3 Ways To Accelerate Your Property Portfolio Growth
Is your goal to quickly build a property portfolio that gives you a good return every month?
You may already own an investment property and want to expand your portfolio, or you may have a portfolio, but it isn’t quite meeting your financial goals. Whatever the case, we have some ways you can successfully accelerate your property portfolio growth without spending 20 years doing it. You don’t have to be a millionaire to have a portfolio. Investors can start with £50k, generate enough profits to purchase a second investment, and build it up from there. A common problem people will have when they want to build their property portfolio is the returns. The more properties you own, the more hassle they are to keep, right?
We speak to different levels of investors. Some are new to investments and others have been in the game for decades. A common problem we hear from clients with a property portfolio is that their properties were generating a good income years ago, but the growth of their capital has plateaued. There are ways to boost your portfolio’s performance and make your money work harder for you.
With these straight forward tips, you can boost your property portfolio’s growth and generate bigger returns without breaking the bank or taking up all your time.
1. Fully-Managed Investments
‘Fully-managed’ is the term used for a modern investment property model. Similar to traditional property investment, you own the deeds to the property, but it is managed by a professional company on your behalf. In return, the developer gives the following for a predetermined number of years; a) the investor receives a guaranteed NET yield, and b) the management company gets a fair return for their services.
This is gaining popularity because it eliminates expensive and unexpected management costs that the investor would otherwise have to deal with themselves and takes away any landlord responsibilities from the investor, who may already be busy managing their other properties.
You can invest in a fully-managed property by contacting developers of new or upcoming residential developments. However, it is best to get in touch with a consultancy that specialises in fully-managed investments, as they will know the reputable developers and have a better relationship with them. Thus, they will be able to negotiate better investment terms, such as higher NET yields, discounted purchase prices, longer investments and buy-back options.
Sterling Woodrow does their due diligence on every developer and development to ensure that investors get a great return, no matter what. Since these investments don’t require any work from the investor, you can invest anywhere in the UK. At Sterling Woodrow, we are experts in hand-picking investments in the most lucrative areas across the UK, giving clients the chance to take advantage of flourishing property markets in different areas.
Investing in a fully-managed property can accelerate your property portfolio by giving you a hands-off return. You can add a new property to your portfolio and still have enough free time to focus on other commitments, without worrying about late rent or that you need to pay for a broken boiler.
You’ve probably heard this a hundred times before, but there is a perfectly good reason – it actually works! A diverse property portfolio is one that has a variety of different properties in a range of sectors. When you diversify your portfolio, you are spreading risks and all your eggs aren’t in one basket.
Invest in growth sectors that are performing better than buy-to-let. New investors will have the misconception that buy-to-let is the safest sector for short-term investments because it is more familiar and widely recognised. However, as the market is so volatile, other sectors have proved to be more lucrative. These sectors are known as commercial, and include the Care Home sector, the Purpose Built Student Accommodation (PBSA) sector and the Hotel sector.
Here, at Sterling Woodrow, we cover a range of sectors; from residential to commercial to overseas. One thing we help a lot of existing clients with is diversifying their portfolios. We have a lot of long-term clients that have a goal similar to yours!
If the housing market were to crash or if you have ever been through void periods where your property is without a tenant for a few months, having a care home, PBSA or FHL in your property portfolio will pick up the slack. It works almost like a buffer, just in case your other investment doesn’t perform well. Even if your investments are working well, it’s even better as you get another source of passive income.
3. Short-Term, High Return
Turn-key investments are perfect investments if you want to quickly boost your property portfolio’s return. They are properties that are already fully operational. Unlike off-plan, you don’t need to wait months until the development has been built. There are no possibilities of delays or the property not being built. Turn-key investments provide you with a 3-5-year investment with high yields.
Turn-key investments are quite common with hotels. Hotel investments are known for providing a high, hassle-free return anyway, so it’s a win-win. There are also student developments, buy-to-lets and commercial offices that are turn-key investments.
We have some turn-key investment opportunities on our website. It is best to arrange a complimentary phone consultation with one of our portfolio managers as soon as you can, because turn-key investments are amongst the most popular investments we offer. They work on a first-come-first-serve basis, so once all the units are sold you will have to wait for another opportunity like this to come again.
Short-term investments are great for giving an investor a great ROI in a short period of time. As a result, you will have a property generating a healthy 65% profit in just 5 years.
We also cater to those types of investors as we have long-term investments with assured returns. If you want to discover more or see what your options are, don’t hesitate to contact us!
At Sterling Woodrow, we pride ourselves on helping new property investors get a solid start in the market and are happy to speak to you about your long-term goals and ambitions in property investment.
We also work with experienced investors to help them increase the value and profitability of their property portfolios.
To book your complimentary property investment consultation with one of our senior portfolio managers simply click the button below and complete the short form and we will call you back at the appropriate time.