Why Getting Your Home in Order May Help to Improve Your Financial Life

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When people think about ways to improve their financial lives, they will often think about exclusively pragmatic and obvious steps that can be taken. So, for example, creating a budget, or taking on a second job, or cutting out excess spending and cancelling the regular visits to restaurants.

All of that stuff is great, and can certainly have a tremendous impact. But on a subtler, more psychological level, there’s a good argument to be made that getting your home in order can improve your financial health – whether you live in a high-end Montage Property, or in a humble apartment in the city.

Here are just a few reasons why getting your home in order may help to improve your financial life.

It initiates a “domino effect” that inspire positive change throughout other domains of your life

Often, when we’re in financial trouble of one sort or another, we become disheartened, and fall into a pattern of acting out negative habits that keep us where we are, or maybe even worsen our situations.

Tidying up and organising your home – that is, decluttering, dusting, organising your belongings, and so on – is a practical and achievable step that anyone can take, that will make things “better” in a clear sense, and that can serve as the inspiration for a cascade of positive change.

In his book, “The Power of Habit,” the writer Charles Duhigg refers to what he calls “keystone habits.” These keystone habits are the sorts of habits that automatically trigger a cascade of other positive habits, through their very nature.

Keeping your home in order can serve a purpose similar to this, and can be the first step in getting your financial life back in order, in an indirect sense.

Crystal de Passillé-Chabot

The more organised you are, the easier it is to maintain a proper perspective on things

It’s very difficult to keep on top of your financial affairs, when your entire life is quite chaotic and disorganised, and you’re not really sure how to begin making sense of things.

Organising your home is a first step in organising your life, in general, and there is evidence that the simple act of tidying up can help to order your thoughts and give you a greater degree of mental clarity.

When things are organised and orderly, in general, it is much easier to maintain a proper perspective on your situation, and to make smart financial decisions.

Your confidence is likely to rise in direct proportion to how appealing and tidy your personal environment is

Often, a significant part of what stops people from seizing control of their financial destinies, is a simple lack of confidence and self-esteem.

When you’re down, and have little if any belief in your own ability to make a positive change in your life, it’s unlikely that you’re going to successfully claw yourself out of debt, and forge a more positive path forward.

The thing is, our immediate environments have a significant impact on our mindset. Tidying up your home, and making your personal environment more appealing and organised, can really enhance your sense of self-confidence and your belief in the potential for change.

Who To Hire When Buying Your First Home

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Buying your first home is a big step. In order to find the right property and make the process easier, it’s worth hiring a few professionals to help. Here are some of people you may want to hire.

Agents

Agents help to link up buyers with sellers by organising viewings, marketing the property and helping to handle the paperwork. It’s technically the seller that ‘hires’ an agent – when buying you usually don’t have to pay any extra fees. Whilst there are independent sellers out there, most sellers use an agency and so it’s worth shopping around agents in your area. There are also online agencies that you can use to help find properties.

Mortgage brokers

Mortgage brokers can help you to find the best mortgage deal and are worth using – especially if it’s your first property and you’re new to mortgages. Most mortgage brokers have exclusive deals you won’t find on the market due to having close links with lenders. You may have to pay a fee to use a broker, however this can be worth the money you save. If you’re simply looking for advice, you may be able to hire a free advisor – brokers tend to play a more hands-on role and can negotiate with lenders for you, whilst advisors simply tell you your options.

Rowan Heuvel
Surveyors

Once you’ve found a property you’re interested in, it’s worth hiring a surveyor. These professionals can help to examine the property from a structural point to check that there aren’t any signs of damage that could result in expensive future repairs. A surveyor could save you a lot of money by helping you to avoid a property that could be expensive to maintain in the long run. Always look for a surveyor that is experienced and accredited in order to get a reliable survey.

Conveyancers

Most people would struggle to buy a property without conveyancing lawyers. These legal professionals can help to handle the legal changeover of ownership, ensuring that all paperwork is sorted correctly. This can be a complex job and so it’s always worth shopping around for a reputable conveyancer.

Movers

When moving your possessions into your home, you may want to hire a moving company. A team of professional movers will be able to move your belongings in a timely fashion whilst ensuring that nothing gets damaged. You can handle this process yourself by hiring a van and getting together some friends and family members to help you – this could work out cheaper if you’ve only got a few belongings to move. However, if you’ve got lots of possessions that need moving or are moving a long distance, hiring a moving company could be preferable as these professionals will be able to use a lorry to shift more of your belongings in one go.  

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.

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