Belize Real Estate  Links  
Real Estate Information

How To Build A Million Pound Property Portfolio


Looking to quickly build a million pound property portfolio? You could try a high risk and speculative technique that has been used over recent years by investors hoping to make big profits from property.

The technique relies on re-mortgaging and negotiating good discounts on off-plan property to take a £50,000 deposit and turn it into a million pound property portfolio within a couple of years or less.

How does it work?

The technique only works in areas where house prices are rising fast and opportunities exist to purchase off-plan properties, where discounts of up to 15% are not uncommon.

Investors begin by purchasing one or two off-plan properties. These are properties that are not yet fully developed or have only just received planning permission. Developers tend to offer larger discounts to people who are prepared to buy properties at this stage of the build.

On completion, the investor will refinance the properties. A combination of rising house prices and the discounts gained at purchase, ensure that the property is refinanced at a higher figure than the original purchase price. The extra money gained through refinancing is then be used as a deposit for another two properties.

This cycle will be repeated a number of times by the investor until they have built up a strong portfolio of investment properties, with a combined value of more than a million pounds.

High-risk strategy

Sounds easy, so why doesn't everyone do it? Although many investors have made a lot of money using this technique over recent years, it does contain a very high element of risk and relies on a number of market conditions being right.

Potential obstacles include:

-- Falling house prices

-- Inability to obtain genuine off-plan discounts

-- Poor quality or undesirable developments

-- Difficulty in finding tenants to maintain rental income that in turn pays the mortgage costs

-- Potential capital gains tax problems if the properties are sold

Further advice

Before deciding to use this property investment technique, it is essential to get further advice on the legal, tax and financial issues.

A number of property investment companies exist to help advise their members on these very speculative investments, but be wary of the less scrupulous companies that charge their members £1,000s to attend seminars or build portfolios on their behalf.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development.

For more information and advice, search our property investment pages


MORE RESOURCES:

San Francisco Chronicle (blog)

Real estate firm's game ad nothing to laugh at
Chicago Tribune
Five years into the housing crisis, a national real estate firm thinks there's still a national audience of potential homebuyers just waiting for the right opportunity. The combination of home affordability and mortgage interest rates are practically ...
Real Estate's Hail Mary Sales PitchSmartmoney.com (blog)
Will 1st real estate Super Bowl ad in 20 years help boost home sales?San Francisco Chronicle (blog)
Century 21 Maintains Leadership Position in Brand Awareness SurveyRisMedia.com (press release)
ChicagoNow (blog)
all 11 news articles »


$16 house man: real estate genius or squatter?
New Zealand Herald
And while real estate experts and authorities say he's misusing the law, Robinson appears to have inspired dozens of imitators who moved into the Dallas-Fort Worth area homes - some of which were still occupied by their owners.

and more »


New York Times

Real estate is a team sport
Boston.com (blog)
Sam Schneiderman, Broker-owner of Greater Boston Home Team, discusses the importance of having a team that works together when buying or selling real estate. Whether you are buying or selling, I believe that a successful real estate transaction ...
So Eager to Get Foot in Real Estate's Door, They Work Without PayNew York Times

all 2 news articles »


Aspen real estate outgained other state resort-area markets in 2011
Aspen Times
ASPEN — A flat year for the Pitkin County real estate market in 2011 is looking good compared with the performance in Eagle County and other resort areas in Colorado. A report by Land Title Guarantee Co. shows Aspen and Pitkin County had one of the ...

and more »


Bloomberg

Real Estate: National foreclosure settlement delayed, Nevada AG concerned
Reno Gazette Journal
Ap File BY THE NUMBERS Foreclosure-related filings for 2011 for Washoe County, Nevada and the United States. Filings include notices of default, notices of sale or auction and bank-owned foreclosures. Washoe: 7981 (down 27.3 percent and 27.6 percent ...
Week ahead in real estate (Feb. 6-10)U-T San Diego
Banks Paying Homeowners a Bonus to Avoid Foreclosures: MortgagesBusinessWeek

all 493 news articles »


Montgomery County eyes hefty real estate tax jump
Roanoke Times
Demands and cuts in state funding suggest a 21-cent real estate tax rate hike. Supervisors balked. By Mike Gangloff Montgomery County supervisors braced themselves Monday for the possibility of a record increase in the county's real estate tax rate.

and more »


Zephyr Real Estate Announces Top Producers for 2011
MarketWatch (press release)
SAN FRANCISCO, CA, Feb 06, 2012 (MARKETWIRE via COMTEX) -- Zephyr Real Estate, San Francisco's largest independent real estate firm, is proud to announce the company's top producing real estate agents for 2011. The Company Top 10, in order by highest ...

and more »


Real estate title agent to add 200
Pittsburgh Tribune-Review
The parent of United Lender Services, a national real estate title and settlement agent in Findlay, has acquired two large office buildings along the Parkway West, where ULS will relocate and triple its employment to more than 250.

and more »


TEXT-S&P says European real estate should weather downside credit risks
Reuters
"We think that our macroeconomic forecast of a mild recession for the first half of the year will have a moderate effect on the operating performance of our rated Real Estate Investment Trust (REIT) portfolio," said Standard & Poor's credit analyst ...

and more »


Oregon Company Attempts to Bring Real Estate Into a Mobile World
LoanSafe
by Evan Bedard on February 6, 2012 in Real Estate (Source: By Sherri Buri McDonald, The Register-Guard, Eugene, Ore.) - A Eugene start-up company, RealLead is trying to bring the speed and immediacy of mobile communications to real estate shopping.
Bringing real estate into a mobile worldThe Register-Guard

all 2 news articles »

Google News

home | site map | Colorado Log Homes | Homes for Sale in Denver Metro
© 2006