Buy to let portfolios vary in size depending on the investor and how many properties he or she has. Having multiple properties in your portfolio can and usually will provide a greater income depending on the properties status (i.e. occupied/unoccupied).
But as we say, why stop climbing when your on the property ladder? and continue climbing by growing your portfolio of properties whether or not they are tenanted. Building an invesment portfolio of £1, £2 or £3 million pounds is not as complicated nor difficult as you might think, and the good news is, you don't need to have that amount of money to get started.
If you have no buy to let portfolio, then why not get started, upon an acquisition of 2 or more properties you can begin your portfolio, and grow it over time.
With multiple mainstream buy to let lenders offering up to 85-90% loan to value on buy to let mortgages you could get started with as little as £150,000, in reality you may not even need that.
If you are just starting your buy to let investment portfolio, you only need your initial deposit of 5% / 10% / 15% (depending on your circumstances) for your first buy to let property. The trick to this is to retrieve your funds at the first opportunity and then use any of the properties gained capital for continued investment, again there are multiple ways of doing this, one of the most popular is to refinance. Again you may not even need to go that far, with lenders offering better deals on buy to let mortgages, there may be a product out there that can provide the finance you need on top of your deposit to help you attain your first buy to let property.
Once on the property ladder, you can climb it step by step building your investment portfolio of buy to let properties.
For those struggling with a deposit or those looking for additional financing, you can call us today on 0845 2 605 506, we may be able to find you a buy to let mortgage with increased borrowing in line with market value.
To take a look at just how beneficial a buy to let mortgage can be lets assume that property prices increase by 5% per annum. At this rate you could double the size of your buy to let investment portfolio every 4 years. Providing you increase your mortgage to reflect the property's market value and use the additional funds for further deposits.
Many lenders are keen to lend on buy to let properties and have very competitive interest rates. Some of these lenders also have specialist products for those wishing to build larger property portfolios in excess of £5 million.
As always, when choosing your buy to let mortgage you should make sure that you are aware of ALL the costs involved including:
- Set-up costs (including any high loan to value premium)
- Ongoing interest charges and any changes
So what about your first buy to let property for your buy to let portfolio?
With stock markets at a sluggish level and problems with investments such as pensions, people are beginning to consider other methods of investment, that a majority of people are considering buy to let properties, some even portfolios (multiple properties).
This can be a good choice as long as you are careful about the property you purchase and understand that this is a business venture.
Many lenders are keen to lend on buy to let properties and have very keen interest rates. But these tend not to be your traditional high street lenders.
It is always worth making sure that you are getting the best interest rates as even a 0.50% improvement in interest payments can result in large savings each year. In fact many people can find that they can save well over this amount.
Your first buy to let property can be an investment step for some, some like to go further and continue building their portfolio.
If you are looking to grow your buy to let portfolio, then we are here to help you!
As with any investment choice it is always advisable to seek the advice of an independant financial adviser before making large investment choices.
