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Building a property portfolio

Real estate has traditionally been an excellent investment option. Not only does it generate passive ongoing income, but its value can also increase substantially over time. Assuming you have enough cash available to invest, a good knowledge of the UK property market and a solid investment strategy – or you surround yourself with the right team of professional advisers – it is possible to build a property portfolio in a relatively short amount of time.

Another major benefit enjoyed by real estate investors is diversification. Living through a global pandemic has encouraged many real estate investors to question how best they can reduce the risks that can come with investing. By purchasing different properties in different areas, investors can still gain rental income and returns from one property even if another fails.

What should you consider?

The first step you should take is assessing your financial status, in order to ascertain what method of investment suits you best (cash vs. debt).  You can read more about that process here.

You might have the cash necessary to build a UK property portfolio – what you may not have is the time to worry about the all of the details. Being a hands-on investor essentially means being a landlord and dealing with all of the burdens that role entails. In order to take a hands-off approach, you must hire an asset management company or family office to do this for you.

Enlisting an asset management company will of course add to your expenses, but is often crucial if you do not personally have the time to meet the demands of running a property portfolio. Our team has significant experience in working with a range of external advisers including asset management companies, tax specialists, surveyors, managing agents and administrators. Using our network, we can help you find one that best suits your needs.

However, it is not just asset managers you should consider surrounding yourself with. When building your property portfolio, you should also make sure you are supported by an experienced team of financial advisers, tax planners and property lawyers. Your team should diligently research the UK real estate market to discover the best cities, counties and postcode hotspots for property investment, look for the best rate of return, and certain areas of the UK will have different yields to offer.

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Looking for something else?

If you have questions we haven’t answered here, please contact one of the team for a no-obligation, initial conversation and we can take the first step in achieving your goals.