Budget and Plan for Life

11 Sep Budget and Plan for Life

Successful property investing takes a good financial strategy, and knowing exactly how much you can realistically (and conservatively) afford to spend each month. But, are you factoring personal expenses into this, or are you strictly focused on your investing budget?

It’s advisable to go into investing only if you already have a healthy financial cushion that can cover unexpected events such as emergency veterinary care or car troubles. But – what will happen if you need to tap into that emergency fund because the unexpected occurred in your property development project?

Seasoned property developers will have a financial buffer in place for each of their projects so they don’t have to tap into their personal reserves.

The question is: do you?

New investor/developers tend to underestimate how often unexpected costs occur on a development project. Small silly things add up, and delay your project. Every delay adds up to more money coming out of your pocket for a project that isn’t finished, and isn’t sold or rented!

The council takes its sweet time approving your project. A subcontractor goes missing for three days. Key materials are on backorder, out of stock locally. Somebody cuts their finger and has to take the rest of the day to get it stitched up. A machine won’t start. There was a miscalculation on the amount of materials needed, and somebody has to go get more. The inspector doesn’t like something and demands that it be torn up and done over again. And let’s not forget Mother Nature’s shenanigans!

In a perfect world, investors factor in delays and added costs such as these. But we don’t live in a perfect world and it’s all too easy for development projects to become money pits.

What can you do?

First don’t start on any property investment project unless you have the financial reserves to cover not only extra expenses related to the project, but also your personal living expenses – even if you have to tap into your personal reserves.

Second, work with an expert property development manager like White Gorilla. We take all the anxiety out of budgeting and ensure that the project sticks to your timeline.

We’ve been doing this for so long, that we’ve experienced practically every scenario. We act as your trusted guide throughout the project. We help you formulate a budget. We know how to anticipate problems, and prevent them from happening. We also have access to a huge network of trusted professionals who can step in and keep things moving on track should key personnel be unable to continue.

Ultimately, the longer a project drags on, the greater the drain on your reserves. This can be extremely stressful. It can take all the joy out of your project – and it’s the #1 reason many new investors quit the game. At White Gorilla, we want you to stay in the game. We want you to have great property experiences, and we want you to grow your wealth. Give us a call! Our services will increase your ROI, and help you build your real estate empire.

Social: Don’t make the mistake of underestimating the potential hidden extra costs of a property development project… to the point you start eating into your personal reserves and having to make personal sacrifices. Here’s how to do it right.

#havehealthyreserves #expecttheunexpected #keepitmovingalong