Taking control of the budget

Property investors can do themselves a huge favour by taking control of their budget.

Too many investors have little idea of what they spend their money on and could be just weeks away from disaster.

Owning investment property requires a double dose of budgeting.

First up, investors should have one budget for personal expenses.

But they should then have another for the actual property itself which will require money to be set aside to cover rates, insurance, periodic maintenance, upgrades (aka capital expenditure), taxes and also downtime between tenants.

Budgeting isn’t easy.

But it’s a tool and those investor who do it well benefit big time.

In the January issue of NZ Property Investor magazine, we look at what investors need to do to wrest control of their budget.

Some of the tactics explored include budget planning, rethinking rents and fixed costs, keeping costs down, maximising tax benefits and creating a buffer.

To read the full run-down on how to take budgetary control, click here to get the digital issue of NZ Property Investor magazine.

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