The objectives of building a property portfolio are primarily to scale monthly rental income and to hold properties for capital appreciation. A property portfolio can be built in a number of different ownership structures such as individuals, partnerships and companies.

Investors need to consider the additional costs on top of the purchase price, for example, Stamp duty, agents fee, income tax and landlords insurance.

As with all investments, a landlord should consider what type of investor they are, and with this, what the investment goals are. For example, the length and level of the expected return on investment (ROI) will differ from person-to-person. A landlord planning for a quick return on their portfolio is likely to have a very different strategy than someone investing for long term gains and/or retirement. Quick returns can be achieved from purchasing a ‘fixer-upper’ and carrying out the necessary refurbishment costs to either re-sell or re-finance. Whereas the more passive investor may look to purchase a property in a good condition, where little to no refurbishment costs are required, to hold for long term investment.

There are a number of popular techniques used by investors to build portfolios and here at Shaw Gibbs we can help you plan and structure your portfolio in the most efficient way commercially and tax wise in order to set you on the right path. We’ve found that the property investment can take many forms and investors vary from the small portfolios which are held to aide with monthly cashflow to the large-scale property developers.

Relationships are so important in any line of business but none more so than the property industry, from estate agents to mortgage advisors, your accountant is the key to find people you trust and can rely on.

Contact me for an informal discussion on how we can help.