Nova Financial Ltd featured in Property Question Time on the Property Sky Channel 198
Our Managing Director Paul Mahoney on the Expert Panel:
Bonnie Bilson: Hello and welcome to Property Question Time. I’m Bonnie Bilson and this is the show where you get the chance to have your questions answered by our resident property experts. So let’s see who we have in the hot seat today. First of all, a warm welcome to Paul Mahoney, founder of Nova Financial Limited.
Now, my first question goes to Paul and it says, “I’m considering using the equity in my current home to enable me to buy a smaller property to rent out. The figures work out in principle but are there anything that I might not be aware of which could turn my modest monthly cash positive position into a negative?”
Paul Mahoney: Well, it’s very important to make sure that you’re over accounting for costs and under accounting for returns. It’s so surprising how many times we come across people that do their calculation at the back of an envelope so accounting for things like property management, maintenance, service charges, ground rent, whatever might go into maintaining this property and keeping it running, but also accounting for things like vacancy rates, potentially lower rent than you expected. If you do over account for your costs and under account for your returns and you probably won’t be surprised at the downside.
Bonnie Bilson: Brilliant. Thank you. I wanted to do something more than using a back of an envelope. What would you recommend for-
Paul Mahoney: Well, there’s a range of quite useful spreadsheets that you can get off the internet yourself or you can seek advice from a professional adviser that would put together a much more comprehensive calculation for you.
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