Month: November 2019

Moving House To-Do List

Moving House is classed as one of the most stressful experiences in life. So why would anyone do it? Many of us buy our first home and eventually outgrow it. For whatever the reason for moving, it can still be incredibly stressful. We have moved home many times, and we have found that being organised can make the process much less stressful. We’ve compiled a summary of big and small tasks to remember when moving home.

Starting packing early

If you haven’t moved home for many years, you will have likely forgotten what a big task this is. Packing your home can take weeks, if not months. So start the process as soon as possible, including a good clear out of any items you no longer need. The bigger the clear out you do before you move, the easier the unpacking will be at the other end. Like us, if you hate packing, book a company as soon as you can to pack and move your belongings for you. It comes at a cost, but we factor this into our budget when moving home as an essential fee.

Redirect your mail

When you move home, don’t forget to redirect your mail. Organise this before you move to ensure your mail will be forwarded to the correct address while you notify everyone that you’ve moved. The Post Office offers a mail redirect service at a small cost for six months (or longer) while you get yourself organised.

For any drivers

Make sure to update your drivers’ license with your new address. It’s an offence not to update your drivers’ license, so make sure to tick it off your list once you’ve moved. Your car insurance will need to be updated to your current address as it may be invalid if the provider has your old home address. Any motor vehicles will need to be registered to your new address too.

Utilities 

On the day you move out, take meter readings for gas and electricity. This will allow you to settle up your account(s) on the property and ensure the buyer of your home will pay the bill thereafter. 

Internet

Many of us can’t live without WiFi, and depending on your phone network signal in the area; WiFi could be vital at your new property. It’s worth contacting your current provider early on to see if they can move your existing account to your new address. This will save time and hassle. If you need to change supplier, it can take a few weeks, so getting this organised early avoids any disappointment.

Multimedia

For many of us moving home will also mean organising your TV licence and Netflix Sky etc. Similar to moving your broadband, call your current media provider to see if they can directly switch it to your new property. Although sometimes forgotten about, make sure to change your TV licence to your new property too.

Council Tax

Notifying your local Council that you’re moving is highly important. Some Council’s allow you to do this online, which can be more time-efficient than handling this over the phone. If can also let them know where you’re moving to and if it’s within the same Council you can inform them of your new address. 

Insurance Policies

You’ll undoubtedly need to spend a bit of time sorting out various forms of insurance. The insurance you have on your current home may be suitable for your new property, but remember we need to ensure both building and contents. These are sometimes with the same provider or in the same policy, but if you live in a building that’s shared, you may need to discuss communal buildings insurance with the provider or buildings factor (if applicable).

Your health is your wealth

If you’re moving more than a few streets away from where you currently live, you may need to inform your local GP surgery and Dental Practice in case you fall out with their catchment area. Once you’ve moved, you’ll need to register with new practices. 

Vote

Last but by no means least, ensure you register to vote at your new address. This is something that’s often missed during the home moving process but can be incredibly frustrating if an election comes round and you aren’t registered to vote. Don’t miss out and get registered.

We hope you’ve found this article helpful in listing many of the important things to consider when moving house. We are currently in the process of moving ourselves, so it seemed sensible to detail the process for individuals who haven’t moved in some time.

If you’d like to get into property investing but don’t have the time or knowledge, book a call with me using the button below to discuss how I could help you on your journey.

Buy to Flip: Top Considerations

We’re all guilty of doing it. Browsing through Rightmove or Zoopla and finding a home in a good area for what seems like a bargain price…where’s the catch? The old ‘property could do with a degree of modernisation’ from the estate agent’s description gives us a clue. Then you take a look at the pictures and realise the property needs a lot of work. But if you still find yourself interested, then let’s think about whether this could be a suitable property for you to buy and renovate (and possibly sell for profit).

Here are some of our top considerations before considering renovating a property.

Number crunching: 

We are all familiar with what we can borrow from the bank to purchase a home, but when considering a property that needs a degree of renovation, this cost will need to come from your savings (after your house deposit is paid). However, you may save a little on stamp duty due to the reduced purchase price. 

And while we can estimate costs such as kitchens, bathrooms, flooring etc we need to remember that unexpected expenses arise too. Expensive repairs can include damp work, roof repairs and windows need replacing. You might also need to rewire the electrics or replace the heating system, but this shouldn’t be an unexpected cost. Some renovation experts in the industry advise calculating all your expected costs and adding as much as 20% extra for unforeseen expenses.

Costs that can be anticipated are for fees involved with individual professionals needed during the renovation works, such as additional surveys or advice from an architect. 

It’s important to mention that borrowing money from a lender isn’t guaranteed for all properties. Occasionally properties are classed as unsuitable for lending, which would mean any purchaser would need to pay for the property outright in cash, and may struggle to get borrowing in the future. Often if a property is not suitable for lending, it will specify this in the estate agents description, or may state only suitable for cash buyers. 

Time to view the property:

You may want to view the property yourself initially before thinking about taking an expert round with you. If you are considering a big renovation project, it would be wise to take along a local builder and/or building surveyor to a viewing to help you get a sense of the renovation costs, and whether there are any costs you may not have identified. Surveyors will likely charge you for this ‘walk round’, but the advice can be invaluable if they identify something you’ve missed. 

Another key professional to discuss your next project with is your estate agent. You can discuss exactly what you plan to do to the property, for example, renovate and extend to get a feel for the end market value. From this end market value, you can work backwards to ensure your renovation costs and purchase price seem sensible, ensuring you are making a profit on top of all expenses. A wise estate agent once said to us ‘you don’t want to be the most expensive house on the street’ and we have stuck by this rule. If your renovation work will add massive value to your property but also make it hugely expensive in comparison to other homes on the street, you may want to reconsider your project.

Getting your purchase price spot on: 

Once you’ve factored in all costs and decided you’re in the financial position to go ahead with your project, surely it’s time to take the plunge? Think about the following points before proceeding: 

1. Are you going into this project with your eyes wide open? Projects don’t often run on time, so are you willing to potentially live in a building site for months or years. Have you thought about weeks or months with no bathroom or kitchen?
2. The costs for your project will undoubtedly run over, have you factored in extra funds to cover this? And will you still be financially safe if your calculations are a little bit off?
3. Is it your dream home, or are you financially driven? Sometimes we can get caught up with the figures and see only the profits. If the house could be your dream home, you might be happier with the decision than if it’s purely financial.

Don’t forget planning and regulations: 

If you’re planning on extending and significantly remodelling, it’s vital to get an Architect on board early to guide you through planning and any regulations. Your local Council website can give initial guidance on whether you will need planning permission for your building works, but moving forward, you will need an Architect to draw up plans and submit these for planning. Something incredibly important when it comes to planning is whether your new home is a Listed Building and whether it’s in a conservation area. Both of these designations can dictate what, if any, alterations or buildings work you can do to your new home. 

We hope you’ve found this article helpful when considering taking on a renovation project. We’ve completed a few renovation projects ourselves over the years, and each one has been a totally different learning experience. 

If you’d like to get into property investing but don’t have the time or knowledge, book a call with me using the button below to discuss how I could help you on your journey.

Fundamentals for Successful Property Investing

Many individuals starting on their property journey quite rightly begin by doing some research online. Some even buy property publications or books, and some attend local property events. On the other end of the scale, some individuals dive into the deep end and snap up their first investment property without too much research. Our journey has been shaped by a bit of both! We started our property journey by purchasing our first buy-to-let and luckily didn’t go too wrong. From there, we have learnt from on the ground experience, but also meeting with individuals in the industry who have beaten the path before us. We’re going to share some of the fundamentals that all successful property investors have in common.

1.Make a plan and stick to it!

One of the foundations of success in property investment is to have a plan. Firstly think about the end goal, and where you would like your property journey to take you in terms of cash flow or growth of equity. From the end goal, work backwards to create achievable shorter-term goals. Creating a business plan of sorts will help keep you on track to your goals and reduce the risk of you losing traction. Ultimately a plan can help you reflect on your journey and appreciate success along the way.

2.Build a good reputation

Being a new property investor in a local area will help you build a network of other local professionals within the region. Building a network of trustworthy people is worth its weight in gold, and growing this network will pivot around whether you are an honest and ethical investor. If you make a wrong move or let someone down in the industry, your reputation will be tainted quickly. Just remember the phrase about Karma being a … . 

3. Knowledge is power

When you’re first starting out as a property investor, make sure you spend time developing your level of knowledge of the industry. This can include knowledge of your local area and the market, mortgage rates, tax regulations, government regulations and building rules. This will help you make wise decisions when it comes to investing and will save you money, so prioritise building your knowledge. 

4. Get your ducks in a row

We advise you to find a good accountant and pay for their services from the outset. As a new property investor money in vs money out can make or break your new venture, therefore make sure you pay to get the best advice. An accountant will be invaluable for you moving forward as they have extensive knowledge of tax laws and acceptable expenses, and they’ll pay for themselves many times over in the tax you’ll save you. 

5. Teamwork makes the dream work

A successful property investor never claims to be an expert in all aspects of property. All property investors need to lean on experts in the industry, for example, conveyancing solicitors, tradespeople, estate agents, letting agents to name a few. A carefully selected group of professionals who can advise on any given project will make or break your success. So remember the phrase: teamwork makes the dream work. Start building your team of experts in the industry early on. 

6. Risk vs Reward

While many investors look at property as a way to make big bucks, we need to always remember property can also come with risks. Think big wins, and big loses. Property is known as a method to grow wealth over time, so keep this in mind when starting out. Invest wisely: buy right and ensure you have a team of experts around you to support you on your journey. Complacency can be a killer, so be fully equipped with knowledge of all the risks involved.

By following the fundamentals we have discussed above, you’ll give yourself the best chance of long term success in property investment. If you’d like to get into property investing but don’t have the time or knowledge, book a call with me using the button below to discuss how I could help you on your journey.

Building Passive Income

Many of us have heard about passive income but are guilty of not knowing exactly what it means, or how we can build passive income. This article aims to cover different types of income and dive a little deeper into passive income through property.

First of all, we need to address what passive income actually means. Passive income is income earned through an asset that requires minimal input. Think of the concept of earning money while you sleep. The asset will produce an income for you whether you spend time on it or not. Passive income can come from one asset or many assets, with wealthy individuals normally having multiple streams of passive income.

There are many different ways to create passive income. I have compiled a short list of examples of passive income-producing assets:

• Network marketing – products sold through word of mouth
• Stock investment or trading – short term or long term income-producing asset through the stock market
• Software – creating software, for example, an app that produces you income when it is bought or used on-going
• Education – creating income through publishing a book, producing online courses etc
• Affiliate marketing – creating income through promoting other peoples products that are sold by you
• Franchising – payment of royalties or passive income by allowing an individual or party to operate their own business using your branding, systems and proven business model
• Drop-shipping – generating income through advertising and selling a product that you don’t stock. You act as a middle person between the manufacturer and the purchaser and do not hold any stock or complete the shipping. 

Last, but by no means least, is property. Property is one of the oldest methods to generate passive income. Income can be gained passively through property when the rental income from the property covers all the bills and costs associated with renting the property and leaves you with money left over.

An example of monthly income from a typical property deal would include:

(Property purchase price £130,000 – a mortgage of 25% loan to value and interest rate of 4%)

Rent £800

Less expenses: Mortgage payment £325, Letting agent fee £80, Insurance £30

NET RETURN: per calendar month £365 

We can see from this example property deal how passive income can be built through property. Per year, the example above would equate to £4,380 in passive income. We always encourage our clients to think about what passive income could do for them, to build towards a target passive income figure. Whether it’s for holidays, expensive hobbies, or to tuck away for a rainy day fund, property is an excellent investment vehicle.

Whether you have thought about getting into property but haven’t taken action, or have a couple of properties already but would like to continue to grow your portfolio, we would love to hear from you. We can take all the hassle away from property investing, managing the entire process on your behalf.

Click the button below to book a call with me, to see how we can help you build passive income through property.