Growing your portfolio

PROPERTY INVESTMENT

Growing your portfolio

Often the roadblock to growing your portfolio is that your income isn’t good enough to make lenders want to give you more money, especially if you are younger. 

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Expanding your investments

First off – consult your plan

What do you want to get out of your investment properties? You should have made a plan when you set out on the investment road. If you didn’t, make one now. If you’re looking for your properties to provide you an income in the short term, you may need to hold off on buying more property and focus on increasing the yield from your current properties. After all, buying more property usually means more debt – which you’ll have to service.

Look at any properties that are holding you back

There are some types of property that lenders consider a bigger risk than others – tiny apartments and properties with more than three incomes are two of them. If you have this kind of property you could be restricted in the amount you can borrow.

Drive up capital gains

Look at ways to increase the value of any properties you own so you have more equity to borrow against. Don’t just wait for the market to do its thing.

Focus on equity

You might get higher rents from more expensive properties, but it looks better to lenders if you own more equity in lower quality properties – even if their rents aren’t as good.

Don’t own property just to own property

If your investments aren’t making you money, get rid of them. Look at low-yield properties which aren’t growing in value, and cull them.