The human race has demonstrated a great deal of curiosity, and ingenuity, and with the right mindset, the majority of humans are frequently successful when they pursue those ideas. To put it another way, when good enough is not sufficient, we seek out more. This is a positive trait since it indicates you are not settling for anything less than the best. Side hustles have not always been officially referred to as such, but the concept is as old as money itself. The Great Depression of the 1930's, for example, forced people to find other types of employment to make ends meet. The idea of course continued to permeate later generations where even students like myself turned to paper round jobs and call centres to support themselves during their college years. Side hustles were coined in the 1950's, and just for clarity, they are jobs you do in addition to your main occupation. The activity may begin as a hobby and eventually turn into a source of income. When we view every culture, every family household in which hard work is taken seriously, this has shifted the paradigm of work-for-money transactions completely. Not only have side incomes become increasingly popular, but the industries in which to earn an income have become very diverse - this includes people earning an income through e-commerce, social media channels, blogging, and freelancing outside of their regular jobs - a luxury that was not available many years ago. A survey conducted by Aviva reveals that one in five UK adults (19%) has started a 'side hustle' since March 2020, and almost one in six (16%) claims to earn upwards of £1,000 a month from their new venture.
But the most popular side hustle in the UK has always been PROPERTY.
Novyy is a specialist platform devoted exclusively to helping investors with property investing, so we place a greater emphasis on tools to starting a property investment business. There are two distinct approaches to investing in property, the first of which involves the development of a property portfolio, which consists of a collection of properties or property fractions owned as investments. An individual, a group of individuals, or a company may own the property. The purpose of building a property portfolio is to increase wealth and establish an income stream. Alternatively, if you view property investing as a cash-flowing business you can scale, you should consider much more than just a few property fractions. Every professional, including ourselves, will agree that investment properties are difficult to sell and often leave landlords out of pocket in the process. Our easy-going buy-to-let fractions provide investors with a range of services that estate agents are simply unable to provide, and this helps to put your mind and business journey at ease. We will examine the steps involved in starting a property business, some tips to keep in mind along the way, and how Novyy can assist you.
Steps to building your property business
Start your business idea
First and foremost, a business plan will help you align your objectives in a much more effective manner for your property acquisition strategy and allow you to better understand the rental market. Whenever possible, you should seek advice from individuals or organisations with more experience. A forum such as The Property Hub Forum can provide you with the opportunity to converse with other property investors and to gain a deeper understanding of the industry.
Make realistic investment decisions
Ultimately, you are limited by the amount of money you have. The money you have available instantly can be used to look for the most suitable properties for a deposit. Not only do you need to have the money to see the available assets, but you also have to ask yourself whether you have the time and contacts to follow through on the initiative in the long run. You'll be well positioned if you have contacts within the real estate industry - letting agents, estate agents, mortgage brokers, and refurbishment contractors. Co-operation will always prove to be more beneficial, since not every financial matter will be handled by one individual.
Apply for funding
You will most likely require a mortgage if you are going for an investment property and you seek to leverage your equity as much as possible. Getting in touch with mortgage lenders and brokers is a good idea right at the beginning of your business plan.
Learn about the tax implications of your investment
Income from property is taxable. Remember not to spend all the income as a part of it must go to the Taxman. An accountant can help you figure it out. Alternatively, there are loads of online resources available to guide you through.
Find an insurance company
Investment properties must be insured - it is the law and your mortgage lender (if any) will also require full coverage of their investment. But even if it weren't a legal requirement, it makes sense to have an insurance that covers the full reinstatement value of the property.
Setting up a property business with Novyy
If all of the above looks very complicated and time consuming - look no further. This is why we started to Novyy - to help people like you.
As a new investor, we can assist you in picking the right buy-to-let property fractions, provide guidance on what will help maximise its income and provide you with a realistic estimation of how much your investment will generate. Here at Novyy, our business model is about making real-estate investing easy. Our FI-to-let product eliminates all of the pitfalls associated with traditional buy-to-let. Why is that?
We take care of everything for you. You will not have to worry about acquiring properties, conducting due diligence, paying management fees (including taxes) funding the mortgage, or continuing to manage the property on your own. With Novyy, you can buy 1 fraction or the entire equity available while Novyy arranges for upto 80% LTV Mortgage. This makes us the perfect investing platform for you. Would you like to invest in an HMO? There could not have been a better time for you to arrive. Our focus is to find the finest opportunities in the right market and in the right location. Therefore, we source HMOs and single-family homes and perform detailed technical and pricing due diligence on these properties. Our commitment to trust is one of our key pillars, and we strive to provide our clients with nothing but the best investing partners.
And here's the best part - our business model is fully aligned with our investors via our carried interest model. Majority of our revenue comes from the 25% carried interest in the capital gains of our properties. This means, for every £1 we earn in carried interest, you earn £3. Thus, it is in our interest that we work hard for you.
Please contact us today for a friendly chat. We are here to assist you in the process.
Our portfolio level investing is hassle-free. You can buy-in one time or make periodic investments. We source, acquire, finance and continue to manage the assets sending you a cheque every 3 months. If you have a long-term investment mindset and would like to build a cash-flow stream for decades to come, Novyy is your ideal partner.