Owning property is something that most people want. It’s the satisfaction of having your own space that’s yours to do with as you please. It’s an investment for you and your family and the security that comes with it. However, building up a property portfolio is certainly something you should be doing if you have the funds to do so. So what are the benefits?
Multiple Properties Increase Profitability On Rent
Over time, the amount of rent you can charge usually goes up and with multiple properties that can end up increasing your profits. Make sure you check in with the estate agents to see when you can up the rent. As your mortgage payment is the major expense, this won’t tend to go up apart from any fluctuating interest rates. So it’s earn an extra profit that can all go towards paying off your mortgage repayments sooner and having the benefit of owning more of the property.
More Income In General
A property portfolio offers multiple streams of income that most individuals wouldn’t usually get off the one property. If you only have the one investment property and it doesn’t have tenants then it’s not making any profit. Whereas having multiple properties means you’ll have multiple incomes coming in at different times. This hopefully helps with the overlap in quiet periods where old tenants move out and you need to find new ones to move in.
An Investment For The Family
Property is an ideal investment, especially when it comes to providing for your family further down the line. This can come in handy when your kids have grown up and wanting to go to university or need a deposit for their own home. You could even gift the property to a family member or leave one to them in your will. Even though all investments are risky and property has many, they are still a great way of investing money that might just be sitting in the bank.
Access To Equity
Equity is great for borrowing money when the value of your property goes up. You can borrow against that increased value which gives you the option to invest into other properties or just fund your lifestyle and paying for things that you might want to treat yourself to. It can also be an opportunity to save up this equity for later on in the future when you may need it most.
This is a collaborative post.
Depending on the savings you have managed to accrue and the pension you have from the government, retirement can be a little daunting when it comes to having enough to live on. Obviously, there’s no longer any income coming in each month so it’s important to stretch and manage your money each month. However, with extra properties, you can continue to run these as rental properties during retirement and when needed, you can sell up and have a big cash injection when you need it the most.
So if you have the funds to buy more property, it’s certainly something to consider as it may a very worthwhile investment.