investment portfolio is the returns you can generate over time. Multiple income streams can prove lucrative, and there’s the potential, done the right way, for passive income. Having a property investment portfolio lets you:

  • Generate regular rental income that you can invest elsewhere;
  • Accumulate capital gains and tax deduction benefits;
  • Invest in a legacy for your family to inherit and diversify; and
  • Reap greater profits in possibly less time than you’ll accumulate via other investment means such as stocks and shares.

What’s more, it’s fairly easy to get started in property investment, even with little experience, making it a great choice for younger people looking for creative ways to generate a stable income.

Building a Property Investment Portfolio the Right Way

Assess your borrowing capacity – This ensures you know your limits. It’s easy to get carried away, but you must remember that you’re buying a property to profit from, not to live in-always invest with your finances in mind. You can to get you started.

Network– Get to know who’s who in your chosen real estate area. The right realtors or property managers can alert you to good deals and help you find the best properties. They can also keep you updated on the market conditions, helping you make the right decision in terms of entering the property market in a specific area. You can also keep your finger on the pulse through where we regularly post articles on what’s happening in the Australian property market.

Choose properties wisely – Decide if you’re looking for a house or an apartment. They both come with benefits and drawbacks and picking the right one will depend on your short- and long-term goals. As apartments are generally more affordable than houses, buying one will help you get on the property ladder quicker. However, as land values generally appreciate better over time, house purchases can make more sense in the long run. Therefore, picking which property type to buy will depend on your goals and strategy.

Diversify – Market conditions change frequently across Australia. Profits and demand may fall in one area but remain stable or increase in others. As such, having properties in multiple areas is a good way to ensure that your portfolio remains profitable. You could also diversify in terms of the kinds of properties you have as demand can fluctuate across property types as well.

Assess your performance frequently – It takes time to build a solid property portfolio. Make sure you have an eye on how your investments are progressing and make adjustments if necessary. Performance assessments also makes it easier to plan your finances strategically and decide on monthly, annual, and longer-term goals.

Start while you’re earning money elsewhere – Having a stable source of income such as a full-time job or a profitable business takes the pressure off and gives you more time to plan your property purchases. This also means that you can better fulfill your financial obligations such as the repayments and other fees associated with purchasing property. Since you’re not financially pressured to enter the market right away, you can focus more on assessing your situation and goals, helping you avoid mistakes. Getting into property investment is not something that must be rushed after all.

Employ a property manager – Property managers are skilled individuals who can handle the day-to-day running of your property portfolio, and they often have a wide range of beneficial contacts you can use for building and maintaining a solid property portfolio . They’ll take care of time-consuming, property-related tasks such as preparing your properties for viewing or rental, checking health and safety compliance, and even processing and providing updated financial statements. In turn, you’ll have more time dedicated to maintaining and growing your property portfolio as a whole.

How We Can Help

We at Clever Finance Solutions are specialists in multi-property investment portfolios and provide a range of loan services to put you on the right property investment track. We know what it takes to achieve success in this field and will work with you to get there. We also offer valuable guidance and assistance to help you make the right financial decisions. Get in touch with us today and let’s start building your financial dreams.


Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Recent Blogs

Navigating the Australian Property Market as a New Investor

Navigating the Australian Property Market as a New Investor

I’ve had the pleasure of assisting many clients in taking their first steps into property investment. One common concern I often come across is the challenge of saving up for a deposit. The good news is there are alternative paths, especially if you’ve been a property owner for some time. The equity in your existing property can serve as a valuable resource for your initial investment, potentially allowing you to enter the market without using your savings.

read more