Grow your property portfolio with Cala

Whether your focus is capital appreciation or rental income, building and maintaining your property portfolio takes time, commitment, and planning. There is no magic formula for selecting the right properties for your budget and needs, but careful research – particularly for your first buy to let home – will make a big difference to your chance of success.

 

How to start a property portfolio

If you are new to buy to let investing, we suggest that you seek independent financial advice before you start a property portfolio. Many new property investors don’t consider all of the expenses, such as capital gains tax, tax on rental income, maintenance and extra Stamp Duty (England) or Land and Buildings Transaction Tax (Scotland) into account.

 

Location

The location of your properties is an important starting point. If you intend to manage your properties yourself, it makes sense to build a portfolio that is close to your own home. Those with larger scale portfolios who are willing to engage a management company can decrease the risk of local house price fluctuations by spreading their portfolio over more than one location.

Wherever you choose to buy, research the area thoroughly. Look at the rental demand and current rental yields, and make sure that you are considering the needs of the type of renters that you are targeting. For example, if you are hoping to rent out your property to families, a good school catchment will be a big draw. 

Condition

Some advice about how to start a property portfolio will tell you that properties in a poor decorative state can be savvy investments. This is true, as long as you have the time and experience to commit to renovations and repairs to make the home attractive to renters.

If you do decide to take the route of a fixer-upper, make sure that you have the property thoroughly surveyed. Set aside extra cash to cover the mortgage in case your renovations take longer than expected or you discover unexpected repairs.

A newer home will have been built to more stringent building standards, so buying more modern homes for your portfolio can be a way to manage the risk of high maintenance and repair bills. Investing in new-build homes can be an attractive option. Our homes come with a 10-year NHBC Buildmark policy for extra peace of mind.

Low maintenance and desirable rental homes

When you’re ready to build your property portfolio, Cala can help.

Cala has a range of services, information and purchase schemes that are popular to investors. If you are looking for a property with a guaranteed yield, you should have a look at the show homes that we are currently offering through our show home sale and leaseback scheme.

If you are looking for a property that can be purchased quickly and offer an immediate home for your renter our range of ‘Ready for You’ homes will fit the bill.  

CALA Homes