Please take advice. Owning a Ł1 million property portfolio can be achieved providing you are patient. It is a question of balancing the retention of excesses on rental income against the capital growth generated over time. Consider, say and average of 5% property inflation per year on a Ł1 million portfolio would result in you making Ł50,000 compounded capital growth.

HOW?

Its all about gearing equity and loan, You don’t need a million pounds to own a Ł1 million property portfolio. You could need as little as Ł100,000 as deposits and a bit extra to cover fees. That is because it is possible to borrow the other 90%.

THINK LONG TERM AND BE PATIENT

You don’t even need Ł100,000 !!!

All you actually need is your first 10% deposit. Thereafter, with careful planning you can re-align your portfolio to raise future deposits whenever the property increases in value and rental income meets the criteria for capital release. There are many ways to do this. One example is refinancing. However, you may not even need to do this. Some Buy-to-Let mortgages schemes allow you to increase your mortgage in line with property prices.

Assuming that property will increase in value by 7% every year, it is possible to double your portfolio value every 10 years, or by simply by increasing your mortgages in line with property/rent inflation and using the extra cash as additional deposits you can do it sooner.

If you could raise Ł100,000 cash to invest in property, this would put you into a position where you could spend up to Ł500,000 on properties. With such an investment, if the property market were to increase in value by just 5% per annum, you would be making Ł25,000 a year, increasing year on year. This represents a rising return of at least 25% of your initial Ł100,000 investment

Buy-to-Let made easy - Why it might be better to refinance than to sell

Imagine you had bought your buy-to-let property for Ł100,000 and taken an Ł85,000 buy-to-let mortgage some time ago. Now let's assume that, as time has passed by, both the property and the rent have increased by 100%. So now the property is worth Ł200,000 and you still owe Ł85,000 on your interest only mortgage.

You have three options:-

Keep the property and keep retaining healthy rents.
Sell the property. This will give you Ł115,000 less costs. But what about Capital Gains Tax? Unfortunately, by selling the property you have realised a Ł100,000 Capital Gain. The tax on this could be as much as 40%, i.e. Ł36800 after your exemption, if jointly owned utilising 2 exemptions, say, Ł33400 even if you have owned the property for over 10 years and claimed all of your indexation allowances, you will still have to pay Ł24,000 in Capital Gains Tax. That means that you will have somewhere between Ł91,000 and Ł75,000 in your hand - still a very nice return. However, the property is sold so you will not benefit from any further growth in property values and rents.
Remortgage the property. Bearing in mind the property and the rent have doubled why not double the mortgage? This would release Ł85,000 and the rent would continue to pay for it. You haven't realised a capital gain so there is no tax to pay. Better still, you still own the property.