By Vicki Wusche, author of ‘Property for the Next Generation’
A property portfolio can give you extra monthly income as well as a nest egg for the future. So what are you waiting for? Here are seven tips to help you start creating a family property portfolio.
You don’t have to live where you own
If you cannot afford to buy your dream home in your dream area then how about buying a property in a cheaper area that you can afford and then using the income to help you rent your dream home in the perfect location. Who says you have to live in the property you own?
Don’t sell
Whatever the reason you may want, or need, to move – don’t sell your property. Instead, explore the cost benefit of renting your property and moving to a more suitable property that fits your needs that maybe you don’t actually buy – you just rent.
Property investment is a business
Property is a professional and profitable business if undertaken with care and expert guidance. When you work out the interest you’re earning on your savings compared to the interest that can be earned though property investment, it makes sense to explore what property investment can do for your family and your financial security.
Buy smaller properties outside London
Big properties and those within London are expensive and require a hefty deposit. So buy smaller affordable properties where the rent gives a good return on your investment. It’s about buying where you can afford and where the returns are good.
Your children might not want your house when you pass on.
As parents we’ve grown up believing that passing on our house to our children is a gift and a legacy. But in reality it might be a burden when inheritance tax and costs of selling are taken into account.
For example, when you downsize consider renting the house out as suggested in point 2) above. Use the assets you have now and leverage them for the benefit of the whole family rather than assume one large ex-family home will provide for your children’s future.
Due diligence
Always do your homework; understand the nature of the investment you are making, ask questions and get independent financial advice.
Start now
For example; £150,000 in a pension (after 10 years of contributions) is only going to provide around £7,200 per annum. However by investing £150,000 in property its possible to get between £1,400 and £2,400 net income per month. The income will start now and continue every month until retirement and then for years beyond – providing the properties are well managed.
Property investment can be a great business idea as long as you know the rules and comply with the law. Check out TheSourcersApprentice.com for free resources designed to help and support you. It’s never too soon to start – and its seldom too late either to build a family property portfolio.
VICKI WUSCHE has gone from single mother on limited income, to successful property investor and business owner. Alongside her significant portfolio Vicki runs a successful business sourcing property for other investors and a second that draws on her skills as a former University Lecturer to teach people how to invest in property. She is author of three property investment books and has helped her daughter buy her own property using the techniques she teaches in her book ‘Property for the Next Generation’. For those considering property investment, Vicki offers an introductory strategy session. See: www.PropertyForTheNextGeneration.com and www.VickiWusche.co.uk
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