Building a Property Portfolio in Melbourne: A Beginner's Guide

Building a property portfolio is the dream for many Australians. Whether it’s a way to supplement your income, enjoy a better work-life balance, or create wealth to pass down to your family, a high-quality property portfolio may be the answer to your personal goals.

But building a property portfolio can look like a giant mountain to climb, especially when you’re at the bottom of it. And though the journey requires uphill climbing, hard work and careful planning, it’s all worth it once you reach the summit.

Here, the property experts at Patrick Leo explain a beginner’s guide to building a property portfolio in Melbourne:

Establish your goals

What do you wish to accomplish through building a property portfolio? Establishing your goals will help you to answer this question, and start out with a clear picture of what you want to achieve.

For some investors, it’s achieving a better work-life balance with more time to enjoy the things in life they love doing, like travel or snowboarding. For others, it’s ensuring a financially secure retirement, and having something to pass down to children and grandchildren.

Develop your investment strategy

This is possibly the most important part of building your portfolio: developing an investment strategy. Here, you’ll sit down with the team at Patrick Leo and have a look at your options for property investment, and consider which types of properties will best suit your position.

While investing in family homes and apartments may be the best investment for one investor, commercial properties may be better for another. The strategy you employ might include buying-and-holding, renting out, short-term rental or flipping.

Start small

Starting ‘small’ looks different to everyone. For one investor, it may mean buying the most affordable unit in the most affordable suburb of a city. For another, it could mean buying an entire apartment complex. Starting small simply means not biting off more than you can chew, and this of course depends on the investor and their current position and goals.

Expand at your own pace

From there, it’s all about expanding steadily by using profits and equity from your current portfolio to add other investments. It’s a long-term game which may involve selling one property to buy another, and checking your budget with the property consultants at Patrick Leo.

Diversify your portfolio

Once you’ve built a stable portfolio, it’s a common strategy for investors to diversify. This could mean buying your first commercial property, investing in a different city or a regional market.

Let’s climb that mountain of property portfolio building together. Patrick Leo is Australia’s leading team of property consultants, helping clients achieve their financial goals through property investment. Our expert team helps you identify, purchase and manage your property to continue your path to financial freedom and abundant wealth. Start the conversation with Patrick Leo today.