How to start a property portfolio

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A property portfolio is synonymous to a business or it can be a hobby. But if you are starting a property portfolio to create wealth and good returns it has to be started with the aim of creating and running a property business; it is a more productive attitude. Just like starting any other business you need to determine: what you want to achieve, your available resource, the best way to navigate and how you will manage your new found business.

1. Where to start?
   First decide why you want a property portfolio. Is it for?
   • Capital gain
   • Additional income
   • For short term or the more distant future.
   • To be managed yourself or to place investments with others working for you.
   Once you know in which direction you are aiming it is crucial to determine your resources as this will affect your approach. Resources don’t just refer to finance, but your expertise, skill and financial, but also business contacts and other people that you would like to get to know but don’t know yet.
2. Set off in the right direction.
   Consider your options, decide what you want and write it down. According to research writing focuses the mind. Then ask yourself what property portfolio you want: do you want to buy and manage property yourself or delegate it to others?
   When starting it is best to have a portfolio of independent investments than one big investment that succeeds or fails. Portfolios have proven to deliver closer to your planned returns than when everything is tied up in one investment and you stand the chance of losing everything.
   The phrase money makes money comes from the ability to invest in a range of opportunities; the sooner you can have different investments the more robust your business. But be careful to not overstretch.
   If you decide to start the business with others make sure your aims and objectives are the same because if not it might cause a lot of problems on a later stage. It is true that two heads are better than one but it does have its challenges and risks such as different ways of thinking and goals, disagreements etc. Expect it and plan for it. Also, any business with more than one person needs managing and that includes a written agreement.
3. Do your homework
   Effective property investment depends on you knowing the market, being informed of property prices, costs and trends especially in the area you would like to invest in. Think what is happening in the area now and what could happen in the future.
4. Expect to learn every day
   Don’t think too much that you never get started. Remember businesses grow and change; you could always change your approach at a later stage. If your approach is right you will constantly learn more, meet more people and gradually your opinions will start to change.

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