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Scaling your Property Portfolio - Michelle Niziol
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Scaling your Property Portfolio

Looking to scale your portfolio? 
Here’s some top tips for seasoned investors…

Sometimes even seasoned investors need guidance, help and assistance, particularly during a time of crisis and uncertainty.

Unlike the last recession driven by the property market and the financial crisis, this time around the market looks very solid. Banks have enough funds in their reserves, the demand for buy to let is still high.

 

Where is the best place to invest?
The Best place to invest at the moment is where you get all the solid fundamentals – major employers in the area, high demand for rental property and good rental yields. City centres and satellite locations – where you’re getting the benefit of the ripple effect – are a great option.

 

Diversifying your portfolio

spreading the risk across different investment properties is a smart move for investors. Even if you experience issues with one property, formants of other properties in the portfolio can provide damage limitation.

 

So what diversification strategies should you consider? 

Firstly, it’s worth looking into other asset classes within the property, such as HMOs and semi commercial properties. HMOs offer very high rental yields and semi commercial investors benefit from saving on the additional 3% stamp duty surcharge.

Secondly, is simply a geographical one. The location of your rental property is key and some UK town and cities perform significantly better like the regions outside of London and the south-east.

 

Mortgages

It could be a great time to expand a property portfolio. Major buy-to-let lenders have launched new products such as The Mortgage Lender, which has increased its loan-to-value (LTV) from 65% to 75% on all buy-to-let (BTL) remortgage products. Castle Trust Bank has recently unveiled a range of buy-to-let (BTL) products up to 75% loan-to-value (LTV), with instant terms available from the lender’s BDMs.

 

 

Property prices

New data from GoCompare reveals that the North of England offers some of the most affordable property for buy-to-let investors who are considering expanding their portfolio. The study shows that Burnley in Lancashire topped the chart as the cheapest place to buy at this price – although it does depend on how big a house you’re looking for. 

A flat in Burnley would cost buyers just £58,895 – the cheapest home to buy in the whole of the UK. However, buying a detached property in the area will set you back £162,429 – though this is still cheaper than anywhere else in the country. 

 

 

Investing through a limited company

Rising numbers of landlords are choosing to register as a limited company to manage their portfolios, as BTL investment is not as profitable as it used to be. So, for some, incorporation may be a wise move.

However, there are some key differences. When the limited company owns the properties, the company also owns the profits – so landlords will probably have to pay income tax on any money they’re paid by their limited company.

 

*Content courtesy of Property Investors*