Making your first investment and moving from managing just one property to potentially several properties can be quite daunting. Here are some helpful tips to help you mitigate any risks involved in building your property portfolio in Ireland.
When investing in property the first thing to be sure of is your financial goals. Are you looking to get in and out quick or looking for something more stable and long-term?
These are important decisions to make as they will obviously have a big impact on where you decide to invest. It’s important to have clear and achievable goals in order to maximize your return on investment.
Walk before you run
When starting out its always best to start small. Invest in one property to begin with and learn what you can along the way. It’s not recommended that new investors take on a property portfolio with multiple properties straight away.
Think carefully when choosing your first investment. Would you rather invest in something local so you can keep an eye on things personally, or are you happy to go a bit further afield and enlist the services of a professional property management company?
Owning a property portfolio is just like any other business, and like any other business, the most important thing is cashflow. Simple things like rental incomes covering mortgage payments and other costs while still producing a substantial yield? What about periods where no tenant is present in the property?
All of these key metrics are important so keep a close eye on them. As your portfolio grows the data will become more and more important so keep track.
These are just some simple tips to help get you started on the road to owning a varied and profitable property portfolio.