Given the current market, many landlords with just one property at the moment are considering making a move from managing just one property to potentially several properties, which can be quite daunting. Here are some helpful tips to help you mitigate any risks involved in further developing your property portfolio in Ireland.
Financial goals
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 maximise your return on investment. While this may not be your first time investing, you should apply the same due diligence and forward planning as your initial investment.
Walk before you run
When starting out it’s 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.
While many of you may be moving on to your second or even third properties, it is important to remember that just because you have successfully profited from one or two properties, that doesn’t mean you should let your guard down and assume it’s easy. Managing multiple properties brings its own set of potential issues. This is where a property management company’s services become invaluable.
Think carefully when choosing your additional investments. 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?
Cashflow
Owning a property portfolio is just like any other business, and like any other business, the most important thing is cash flow. 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? What if you have multiple empty properties? As unlikely as that is these days, it is always best to prepare for these things in advance.
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.
Advice
Should you need expert advice please don’t hesitate to get in touch with us here at KPM Group and we’ll be happy to assist you in any way we can.
