Building a property portfolio is a great way of investing your money, and although it may not be the best for those of us that are looking for a quick return, taking your time to invest your money carefully can result in a strong portfolio. There are a few ways that you can use an extension to increase your portfolio, which we will look at in more detail below.
If you’ve invested your assets in a plot of land, New Build Architects can help you to achieve exactly what you have in mind, from planning permission to construction both externally and internally.
What is a property portfolio?
A property portfolio is a term we use to describe a collection of properties that you own, mainly used as a way of investment to help you diversify your assets and generate income. A property portfolio could refer to homes that you are renting out, student lets or holiday homes. Although a property portfolio could be a good idea as a way of investing your money and making a return, it takes a lot of time and care to create a successful portfolio. If you are thinking about working on your property portfolio, you should make sure that you have time to spare when it comes to improving your properties, carrying out repairs and redecoration. You will also have to make sure that you have tenants to keep paying the bills to maintain your cash flow.
How can you increase it?
So, maybe you’ve already invested in one property and you’re looking to continue growing your portfolio. To increase your property portfolio, one of the best places to start is with your first investment. A great first investment stands you in the best position to generate funds to put towards another – start small and build on this, in an area that you know well. The first property that you invest in is likely to be a property that could do with a bit of attention to get you to where you want it to be – and there’s no better way to do this than with an extension. Read on to find out more about how an extension could help to boost your property portfolio.
Types of extension
There are a few different types of extensions that you could choose to help you boost your investment property, some of which include:
- Wrap-around extension: These extensions, as the name suggests, wrap around the home in an L-shape. They are perfect for increasing the space on the ground floor of a home, whether you’re increasing the size of your kitchen, or creating a new space within your home.
- Side return extension: In terraced homes, there are alleyways to the side of each property that often go unused. A side return extension utilises this area to give you more functional space within your home by using a space that is already available.
- Double-storey extension: An extension on both the ground floor and first floor of your home can add a lot of value to your property. They can help you to add new space to your home on both levels, so you can benefit from a new bedroom upstairs with additional space downstairs.
How can an extension boost your portfolio?
You could think about adding one of the above extensions to your home to increase your property portfolio. As we previously mentioned, to be successful when it comes to building a strong portfolio, your first investment must be a strong one, so that you can use the income to help pay for others along the line. Adding an extension to your property means that it is likely to be more sought after and will appeal to a wider range of people. It also means that you can add value to the property so you can be assured that your investment will result in a profit. Here are a few of the benefits that come with adding an extension to your property.
Increases space
When buying a property to increase your portfolio, it is likely to need a facelift. It might be that the property itself is small, and you are hoping to increase it so that you can modernise the interior. There’s no doubt that there is an extension suited to all homes, no matter what you’re trying to achieve – whether you need to extend towards the back of the house to increase the entire first-floor living arrangement, or you need to build a new room upstairs too. No matter what you’re looking to achieve, an extension can help you to improve your investment property so that it is ready for its new tenants.
Curb appeal
An extension instantly improves the curb appeal of a home, which is one of the main factors that potential buyers and tenants will look at when they are searching for a place to live. If you can see that modern updates have been made to the property from the exterior, people will be more eager to get inside and see what it has to offer. Interest in the property means that offers are likely to be closer to your asking price, or many even over, which is beneficial when it comes to growing your portfolio with the help of your first property.
Functionality
This plays a key part in improving a property. Having it look great from the outside is all well and good, but is it functional? Adding an extension means that you can increase functionality within your property, meaning that you can create both a modern and accessible home. You could choose to extend the kitchen and add modern extras to increase the overall value of your home or increase the living space to appeal to a larger family. Functionality is key when it comes to improving your property with an extension and adding value to your investment.