Increasing returns through expansion
Growing Your Portfolio
A property portfolio can provide you with a good combination of capital growth and regular income. However, no investment is without risk. Property investment could have more potential pitfalls than traditional financial investment. This can be countered by a sensible approach and proper planning.
Although there is certainly no guarantee that your properties will increase in value, on average, residential property in the UK has doubled in price every decade. On this basis the more property you own, the greater your eventual profit is likely to be - although this can only be realised by selling your portfolio. Costs of running a letting business will inevitably increase if you opt to grow your portfolio. However, as with any growing business, expansion should lead to greater economies of scale and improved efficiencies as you get to know your market and develop your own entrepreneurial style.
Aside from the financial risk that things don’t go to plan and you could stand to lose a significant amount of money, there is also the fact that your investment is somebody’s home. You must be sure that you are prepared to take on this responsibility before opting to buy more property. If you are unsure at this stage, consider discussing your options with an independent financial advisor.