We often hear about how someone starts an internet business or develops an app alongside their day job. Suddenly it takes off, and they’re putting their feet up and boasting about a million dollar lifestyle.
However, for most people, starting up a business alongside their day job is a lot of hard work and takes a lot of time – and they don’t always reap the rewards.
This is why we believe bricks and mortar is still the way to go, for people who are keen to earn some extra income, either now or in the future.
Investing in property is relatively low risk compared to other investment schemes. Moreover, while it does require you to do your homework and put in some time and effort initially, once you’ve purchased your property and found a good agent to manage it, you can usually sit back and get on with your life without too much input into the business.
There are a few things you need to do and think about to ensure investing in property is the way forward for you:
Establish your financial goals
Property investment is not a get-rich-quick scheme and generally you should think of it as a long term investment. Some people choose to earn an income from their property now, while others are looking at the long-term gains and prefer to take full advantage of the tax-deductible benefits and have their property negatively geared.
Know your budget
Speak to a financial specialist who can tell you what you can realistically afford and what you need to budget for. Make sure you ask about the risks involved if you are remortgaging your home and the best way you can benefit from tax deductions.
Look at different areas and properties
Speak to real estate agents and look at different areas and properties. We’ve often had investors come to us looking for a particular type of property in a set area, but have decided to buy something else when they realised the property was a better bargain and could help them reach their financial goals.
Don’t be disappointed and procrastinate
Just because you didn’t get the first property you put an offer on, don’t get despondent! If you lose out on one property, it’s because there is one more suited to your needs round the corner waiting for you to put an offer on. You just have to keep looking.
Like any business, there are the set up costs (stamp duty, legal fees and searches), but there will also be ongoing costs you’ll need to budget for. These include management fees, maintenance, council rates, water rates and depending on the property, there may be strata fees to factor in.
With over 40 years of business in the area, we have helped thousands of people reach their financial dreams through property investment. We are one of Newcastle’s longest established real estate offices and our talented team would love share its knowledge with you.
Give us a call on 02 49548833, send us an email to firstname.lastname@example.org or pop into our Cardiff office for a chat.
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