What are your investment goals for 2016? Are you looking to buy yourself a new property? It is definitely a possible goal, but you do need to ensure that you have the funds behind you tog et you there.

I’m a realist when it comes to property. Yes I own property and am actively looking to expand my portfolio, but I don’t just click my fingers and the money arrives in my bank account I have to put in a place a plan of how to get there.

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At very grass roots I keep a piggy bank on my desk, all loose change goes in there. When the piggy bank is full I empty the contents into my savings account – simple.

I also use a cash ISA which means I can also clock up my interest. For First Time Buyers you should definitely set up a Help to Buy ISA – as the income you receive from the Government should be more than the interest from the bank when you first start saving.

Each month I also put money from my monthly salary into a savings account. I budget for how much I need each month, plus slight wiggle room so that I still have breathing space in case any expenditure catches me by surprise. A budget forecast helps here so that you can plan to save.

Fitness is a huge part of my life and wellbeing and something I couldn’t live without, but I switched my gym membership to a cheaper one and the difference each month goes straight into savings.

I also make sure that I cancel all direct debits I don’t need and reduce any bills / get on cheaper tariffs when they come up.

OK so at this point you are probably thinking, this just isn’t going to get me enough money to buy a property or I have nothing to cut back on how can I put anything away for savings. First of all I suggest being mindful of the fact you are saving and anything you can put away will help, could that takeaway coffee  or lunch be made at home? Small changes can make a big difference. Just work within your means and keep focused on your goal.

Here’s an example of what savings can do – if you can save £500 a month that’s £6,000 in total for the year, which could be a 5% deposit on a £110,000 property. Furthermore if you are a first time buyer that is 5% of £110,000 share of a shared ownership property. (Do remember you will need to pay fees on top of any purchase so do your research into how much this will be) – imagine what you would be able to afford if two of you brought a property together…?

So kick-starting your savings can have a huge impact on what you are able to afford at the end of the year and for first time buyers the Government has increased the possibilities of what you are able to buy. If you aren’t a first time buyer these savings will still go a long way towards your next deposit or even cover your stamp duty / legal or professional costs.

I am aware though that if you aren’t a first time buyer you will need a larger pot of money – 15% deposit or more (remember the bigger the deposit, the lower cost of finance).

My first suggestion is to look at a joint venture. Do you know someone you trust? Who has similar property investment ideas but is in the same position as you? Talk to them and see if you can work together – if you feel strongly that you can then formalise the arrangement, agree who owns what and ensure you have something in writing from your solicitors. This can be very successful and in some cases the birth of a new company and a great business going forward.

You could also consider finding an investor, someone who will lend you money for a fee – either fixed or at a set interest rate with an agreed repayment date. With this idea you must have an exit strategy – how are you going to get the money (plus the cost of borrowing) back to repay the loan by the agreed date. You must have a fool proof business plan so that you can pitch to investors and then you must get the terms of investment formally agreed. This scheme is very beneficial if you would like to own the property yourself.

If you already own a rental property you could look to see if you can save any money through the rental income. After mortgage, service charge and ground rent as a general rule I keep a reserve fund of 10% of the rent for any maintenance issues. The rest of the rental income can then go back into savings for the next property. Whilst I’m not in a position to give up my job any excess can be ploughed straight back into my business.

My last property purchase was brought through the re-mortgage of another of my properties. The value of the property had gone up significantly over my fixed term period and therefore which I changed my mortgage to ensure I was on a more favourable rate I withdrew the increase in capital which was enough for a deposit on another property. If you are in a position whereby you are needing to switch mortgages then you can look into this as an option.  At the time of changing mortgages I had a good discussion with my mortgage broker about what the best mortgage was and the monthly repayments vs. the rental income and made a decision that was affordable for me. In this case my monthly mortgage costs were going up from £452 to £650, however the rent was so far in excess of this that it still allowed me peace of mind that I was able to build up a reserve account. I never will put myself in an uncomfortable position, there always needs to be a buffer in place (I suggest you have 2 months mortgage costs in your account just in case you loose your tenant for any reason and ensure that you have excess rent which can be used to top up these savings).

As you can see there is always room to save, and there are ideas available so that you can raise capital. Always do everything within your means – don’t put yourself in an uncomfortable situation, sleepless nights aren’t worth it investing in property should be fun and not compromise your lifestyle. However also keep your dreams in the forefront of your mind – they are achievable all you need to do is plan to get there and you will.

I really hope that as we start 2016, if you want to invest in property you go for that goal it’s not unrealistic!

Always keep up to date with us at NC Real Estate or via Facebook as we will continue to be the support behind your property journey – good luck!

NC