C&G’s Guide to Building a Property Portfolio

Thinking about expanding your portfolio and building more wealth? Strategic property investment can be a rewarding strategy that satisfies both your financial and lifelong goals. In this latest C&G blog we unpack the basics of establishing a successful property portfolio. Happy investing!

Using your Equity

A fairly common property investment strategy is the leveraging of equity accumulated on other assets. Equity is the difference between your asset’s market value and the remaining balance on your mortgage. Most lenders will assess equity holding instead of asking for a new deposit. While your income and living expenses will also be considered, strong equity will give banks confidence in your loan application. If you’ve owned property for a considerable amount of time and it has increased in value, you’ll be in an excellent position to negotiate. Chisholm and Gamon have a detailed blog unpacking property equity, and will be happy to provide you with a complimentary market appraisal to determine your asset’s potential current value. 

Quality Over Quantity

Building a real estate portfolio is a long-term investment, and you’ll want to purchase high performing properties that will increase in value. You may have heard the terms ‘capital growth’ and ‘rental yield’ as portfolio strategies. Capital growth will generate more cash flow over a longer period of time, while rental yield refers to your return on investment as a percentage of the property’s value. While most investors strive to achieve both outcomes, it may be wiser to focus on one strategy to gain a higher return.

Hand-pick your Properties

A well-defined portfolio strategy means you will make better decisions when choosing which properties to purchase and invest in. Whether you are aiming for capital growth or positive rental yield, you’ll need to take into account property management fees, council rates, location and Owners Corporations fees amongst other considerations. Market conditions will also inevitably change, but a set of well-performing properties will ensure you remain a confident investor throughout.  

Expanding your property portfolio is a big, exciting endeavour. Chisholm and Gamon’s sales team have years of experience handling residential and investment sales across Bayside Melbourne. We would be delighted to answer your questions about current market trends, help you to reach your real estate goals. Reach out today!