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  • Buy-to-Let

    £120k to invest

    Dave, just remember there is plenty of free information out there (Property Tribes and TPP podcast are great), you don’t need to spend thousands to someone to teach you how to be a millionaire within a year.

    Take your time, formulate your strategy, and take action.

    Get a good mortgage broker and discuss your finances with an accountant.

    Go for the people you get a good feel for and if anything looks too good to be true it probably is. I am in a similar position to you, relatively new with a bit more than you to invest.  If you fancy meeting for a tea in North London PM me.

    Best of luck!

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    You don't need to spend the money to buy low end properties. You could for example follow a serviced accommodation / short term letting / holiday letting strategy, and do this in a rent to rent basis - so that your undoubted difficulty in obtaining mortgage lending should not be an issue.

    There is aome great info available - just don't get sucked into paying for "masterclasses" or mentoring - as these tend to promise a lot but are very expensive (£5-20k) and the info is light on risks (e g ensuring you have the right insurance, freeholder consent if the property is a flat, mortgagee (lender) consent if there is a mortgage, etc).

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    If your looking for revenue have a look at assert crowd funding where you borrow to a developer short term 6mts and they pay up to 15% interest. The company put a funding co get a charge in the property. Funding secure, funding circle among others. You can spread you investment around borrowers. But please research before you commit.  Good luck

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    I have a portfolio of 7 mixed commercial residential in Hull with only slightly more equity than you and a monthly income of 3,300.00 roughly.

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    I've been looking into holiday letting recently and the management fees and other costs can be quite steep and you have to maintain it in pristine condition. I'm not convinced it's that good for yield unless you run it yourself, which I would not be able to do. I do think it can work as a long term investment in the right area.

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    I ran a Holiday Home Business in Northumberland. I found the Gross yields high But the Net yields low

    It was just not for me, although I did have a Five Key top rating from the Tourist Board at the time.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I think talking to a mortgage broker first is pretty critical to determining your strategy. I know its very hard (impossible perhaps) to buy you're own home without an income if you need / want a mortgage its also very difficult with BTL mortgages these days - i think some exist without proof of income but not many and its a bit of changing boat so knowledge on gearing is pretty crucial - as 120k won't go that far if only ever cash spending.


    You potentially can work with a family member or close friend with some legal agreements that protect all parties - then you might find getting mortgages somewhat easier.

    You could look JV with someone willing to educate you so you could leverage your money, buy into potentially successful projects / properties and learn at the same time (spend time find the right person/company if doing this as its not straight forward and potentially risky if not structured correctly).

    crowd funding platforms are great for the right people - but also can be risky if you don't investigate the detail behind the company you're investing in and their financials - although you might not learn that much and it isn't really your projects. you also can't earn quite as much as doing it well yourself.

    buying small valued property cash isn't always a great strategy as they can be quite time consuming to mange - both tenants and maintenance. also hard to get funding on either to buy or to release cash to buy again - especially when combined with your current lack of provable income.

    also how likely is your current PAYE income situattion to continue - are you likely to get a provable paid job or is the plan to now be self employed? self employed takes a while before lenders are happy to lend often need 2-3 yrs full accounts before they'll even consider lending.

    good luck as you've done really well to build up that capital by age 28!




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    regards Andrew Peers - property investor / sourcer - 07912674181

    a.peers@seamlessproperty.co.uk

    Property Redress Scheme Number 011436     NLA member 174404


    Thanks all for the advice. I think the next step would be to talk to a mortgage broker as mentioned and see where to go from there

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    Hey Dave, could you provide and update on the decision you have taken and how it worked out for you?

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    Hi Dave

    Having helped a large number of people in a similar situation to yourself, an option to consider is buying a property cash and letting it for 6-12 months which is when many lenders would consider you an "experienced landlord" then remortgaging it at 75% and buying two more, each with 75% mortgages. Assuming you buy the right properties, this should give you a good yield and exponential for growth. Keep in mind that £120k is probably not enough to generate enough income straight away to live comfortably so generating some growth in equity is going to be important for you.

    Given you're unemployed and a first time buyer, even buy to let mortgages would be tough for you right way but once you've owned a BTL for 6-12 months it becomes a lot easier.

    Choose wisely ideally in an area with a lot of depth in employment, infrastructure and amenities as that drives demand. Happy to help further on strategy and property selection if you feel as though you could benefit from some professional advice.

    Good Luck!

    Paul Mahoney

    MD at Nova Financial Group

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