The UK’s #1 Property Investing Event – MSOPI Training ⁠https://bit.ly/3FqcL4l ⁠ The UK’s #1 Property Investing Event – MSOPI Training London ⁠https://bit.ly/4isD2xs ⁠ Today, Nick discusses the critical topic of holding costs associated with property investments, particularly during renovation periods. He emphasises the importance of budgeting for various expenses, including mortgage interest, council tax, building insurance, utilities, and potential ground rent or service charges. Nick shares personal anecdotes and practical advice on managing unexpected costs, negotiating with lenders, and the significance of using reputable contractors. He also discusses the potential for grants and the impact of opportunity costs on investment decisions. KEY TAKEAWAYS When purchasing a property for renovation, it's crucial to account for holding costs such as mortgage interest, council tax, building insurance, and utilities, even if the property is unoccupied. Local authorities may charge council tax on empty properties, and if a property remains unoccupied for over 12 months, it could attract double or even triple council tax. It's important to inform the council promptly after purchasing the property. Renovations often come with unforeseen expenses, such as hidden structural issues or material shortages. It's essential to budget for these unexpected costs to avoid financial strain during the renovation process. Consider the opportunity cost of having funds tied up in a renovation project versus investing them elsewhere for potentially higher returns. Additionally, time costs can arise if renovations take longer than planned, impacting financial projections. Engaging reputable contractors can help ensure quality work and timely completion of renovations. Recommendations from peers or local property meetings can be valuable in finding reliable tradespeople. BEST MOMENTS "As soon as you've purchased that property, it's subject to certain holding costs. Let's call it an investment, not an expense." "If it's been empty for more than 12 months, it may attract double council tax, triple council tax depending on where you are." "You need to declare to your building insurance provider this property will be empty from here to here." "Unexpected costs often encounter unforeseen issues, hidden structural problems, material shortages." "Use a reputable contractor. Use someone that's recommended by someone else, by a peer." HOST BIO Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations. He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems. Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/