How To Make Big Money With Property

Perhaps you have been saving for years, and you’re now ready to put your hard earned money to good use, or maybe you’ve struck lucky and found yourself with some extra cash – either way, property is undoubtedly something to consider investing your money into. While it may not be the most straightforward way to grow your capital, it indeed allows for great profit potential. Here are some tips on how to make big money with property.

Begin with your home

Do you really use all of your home? Maybe you are an older person living in a house that once accommodated your family, but now they have grown up and flown the nest. If you have spare bedrooms, you could very well turn your home into flats. You could split the house up, keeping a flat for yourself, while renting the others out. This is a sure way to release some equity, as well as a great way to begin a property development portfolio, supervising the development in the comfort of your own home.

Seek young professional tenants

A great way to ensure profit is through tactical accommodation. A great example of this could be developing a flat for shared accommodation, targeting young, professional people. The best way to achieve this is through developing to a high quality while keeping the rent lower. This transforms the property from a single occupant paying one rent, to several occupants paying a fair rent each, drastically increasing your capital.

Purchase flats instead of houses

In the majority of cases, flats generate a better return than houses when buying-to-let. Not everybody agrees with this, and some hold their opinion on houses coming out on top. Despite this, there are some pretty good advantages but buying a flat that should not be overlooked. Some of these advantages include the purchase price being lower – meaning that you can buy more to increase your portfolio, the maintenance of the building is shared, and you can get significant discounts through bulk buying. All of these equate to better returns.

Partnering with professionals

It is imperative to partner with professional people who will aid you in your developments, taking on the bits that you aren’t qualified for, such as the logistics of the build, finances, and legislation. They must excel in their field in order to be an asset to you and your portfolio. Trustworthy and reliable partners are essential for a good profit and reducing the stress of development!

Diversify your portfolio

It’s very wise to cover yourself financially, in case the situation arises where you come across unexpected financial difficulty. This could be through a gamble on another property not playing in your favor. Providing that you have another development (or developments) that act as a fail-safe – shared student accommodation for example – you should be able to ride out the temporary strain, knowing that you have security through that property.

Jesse Roberts
Be wise with your tax

Ensuring that you are paying the correct amount of tax is essential when considering capital increase. While paying too much is a grievous error, it is not worse than having a massive surprise bill to contend with. There are plenty of ways to be savvier about your tax, understanding them and putting them into practice is a strong way to save money.

Be patient

Rome wasn’t built in a day, and neither will your portfolio be. Property investment takes time, effort, money and energy, and often the rewards will only seem prevalent after a period of time. Remember to weigh up advantages and disadvantages of investment beforehand, take into account that investing in property is long-term.                                                                          

Add value where possible

Simple steps like modernising and updating property can increase the value of your development, as well as making it more appealing to those looking to rent or buy from you. Other ways of increasing value to property includes having an extension done, to increase the size of the downstairs space, and loft conversions, adding another large bedroom to the property. Another way to increase value is through the addition of a second toilet.

Look for gardens

It is well known that properties with a garden return more than those without. Although having an outdoor space means a little more maintenance, people love fresh air and will pay to have this. Fresh air doesn’t just come in the shape and size of a garden though; it could be as simple as allowing for a small balcony for a first floor flat.

Consider rail links

This is an effortless way to make some money on property. Consider the current rail links in the proposed area, as this increases the value of property due to the trusty commuters. You can also get ahead of the game and beat others to it, by researching plans for future rail links in different areas and choosing to invest in these places instead. This way you could jump in before the property price booms and be smug (and better off) in your decision of looking ahead.

Know your location

When looking for property to invest in, it is sometimes better to keep to what you know – especially when it comes to the area. Although you may be tempted by what appears to be a steal of a property with lots of potential, but is miles away, consider that fact that you know nothing about the town or what it has to offer. There could be a valid reason why it is such a bargain! Instead, stick to where you are familiar. This way, not only are you close by if needed by a tenant, but you will also already have the important information regarding the surroundings of the property, which is required in order to make an informed and smart investment choice.

Whether you’re looking to make some money on your own home, ready to invest in other properties to grow your capital, or seeking to improve your current buy-to-let properties to increase your profit; property often equals big money.

Collaboration

How To Successfully Live On A Budget

It may sound obvious but to successfully live within your means, the cash you spend each month needs to be less than, or at least equal to, the amount you bring in. For some people, this is a lot easier said than done. Credit cards, loans, and even emergency funds allow you to buy things you want when you want them, consequently it is easier than ever before to get into debt.

We all like to enjoy life outside of work and spend money in our free time, whether it’s going out to eat, having drinks with friends or watching the latest blockbuster movie at the cinema. But when money is tight, we have to be careful with the ways we entertain ourselves, to make sure we stick to a budget.

Here, we’ve put together a simple checklist to help you live successfully on a budget.

Create a budget that’s realistic

There is absolutely no point in having a budget you can’t manage – a good working budget needs to be realistic. When putting it together, you need to understand what, and where, you can cut down to save money. You must identify how you can allocate your income so that it meets your expenses.

It might be worth using an online budgeting tool, as these can help you keep everything under control and potentially save you even more money. It’s the perfect way to keep track of everything and see where you’re going wrong.

Steve Johnson

Reduce your car costs

Cars are expensive, there’s no escaping that, but there are numerous things you can do to lower the amount you spend on them. Such as, car sharing travelling to work with a colleague to cut down your petrol costs or adding a second driver to your car insurance policy as a named driver can lower your insurance costs, especially if they’re older and have a long history of no claims.

Until October 14, you can claim an MOT paid for by Halfords Autocentre when you purchase one thing in their store, above the price of a 5p bag. This can be redeemed any time in the year, making it one less thing to worry about and save you money.

Allow yourself to be flexible

Being flexible is one of the best ways to live comfortably and within a budget. We understand it’s not easy, but the simplest actions such as purchasing store brand products, instead of branded, makes a difference.

Prioritise

When you’re living on a budget you need to learn how to prioritise what is important to you. You may have to ditch going out for dinner every week and cook at home instead to save the pennies, as a family this would be a great time to get everyone together.  

In Collaboration with Debbie Fletcher

How To Audit Your Financial Life

Money can seem complicated. But in reality, it’s only ever as complicated as you make it. It may not feel like it, but you will always find that you can improve your situation, no matter what it looks like now. When you firmly believe that you’re stuck and that you’ll never get to where you’ll be, this is just something in your mind. So you need to shake that off, really get to grips with your situation and start to turn things around. The best way to do that is to be really objective with yourself. Even if, right now, your situation isn’t that bad, you can really make a change and improve things going forward. And if you have big dreams, then this is something that you’ll really want to do.

Cathryn Lavery
But what’s the best way to go about it? Because you know roughly where you are now, and you know where you want to be, but how do you make that leap? This is what the audit will help you with. It’s going to help you to break down your current situation and really figure out what changes you need to make in order to get to where you want to be. And there are always changes that can be made. So let’s see what they are.

 

  1. Set Some Goals

 

When it comes to doing anything in life, you need direction. So when you’re looking to make changes to your financial life, you need to have goals. So start out your financial audit by having a vision of what you want to achieve. Whether you want to buy your first home, launch a business, or just build up some firm savings, these goals are essential. Maybe you even want to transform your lifestyle? When this is the case, putting those goals in place is the first step for helping you to do it.

 

  1. Break Down Your Pros

 

The next step is to begin the audit of how you are right now. And to do this, you really have to be objective with yourself. You need to make sure that you can highlight the strengths that you have. Maybe you spend within your means? Maybe you’ve created a savings account? Maybe you earn well? Whatever it is, make sure you’re aware of any positive things about your current situation.

 

  1. Understand Your Cons

 

Next, we have the hardest part to do. Because you have to be able to understand your flaws and your weaknesses if you’re going to turn things around. And to do this, you have to be quite tough on yourself. Be honest and work what’s letting your current financial situation down. Maybe you’re in a lot of debt? Maybe you can’t control your spending? Maybe you earn pittance? No matter what it is, work it out, and own it.

 

  1. Budget Better

 

Now that you are more than aware of how you’re doing, it’s time to budget. By building a better budget, you will be able to take control of your earnings. You’ll find that you can start to really allocate your funds in the most cost-effective way. You’ll often reduce unnecessary payments that you make and start to get smarter with how you view your money.

 

  1. Spend Smarter

 

From here, you then need to be able to make your purchases count. Start by switching your bills to better deals. Use sites such as moneypug to find them. When you can save money on your bills, you’ve made the best start. Then, you’ll want to cut out expenses that you don’t need altogether. This is going to help you to free up cash for your financial goals.

 

  1. Home In On Your Earnings

 

When you’ve got a better grasp over your outgoings and you’re really starting to control them, you then need to do the same with your income. Ideally, you’re going to want to increase your earnings. The best way to do that is to work on getting a raise, go out for more work, or to even diversify your income by adding an automated stream.

 

  1. Keep Everything In Line

 

Finally, you then need to make sure that everything matches up going forward. The decisions you’re making with regard to your money have to link to your goals. Essentially, your actions have to match your ambitions. So be sure that everything you do, every time you spend, and your attitude towards your financial situation all mirrors those original goals that you set out.