At might also be worth thinking about making small improvements to your property when necessary (repainting walls, fixing the garden) as these will help keep your tenants happy or attract new tenants when your old ones leave. Also don’t be scared to increase the rent when there is a market to do so.
Step seven – use your equity to expand
The final step is to use the equity from your first investment to purchase a second one. Some people choose to renovate their first investment property in order to create more equity, however I always say that if you are purchasing an investment property in the right area, then it will grow in value automatically.
Property is a long-term investment, meaning you may not see strong capital growth in the first few years of owning your home. For this reason, I recommend you hold on to your investment properties for as long as possible, renting them out and using the equity in them to purchase additional properties and expand your portfolio. In 15-20 years, your investment should have increased in value enough that if you need to sell it, you will make a great return.
Our aim at Investor Assist is to take the guess work out of deciding the best place to buy an investment property and how you can best expand your portfolio. Which is where our team of Property Investment Specialists come in. They’ll help you understand the market, how to spot the golden opportunities and how to leverage your hidden income stream to grow your portfolio.