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I am 22 years old, currently have an annual salary of £23,650 and living at home by choice.
Have saved up £10,000 easily and this is always increasing.I am completely new and inexperienced to this so wanted to know if it was realistic for me BTL and becoming a landlord.
I'm under the impression you can only get a mortgage x5 of your annual salary. I was looking for something more than this because I would make sure I was in a position to be able to afford it if things fell through.Any advice, other threads to help beginners, realistic ideas on where to start & where it could end up.Thanks!
First things first.
Buy your own resi property and take in lodgers.
If you want and you can live at your current home for fred you could let out all the rooms to lodgers
Let us say you charged £500 per room in a 3 bed house.
After all bills you should be able to save about £600 pcm plus savings from your wages meaning in about 4 years time you will have a BTL property.
Buy your PPR first to receive all the tax advantages of lodgers and PPR relief.
You have a long way to go before you ever become a LL.
Go the lodger route to build up a BTL deposit.
If you can buy a 4 bed house even better
No mandatory licensing for 4 lodgers.
I don't think we should judge the guy's personal circumstances. He has every right to live with his parents if they want him too. They may be positively supporting his BTL ambitions.
I will remove my advice on your direction. ( I'm in not inia great mood today and I tell it like I see it)
Let's hope the GRQ brigade doesn't allure him to dark side.
Wish him luck and success.
Coming soon Investorsk8.com
Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs.
Didn't see the post you're referring to but thanks for this. My parents like me living at home and I like it too and figured I wouldn't move out until I had a partner and we were settled. Sensible I think!? I voluntarily pay rent and we're all happy. They do support the idea but we are just not very clued up on it unfortunately but that's why I'm here.
Yes it wasn't a nice post (suggested you were a bit of a spondger) but the poster listened to me , admited he'd been in a bad mood and retracted it! I do think its so silly people are judged for living at home. Financially it's very sensible and greener too...why heat a family home for just 2 people? I hope you get the advice you need. I'm not an expert.
First off, well done for saving, working hard and having an entrepreneurial mindset, unlike many - Young and old! Just a quick bit of advice based on your last message regarding living at home and only moving out once you had a partner and were settled. One thing I would advise, keep your investments and personal relationships as mutually exclusive as possible at your age. You're doing great by standing by your folks, if you're happy with that arrangement, stay for as LONG as you can. In the mean time, keep saving and go down the lodger route by buying a PPR as suggested by someone above. Own that in your OWN name and don't let anyone take a piece of the ownership pie.
In an increasingly dog-eat dog world, look after YOUR interests, look after your folks and be smart. Take it from someone in his early 30's, you've started at a great age and you'll be fine if you keep yourself at the forefront of your plans. Let anyone coming into your life ADD value, but do not entertain the possibility of letting them take a piece of the pie if you ever (God forbid) go your separate ways.
Good Luck Brother!
Just seen this message. Thanks for the encouragement! Yes my first property would be very close to home and my parents wouldn't want it any other way! After taking advice and doing some research, my initial plan is to save up a little more until I can put down a deposit on a 3/4 bedroom house that I could manage to fund myself if no lodgers. Seems the best way for me!
That's most likely the best plan for a number of reasons. Mainly, you'll need far less deposit as a first time buyer of a residential property than you would for BTL. Also, you'll get a much bigger property for your money! Keep up the positive outlook, you'll do fine!
Will I only be able to get a property x5 my annual salary? Is it negotiable?
Fair play to you and I think its VERY typical for 22 year olds to live with their parents still at your age (see ie https://www.telegraph.co.uk/women/mother-tongue/9170709/Why-the-average-British-adult-is-19-years-behind-on-their-life-goals.html ).
Paul Barrett has already made a great suggestion - buy a big house and stick up to 4 lodgers in it...the tax treatment is better than BTL and you are around to keep an eye on the lodger(s)...Your eviction options are also much better than a BTL: https://england.shelter.org.uk/housing_advice/eviction/eviction_of_lodgers_and_other_excluded_occupiers
Good luck with your journey, Sam