Should You Buy Your Own Equipment for Your Property Development?
Depending on what type of property investment you delve into, you may be faced with a common dilemma – should you buy your own equipment?
When you renovate or build to sell, for example, you may need to dig, haul and landscape on your property. This almost always involves the hiring of equipment or specialised companies.
If you are the hands-on type that prefers to do the work yourself, you will still end up paying top dollar to rent the machinery for the job.
If you prefer to have the work done for you, it will cost significantly more to get it done.
Should you buy your own equipment? Here are 2 factors to look at…
Degree and frequency
The decision to buy equipment will come down to how much you intend to use it and how many uses it has.
An excavator, for example, can assist with various construction tasks and if you intend to continue on a path of building or flipping real estate, the savings could be worth it to you in the long run.
A small bobcat has a ton of uses when it comes to building and landscaping and owning one could make your work life much easier.
Is it in your budget?
Owning capital is almost always ideal – but it is not always in the realm of possibility. It is important to do a realistic check on your finances to see how long it will take you to earn back the cost of buying the machine.
Running costs and future value should also be in your consideration for buying – what seems like a good idea now may not turn out that way on your bank account.
However, also keep in mind that once you own equipment, you can then rent it out to other contractors and companies to make up for some of the payments and costs.