Why Buy a Property Portfolio?

There are certain advantages that investing in portfolio (group of 4 properties) than a one property:

1.    Cashflow Cashflow on a group of properties is usually much greater and healthier than that of 1 x single family house. To the extent if one property is vacant the other 3 can easily absorb the running costs until the vacant it rented, without you sending funds from overseas.

2. Lower purchase price – by buying a group of properties you will obtain a each property at a discounted price, rather than the individual price.

3.    Less vacancy The more units you have under the portfolio, the less risk you have. If you have a 1 single family house and you lose your tenant, you’ve lost 100% of your income that month. If you had a 4 property portfolio apartment and lost a tenant, you still 3 rent payments coming in to pay your expenses.

4.    Economies of scale – If you have 4 single family houses opposed to one single family house, you can organize annual maintenance to furnaces (boilers),seasonal maintenance charges, gutter cleaning and better charges from contractors. Economies of scale are in your favor.

5.    Capital Growth – With a portfolio you will benefit from capital growth from each property. For example if the property price goes up by 5% that will be increase of 5% x 4 properties, which would have been purchased at a discounted price.

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