22 September 2013

When not to DIY

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diyWhile cleaning our own cars or mowing our own lawns can save us a bit of money, when it comes to property investment, sometimes it’s just worth investing in a professional to do the job for you.

 

Everyone thinks about saving money, but when we reach a crossroads with the option of doing it ourselves or getting professional help, we find ourselves weighing up the options.

You can get help for just about everything when it comes to property investment. From a buyer’s agent to buy the property for you, a property manager to run it and a selling agent to sell it, all the way to a painter and a plumber who are on hand to fix things up.

While this may seem easier, the cheaper alternative is to manage these tasks yourself. However, there is an increased amount of risk with the DIY option, especially when it comes to the following tasks.

Property management
Many first-time investors consider self-managing a property. However, there are a number of laws and regulations in place to protect both landlord and tenant which you may not be aware of – and accidentally breaking any of these laws could end up costing you thousands of dollars.

Self-managing your property can also become an emotional challenge when dealing directly with a tenant. You form a friendship with this person, get to know them and then it can become difficult to remain professional, especially when issues such as rental arrears or damages arise.

DIY renovations
DIY renovations are definitely in vogue, with every commercial television station hosting at least one reality series on the practice.

But despite appearances, DIY renovations aren’t always all they cracked up to be.

One big consideration is time. If you are looking to undertake a major renovation, you may end up working weekends and weeknights. You’re exhausted after a full day at work and the last thing you want to do is pick up a sander and a hammer and gut a room.

A renovation is almost like a full-time job on top of work commitments, a family and your own hobbies, and it is important to consider whether the loss of lifestyle and quality time is worth the dollar savings.

When it comes to actually undertaking a renovation, small cosmetic touch-ups are doable for the everyday renovator. However, if you are considering taking on a major renovation, it may be wise to consult a professional because if you end up causing more damage than you began with, it is going to cost you more in the long run.

Tax
Finally, when financing a renovation, tax is one task that needs to be reviewed by a professional, as there are many laws and feasible deductions that change on a yearly basis. To ensure you make the most of your property investment, it is important to make all the deductions available – and a professional can go a long way to helping you achieve this.

With that said, if you are looking to save some money, organising your expenses into a speadsheet and ensuring you bring all the required documents when you visit your accountant can save you thousands in accountancy fees.

To discuss your renovation finance options, please contact us at the details below.

 

Anusha Haran on 0406 922 579

The author is an employee of Verante Financial Planning in Castle Hill, Corporate Authorised Representative of Magnitude Group Limited, Licence No 221557, Magnitude Group Limited ABN 54 086 266 202.

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