Build a property portfolio you can rely on.
Access finance options tailored to property investors.
Benefit from a steady income and long-term capital growth.
When you’re an investor focused on building a property portfolio that yields rental income or capital appreciation - or both - you need a solid financial plan that matches your strategy for purchasing and holding properties.
Accessing the right kind of finance could help you diversify your investments across different types of properties and be key to you achieving a steady income and long-term capital growth.
Leveraging finance for your property portfolio.
Investors quite regularly choose mortgages or loans to finance the purchase of properties within their portfolios. And this strategy could work for you too. By leveraging money through borrowing, you could limit the initial financial impact of the purchase and secure your future with the potential of equity growth.
Some of the most frequently used finance products include:
● Bridging loans
● Commercial mortgages
● Loans for Land
● Buy to Let mortgages
Types of properties investments within a portfolio
Residential properties
Single-family homes, apartments, or houses that are rented out to tenants.
Commercial properties
Office buildings, retail spaces, or industrial properties.
Mixed-use properties
Properties that combine residential and commercial spaces.
Buy to let properties
These properties are purchased specifically to rent out, either on a long-term basis (e.g., for families or students) or short-term (e.g., holiday lets or serviced apartments).
HMOs (Houses in Multiple Occupation)
Properties rented out by more than two tenants who are unrelated to each other, meaning they are not part of the same family or household.
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Key considerations of property portfolio investments
Whether you're thinking about investing in a property portfolio, or already have, you’ll understand that the main reason for doing so is to provide either a regular income or future financial security. Usually, the regular income comes from rental payments generated by leasing or renting properties, and the future financial security is based on the properties increasing in value over time and thus, releasing capital gains at the time of sale.
Whilst building a property portfolio can be financially beneficial, it’s important to consider all of the pros and cons - especially when you’re considering finance to fund your purchases.
Benefits vs Risks
A well-managed portfolio can provide steady income
Properties have the potential to increase in value over time
Property can act as a hedge against inflation, as rental income and property values often rise with inflation
Deposits, legal fees and taxes add additional costs
Significant upfront investment is often required to purchase a property
The property market fluctuates, sometimes affecting rental prices and property values
Owning multiple properties requires correct management, and often fees are incurred such as maintenance, insurances, tenant management etc.
Property can take a while to sell which isn’t helpful if you need to access cash fast
Interest rates on any finance used could fluctuate, thus changing the profitability of rentals
Let’s build your future together
Because the majority of the people who choose to trust Key with sourcing commercial finance are property investors, we are well versed in both the application process and the market.
Our experience means that when you come to us, we already understand the foundations of your business and your plans and know exactly what questions to ask to learn more about you.
Acting as an extension of your business, we use everything we know about you to secure you the right finance and build your future together.
FAQs
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There are multiple finance products available that can support the purchase of property within your portfolio. However, which one is right for you will depend on the type of property and its intended use.
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The best place to start is researching the market and deciding what kind of portfolio you want to build. From there, liaise with professionals such as our team at Key, who can offer advice on finance to support the build of your portfolio.
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The amount of time it takes will vary depending on your goals, funds and success of the properties. However, the key to success is focusing on improvement on an annual basis. We often come across investors that after five years, have a solid property portfolio, but for some it could take 10 or more years.
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What the lenders will want to see will totally depend on what type of finance you’re applying for. All lenders will assess your credit history, so it’s important to be mindful of that.
Not sure how to take the next step with your investment portfolio?
If you’re not sure on what to do next and which finance option works best for you, why not let us help. Book a free consultation with a member of our specialist team.
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Need more information or have a question? Our team is here to help. Simply fill in your details, and one of our experts will give you a call at a time that suits you.