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What Is A Property Portfolio?

A property portfolio, put simply, is a collection of properties all owned by one individual or a company. Property has always been a great investment. In today’s age, when millennials are torn between renting and buying, property portfolios are becoming increasingly popular. Mistakenly seen by some as a get-rich-quick scheme, building a property portfolio is no mean feat. It takes time, dedication, and a serious amount of money.

Owning one property outright doesn’t give you the same financial freedom a property portfolio does. Owning multiple properties is a great way to keep cash flowing even when you retire. Most people who have a portfolio of properties earn a decent amount from rental income. Of course, some of that has to go to the portfolio manager and for upkeep, but the rest is theirs.

Do You Need A Property Manager?

Managing a property on your own is fine. As the landlord, you’ll have to see to your tenant’s concerns and be available at all times. This becomes tricky when the landlord has multiple properties or has a full-time job too. Then it becomes necessary to have a company manage your properties for you. A manager will deal with tenants directly, collect the rent, and handle any maintenance and repair issues. If you have multiple properties or don’t live near to your properties, a management company is a good idea. These companies are expensive, however. So you’ll need to make sure you are making enough money through your various income streams to cover the costs.

To Loan Or Not To Loan…

Finances can always be a subject of contention, but no financial issue is as contentious as loans. Some people see them as helpful little handouts to give you the boost you need when you’re strapped for cash. Others see them as the quickest way to get yourself into some serious debt. When you’re building a property portfolio you’ll need a large amount of money. Obviously, you need to own the property you’re going to live in. But you’ll then need to put a deposit down on another property. If you are renting this property you need to make sure that the rental income is greater than the monthly mortgage repayment. Otherwise, you’ll be out of pocket. If you’d rather buy outright or need help with the deposit, a loan could be a good idea. has information about which loans to go for, how much you can afford to borrow, and how the process works.

Where To Buy?

Do your homework and buy in an area which has maintained, or increased its value over the years. Certain neighborhoods will always be expensive and always sell well. Others won’t, but there may be more people looking for housing there. Research thoroughly before committing to a property. Have a look at rental websites and get a feel for what you can charge in which areas. Remember, you’re buying this property to make money, not be a forever home for you and your family.

Co-founder of zenruption

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