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Looking for Portfolios for Sale? 4 Things You Need to Consider
Interested in portfolios for sale? Read this short blog post for advice.
Building a property portfolio can take time, money, and know-how. The best property investors and buy-to-let landlords have built their mini-empires with patience and hard work. But there is a faster way: you could simply purchase a ready-made property portfolio.
However, finding portfolios for sale requires careful planning, and in this post, we share 4 important questions you need to ask before you start moving money around.
Portfolios for Sale: 4 Questions to Ask
1. Have you done your due diligence?
No matter the size of the property portfolio in question, the biggest mistake you can make is rushing in. Prior to investing, you must evaluate the portfolio to understand its true commercial value and potential, and also uncover any risks involved in the purchase.
When you work with Cairn, we carry out a review of the cost/benefit opportunities against the investment profile to make sure you’re making the right financial decision.
2. Are the properties tenanted?
Buying a portfolio with tenants in situ means you can start making rental income without skipping a beat. It also saves you from the hassle (and expense) of having to market several properties at once, vetting and placing new tenants.
Here at Cairn, we specialise in the sale of tenanted properties, so we know how to handle the ins and outs of this process, keeping everyone happy and informed.
3. What developments are planned nearby?
Another key consideration when purchasing a property portfolio is to understand the wider landscape in and around your investment. Will new developments (housing, bars, restaurants, schools, transport links, etc.) affect the value of your property in the short and long term?
On the one hand, more amenities could make your new portfolio more desirable to potential tenants. However, new housing popping up right next door introduces more competition and could make it difficult to place and retain tenants in the future.
In short, make sure you have all the facts before pushing ahead.
4. Do you require HMO licenses?
Finally, will your new portfolio allow you to rent one property to more than 3 unrelated people? If so, you’ll need an HMO (House of Multiple Occupation) licence. HMOs are an increasingly attractive property investment idea, boosting yields and spreading risk across multiple tenants.
We offer a number of HMO development services, helping you assess your properties for compliance with HMO regulations.
Find Portfolios for Sale with Cairn
Our property investment services are second-to-none. We can help you assess your objectives for any property investment or development, taking budget, yield, and capital growth expectation into consideration. And once you’ve secured your new portfolio, we’re on hand with a range of property management services to ensure your properties are compliant and maintained to the highest standards.
Get in touch to learn more.