How to Build A Sustainable Property Portfolio

05 Nov 2021

At Hot Property, Brisbane Buyers Agents we help potential homeowners navigate their way through the property market to build on their existing assets. 

 

Building a property portfolio is similar to planting a garden: you want it to grow into a sustainable patch, you will need to consider various factors. Building a successful property portfolio is like nurturing this garden. As a potential investor, you will need to consider what will get you the best portfolio.

 

When planting this garden,  you want to build something that will provide you with fruit and vegetables all year round – not necessarily in one particular season. At Hot Property Buyers Agents, we use this same philosophy when it comes to property investing in Brisbane. Your portfolio should have diversification to be able to offer sustained return for the long-term, all year round.

 

What is diversification?

When we talk about diversification, we understand that this  means several things: different locations, property styles, and also the age of the property. Considering these factors can enhance the diversification within your portfolio.

 

For example, if you only purchase brand-new property in your portfolio, then you’re really only ever relying on the organic growth of prices in that area. It’s very difficult for you to add value through cosmetic renovation or improvement in order to manufacture equity.  If you read through our property stories page, you will see the large range of property styles, locations and budgets we obtain for our clients. 

 

‘Pick the worst house in the best street’ mentality

The one thing I have learnt is that you can renovate an  older house in a good area, but you can’t move a nice house out of a less desirable area. So, as a buyer, you need to ask yourself:  are you buying in the right location for sustainable long-term growth and rental demand? 

 

Hot tip: avoiding seasonal areas or mining towns!

 

Demographics 

At Hot Property Buyers Agency, we know that a potential buyer should  consider the changing demographics of an area: does it have potential to evolve and grow, or will it stay stagnant?  As experts in the Brisbane Property industry, we know that if a property doesn’t gentrify with the area, the rental potential will decline,  and the area growth will be affected as well!

 

Maintenance

The final point on building sustainable property portfolios is maintenance. So, once you have reached a healthy number of properties in your portfolio, we recommend keeping them well-maintained. This includes ensuring that you get top tenants, strong valuations and can sell easily to divest of a property within your portfolio. 

 

Do you need a Brisbane Buyers Agent to help navigate building your dream property portfolio? Contact the friendly and professional team at Hot Property, the leading Buyers Agents in Brisbane.


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