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How to start building a Buy-to-Let Property Portfolio

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Building a buy-to-let property portfolio is a good way of creating long-term, sustainable returns on your investments, but the correct approach is very much required – creating a property portfolio is a highly multi-faceted undertaking, with many stakeholders involved.

At FC Funding, we offer limited company BTL portfolio mortgages as part of our range of services – a highly convenient way of ensuring that every property in your portfolio is protected under the same plan.

Read on to find out more about getting started building a BTL portfolio from our in-house experts, and once it’s established, protecting it appropriately.

Know your goals

Having a vision for your property portfolio is absolutely essential to its future success, as this will be the reference for deciding which properties to purchase, from location, to price, to number of bedrooms.

The two main ways to produce a financial return from your property portfolio are to one, benefit from long-term increases in property value and sell at a later date, or two, make returns from rental payments over time.

Knowing ahead of time how you will approach your income stream will go a long way to ensuring that any expensive mistakes are kept to an absolute minimum.

In addition, pay some thought to the endgame. What is your exit plan? Do you intend to sell your portfolio or to hold on to the assets for future generations? Without some idea of the endgame, you could find yourself off track in the future.

Research, research, research

Knowledge is power – and this very much applies to navigating within the buy-to-let space. By ensuring that you complete thorough research before adding a property or group of properties to your portfolio, you can ensure that each choice is fully optimised and cohesive to the portfolio as a whole.

Have a read below of some of our top-tips to conducting effective property portfolio research:

  • Speak to local estate agents for advice on property value trends or tenant preferences – allowing you to stay ahead of the game
  • Look into which locations may grant you the best return on your investment
  • Join a landlord or property investment group to learn from highly experienced peers, who can share their valuable experiences and insights
  • Check out common property sites such as Zoopla or Rightmove to give yourself a gauge of market activity in the area
  • Assess whether your property will attract the appropriate tenants, and whether they are compatible with local amenities

Caution is key

Proceeding with your buy-to-let portfolio plan requires caution – as mentioned previously, any mistakes will likely be costly and difficult to remedy quickly.

This is why we firmly recommend beginning with one property, as once you begin to see returns on it, you will have tons of valuable experience and insight to proceed with the next property acquisition as effectively as possible.

We also recommend speaking to a mortgage adviser, as they can advise you on the best way to secure coverage for the multiple property portfolio.

Buy-to-let property portfolio mortgages from FC Funding

If you are a property portfolio holder, or are thinking about heading into the property market in order to build a portfolio, FC Funding are your commercial mortgage and funding specialists, and can provide expert advice and professional services to help your portfolio thrive.

Our limited company buy-to-let mortgages provide you with a huge range of benefits – you can find out more by talking to a member of our friendly team today, on 01202 937880.

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