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Bangladesh is one of the best kept secrets for real-estate in the emerging world. With a growing population and high GDP growth, it is worth considering investing property in Bangladesh. Not only are properties in Bangladesh very good value for money when converted from the local currency, but there are many options in different budgets, shapes and sizes available.
A property portfolio is simple a collection of property investments owned by an individual or a company. Like many things in life, the idea of a perfect portfolio is highly personal. It depends on your goals, your personal and financial situation, and how much risk you can tolerate. In this BestBari article, we discuss our top five tips to build a property portfolio in Bangladesh.
Find the right balance
There are different ways to build a property portfolio in Bangladesh, but there’s one strategy that is the key and that is: finding the right balance. Regardless of your situation, age or experience, balance is the one thing that can help you maximise returns while minimising your risk.
Balance is achieved through diversification. Diversification helps to protect against risk. By investing in a variety of property types in different locations, you’ll have a resilient property portfolio that will continue to deliver strong returns during turbulent market conditions.
Have an investment strategy
Set an investment objective first and work backwards from your desired goal. It’s useful to set a target so that you have something to aim towards. This will ensure that your investment strategy is structured, gives you something to help you make difficult decisions.
Next define your investment strategy. For example are you looking for rental yield or capital growth? Ideally you should have an investment strategy that delivers both, but this is not always possible. Rental yield is the income (from the rent you receive from your tenants) as a percentage of the property’s value. Capital growth is the difference in the current value and the price you purchased the property for.
Once you’ve decided on your investment strategy, you can start looking at what properties are available on the market and where you want to buy. You can search for properties through our BestBari’s featured properties in our online marketplace.
Sort out your finances
If you are serious about building a property portfolio, then speak with your bank and get your finances sorted as soon as possible. To build a property portfolio you are going to need to borrow. While banks love to see that you have equity in your home or other investment properties they will require you to prove your income to borrow funds. Make sure to also budget for all the costs that come with owning an investment property, interest on your loan, home insurance and property management fees.
Consider leveraging your existing equity
Once you have enough equity in your property, you can use it towards a deposit for your next property purchase, so that you don’t have to put additional cash into buying new properties for your portfolio. In other words, you can accelerate your property portfolio by leveraging the equity you already have. However, be careful not to overextend yourself when it comes to your debt and make sure to at you can make the repayments of your loans.
Do your research to scan the Dhaka property market
If you want to build a successful property portfolio you will need a way of quickly scan the market for good real-estate. Remember that there is always risk with any investment in property. Constantly research and monitor the property market and be aware of price trends. Take note of the average apartment price movement in Bangladesh. It’s important to do as much research as you can to reduce the risk of something unexpected happening.
If need assistance on finding an apartment to purchase in Bangladesh, please contact us. Our team of property specialists in Dhaka will reach out and help you find your dream home, at a cheap price in your budget using BestBari’s network of premium real-estate brokers and property developers. We will then simply connect you with the real-estate broker or property dealer according to your wishes, free of charge.
On behalf of BestBari, we hope you have found this article useful for building your own property portfolio in Bangladesh. Please visit our News and Reviews page for more useful articles like Why Invest Property in Bangladesh. We wish you the best and hope you find your investment property portfolio in Dhaka, Bangladesh.