Jonathan Vowles Chartered Accountants

01234 752 566


Property Millionaire Secrets Part 1 - How to Build Your Portfolio!

Buy-to-rent or rent-to-rent?


If you already have loads of wealth, then starting a property portfolio is easy. If you are starting with less, or even nothing, then it is harder. So what can you do to start?

There are many property millionaire secrets and the first one is about getting started!

There are many property millionaire secrets and the first one is about getting started!

copyright: jirsak / 123rf stock photo

Finance is the first thing to think about. If you are going to buy a property, then you need a deposit. As dull as it sounds, saving regularly to build a deposit is an excellent way to go. But unless you have already saved up, it is a medium-term strategy, and it won't get you started now.

"Saving up is always good, however, can you remortgage?"

If you already have a property and can remortgage to come up with your deposit, then you are poised to get going. The downside of borrowing the deposit is that you are probably close to 100% borrowing which means that you will have lots of cashflow pressure each month. Make sure you have a cash cushion, even if it is only a couple of months' worth of mortgage payments.

Can you club together with family members and pool your resources? Sharing can be both good and bad, so be careful if you do this and make sure you have a written agreement with the people you are sharing your money with.

Buying a property isn't the only way to build a property portfolio though. If you haven't already, check out 'rent-to-rent'. Strange as it sounds, there are lots of opportunities to rent a house from someone and then rent it on to a different person for more. How much more is the important thing!

One of the ways to make it more is to spend a little bit of money on the property to turn it into something more. The something more could be into a house of multiple occupation (HMO) or into a serviced apartment. Which one will work for you is a matter of location, house size, type and a whole lot of other variables.

Remember the difference between buy-to-rent and rent-to-rent is that you can have a more significant rent-to-rent portfolio quicker. In fact, having an extensive portfolio is an integral part of your success.

If you are thinking of going down this route then you must do your research and maybe go on a course to find out more.

"We can put you in touch with course providers if you are interested!"

This article is part of a series, so keep an eye on this blog for more soon. Call me on 01234 752 566 or click here to ping me an email for more information about building a property portfolio, training courses or property taxation.

Until next time ...


More about Jonathan Vowles ...

I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.

My eclectic interests in growing and developing business span a number of areas, which can be summarised as strategic business advice and tax saving advice.

I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.

I relax by reading fiction and by getting away from the office in a campervan.


01234 752 566