For landlords, we always advise that a diverse investment portfolio that takes into account your lifestyle requirements, age and risk profile, as well as contrasting which investments are likely to yield the highest returns are central to an effective investment strategy.
Property is a great option for investment, especially when you consider that interest rates are currently far below 1%. The time is now to consider adding property, or further property, to your portfolio.
Diversifying is so important because when it comes to property investment, it makes sense to avoid putting all your eggs in one basket should something unpredictable occur in regards to a particular investment.
There are many factors that will determine what sort of investment is right for you, such as whether you require income or capital growth, long or short term investment or how hands on you want to be. Also, do you want your money back quickly?
Diversifying by location is another way to diversify your property portfolio, although some argue that specialising in certain areas provides greater expertise and better results. Always conduct extensive research and target areas where property prices will grow due to their good location or through new businesses opening in the area.
Of course, risk and affordability is key. If you feel that your investment will become less profitable, always get out when you can.
Another consideration is how hands on you want to be when it comes to property management. At Redstones, your time is precious to us and we take all the hassle out of property management for landlords, whilst helping to advise on your next property investment.
In conclusion, diversifying your property portfolio is certainly an attractive course of action and Redstones are here to help you make your property investment ambitions a reality.