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How to overcome the Credit Crunch, Part 1

Times have been hard for the majority of the population lately – the credit crunch has hit many hard. The important thing is how we deal with these difficulties and how we overcome any obstacles that may arise. This article summarises some ideas to saving money during these times.

Become your own estate agent

The downturn in the housing market means estate agents will be suffering.  Hence, it is a good idea to negotiate the estate agents commission.

Or why not just do the job yourself? This way you can cut out the middle man, keep the commissions and take control of your biggest asset.  If you do plan on becoming your own estate agent, then it is important to note the following:

  • Make sure your property is looking as good as it can.  For example, remove clutter, trim hedges, tidy up the garage and ensure all rooms are decorated and clutter free.
  • Advertise your property.  Get a for sale sign up, which can be purchased on the internet.  Advertise your property on the internet, there are many property websites on which you can place an advert free of charge.  You can post an advert in the local property newspaper, local supermarket, newsagents, universities, hotels, councils, libraries – the options are never ending.  Designing and distributing leaflets in local shops is also a good idea.
  • Welcome viewers with a smile.  Take people through the house at a steady pace, answer all their questions, give the potential buyers time and privacy to inspect the property.

Sit it out

Another option may be to sit it out; absolutely do nothing.  You can virtually mothball your portfolio, rent out everything you can for whatever money you can get, take to the country and sit it out.  It’s better not to sell in tough market conditions.  If you can just sit tight, pay the bills and let the storm pass, eventually what goes down will come back.  Property is incredibly resilient and will bounce back over the long term.

Create several sources of revenue

Never put all your eggs in one basket.  Be flexible, be brave and be creative, it could save you thousands of pounds.  If you are struggling to pay your mortgage, one option is to rent out your property and move into a cheaper home.  Another option can be to take a lodger; you can get tax reliefs on lodgers and receive up to £4, 250 per annum in rent with no tax to pay.  You may want to rent out your car parking space.  Be imaginative: take advantage of the visitors who come here every year – rent out a few rooms, or you house for a few weeks to generate extra income.

A work partner

It may be an idea to introduce a work partner to your business.  A good partner will bring their skills, expertise, and hopefully money into the business.  This may just be enough to keep your business alive through the storm.

Stay focused and be strong

There is no doubt that an economic downturn is a challenging time for every industry.  In order to remain focused on your business you need to be as fit as possible, positive and determined.

These are some valuable tips for all those in need of some guidance.

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