- 29 November 2021
- Posted by: admin_gray
- Category: Property
Written by Sapphire of the Savvy Women Group
In this week’s SWG blog, I’ve decided to talk about the property market and the process of setting up your finances so you can get the most out of your venture. There are steps you’ll need to take to make sure you’re ready for what the market has in store. I feel these tips will help you on your way to better understanding how to navigate finances within the property sector, and what to do when starting a renovation project.
WHAT IS THE PROPERTY MARKET?
The buying and selling of land and buildings
How does it operate: Though sometimes volatile, property investments are generally less risk averse compared to other investment options like trading/gold and silver. With that being said, the housing market often fluctuates. Housing prices can go up or down depending on the state of the economy amongst other things.
The Guardian reports on a study by housebuilder Persimmon: There has been a “64% rise in profits for the first half of the year fueled” by a “property market boom during the Covid-19 pandemic.”
IF YOU WANT YOUR INVESTMENT TO THRIVE, MAKE SURE YOU:
1. Never let your emotions take over when looking at a property. Always remember this is for investment purposes.
2. The lower the price that you can get for a house, the more money you can make out of it. Gain a profit if there are no unforeseen circumstances internally or externally with the property.
3. Always do your research on the specific area. The specific area can get you a better market for your clientele and it will appeal more to them.
Organising your finances
-Sometimes it is required to put down a 20% down payment on an investment home instead of the usual 3% down payment since mortgage insurance is not required for an investment property.
-Do not forget when putting money into an investment property there are strict rules and regulations that you must follow when completing a renovation so keep in mind the budget that you have and try to stick to it.
Keep track of expenses
-Keep a strict account of all expenditure if you are taking on a renovation project. If you are needing just a little bit more income to help complete the renovation. Look at finding areas where you can cut cost.
-If this is not feasible then think about taking out a small loan to finish the renovations. Just try to keep the expenses low cost so that you can gain a good profit from it all in the end.
-Once you start in the property business you must be free and clear of all debt. You will want to have all of this paid off before you start in your real property career. You do not want this listed in your investments.
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1. Buy properties that are lower cost than you qualify for. Doing this will leave you with more money to spend on things like renovations. Take into consideration any contingencies for any emergency situations.
2. Find a good lending agent that can help you with your financing options. They have some rather good loans out there and the agent can help you find the one that fits the best with your budget.
– Savvy Estates service offers certified mortgage brokers that can obtain mortgages for most people even those with CCJs and arrears, click here to speak with us today.
3. Find yourself a business partner. You want someone that will work with you and your budget and give you sound advice if you are needing it. This will create a really good work environment and help with the areas that you would need to improve if any.
-Always remember to have contract signed by both parties so there are no complications.
All in all, these are all good business tips when looking to find and start renovating a project. Again, it is a good idea to have a partner to help with the business and property aspect of it all, especially someone who fills in any gaps of knowledge or expertise that you need. Alternatively, you can hire a property manager to help too.
Sign-ups for our Savvy Investor Academy are now closed, so instead join our AQA accredited property courses today – upskill yourself and increase your investment knowledge. Download our FREE Complete Beginner’s Guide to Property Investing now!