Portfolio Purchase – What to consider?
Have you done your research?
- The biggest mistake you can make is rushing into a portfolio purchase. It is crucial to analyse the portfolio thoroughly to understand its real value and potential. As well as identify potential risks or hazards associated with the purchase.
Are properties tenanted?
- A portfolio with tenants in situ allows an almost instant monthly income without breaking sweat. You avoid the hassle of marketing several properties at once and avoid having periods of expenses but no rental income.
What’s the area like?
- It is important to recognise the wider landscape surrounding your portfolio purchase. Are there planned developments nearby that will affect the portfolio? More amenities may make the properties more desireable and valuable, however, an increase in surrounding properties could increase competition.
Have you considered tax?
- When budgeting for your portfolio purchase, it is crucial to consider the tax charges you may face. However, there are ways to mitigate this, as a purchase of 6+ will see a multiple dwelling tax relief which coud save you tens, potentially hundreds, of thousands in tax.
With UK rent prices rising at their fastest rate for several years, it could be a great time to purchase a property portfolio.
IT'S GOOD TO TALK
Submit our online Client Enquiry Form or contact the team today on Tel: 0800 774 7045.
