5 Money Saving Hacks for Property Investors
When most people think of tips for saving money, they think of ways to cut their costs on things such as groceries, utility bills, or their car. But, you can save money in a variety of ways when buying investment property. Perhaps you’ve already invested in a property and want to expand, or maybe you’re taking the plunge for the first time since you’ve heard that property investment is one of the best ways to make a passive income. Scroll down for our top tips on saving money when buying investment properties.
1. Be An Owner-Occupant
If you are purchasing your first property and want to immediately generate a return on your investment, the owner-occupant route is a good one to consider. If you don’t mind sharing with housemates, you can rent out your property on a per-room basis, with shared common areas such as your living room, kitchen, bathroom and garden all whilst living there yourself. Investing in private bathrooms in each bedroom can really pay off as this is a luxury that many people will pay more for when home sharing. Homes close to cities, major transport links, schools, universities and hospitals are popular with both student tenants and young working professionals.
2. Electric Conveyancing:
Both residential and commercial property conveyancing refers to the process in which a property is legally transferred from the previous owner to the new buyer. Using the national eConveyancing system when purchasing your home will usually be cheaper; it’s also more convenient, allowing for quick electronic settlement of property transactions and online payment of the associated tax and duty fees.
3. Ask for Seller Financing:
A common method of trying to save some money when investing in real estate is asking the seller for financial help with the closing costs. Although successfully getting a seller to finance all or part of the final costs is quite rare, you may be able to improve your chances by offering a higher amount in return. Some sellers are willing to share the closing costs to get their asking price, so don’t be afraid to ask.
4. Self-Manage Your Properties:
If you are investing in properties and plan to make an income by renting them out, managing them yourself means that you will save on a property management company fee. However, if you have many investment properties, this could be difficult for just one person to take on. For example, you will need to advertise your properties to let, vet potential tenants, carry out reference checks, and provide property maintenance.
5. Build New Properties:
Instead of investing in existing property, you can save money by investing in new build homes instead. Although you will need to get access to land and planning permission from the local authorities beforehand, building new property usually costs less than buying existing homes. Further perks of investing in property development include the option to make the properties more attractive to potential buyers, for example by making them more energy efficient and environmentally friendly than average homes.