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Stay away from HTB /Leasehold
So you will soon have joint income of £57k - and whilst that could get a loan up to 4.5 x S (£256500) that would typically have repayments at £1350 pcm.
Your partner should be able to save £1000 pcm - and if not suggests maybe an issue if expecting to share mortgage/bills
You also need to allow for starting a family (almost half of UK pregnancies are unplanned!)
If you were living together in anew home and say running 2 cars - realistically household bills would be around £1000 pcm plus the mortgage.
MMR goes in to forensic detail on spending habits - so make sure you both have no credit card bills or other loans - and no big spending on holidays/nights out etc - self imposed austerity now will repay you 10 fold in future.
I believe I could save between 1000-1300 pcm. So the best plan for me is to hard save for the next few years to get the 20-30% deposit then buy my own house and take in lodgers.
When I get to that stage, how long would it be before I start to see equity in the property? Also roughly how long before I would get to my second and third properties?
That is exactly what many of us did Rhys - was never easy per se to get on ladder - but a lot more difficult today
Whether you can get g/f on board with lodgers is another matter - but need to choose the house carefully so you can retain some privacy.
As to longer term potential we are facing unique challenges across UK economy with Brexit/falling real wages over past 40/50 yrs.
In London/SE prices are stagnating/falling - so v diff to say when any chunky amount of equity will be gained from a new purchase - other than the natural loan decrements via Repayment Mortgage.
Historically going back to 1970s average age of FTB was around 25 - but has slowly crept up to around age 30.
Of course the 1970s group would have started work at age 16 (less than 10% went to Uni) - whereas around half of today's young adults go to Uni and enter work at 21/22 or even later.
UK only reached 50% home ownership in 1971
100 yrs ago UK had 78% in private rentals - but we had rent caps/controls in place from 1915 to 1989 so PRS shrank to a low point of 11% by 1981 - though has since increased to 20%
At present Tory Govt is taxing BTL to nth degree - and any Labour Govt would do even worse
So PRS had a good run from 1989 - up to 2015 when taxes were boosted.
The future is very opaque at best
Thanks for all the information I have definitely taken it on board!
One last question as I don't want to annoy you too much ?.
I work 4 shifts on and then have 4 off so quite a good bit of time on my hands.
Doing research today and looking at the videos Vanessa shared about young entrepreneurs. Would it be possible for me to maybe try reaching out to landlords and try offer services as a property manager. After obvious training and research on how to do it correctly.
Is that something I could possible do from home as a side job for extra income to make my goals of becoming a landlord quicker?
Thanks for all the help again it's truly appreciated.
Welcome Rhys - do you have practical skills in say plumbing etc to offer landlords?
You would need PI insurance to work in other people's houses.
You could not work on heating or electrics unless suitably qualified NICEIC/GAS SAFE.
Other members may have other solutions for your spare time - though painting/decorating springs to mind as that is usually needed at end of tenancy - though many LLs do that themselves.
Another option is to get a part time job with Letting Agent and you could do viewings/Inventories which could get you dealing with prospective tenants as well as a feel for what you would be letting yourself in for when letting self contained property where you have little control of how the property is looked after.
I actually worked as an apprentice plumber for 2 years and have the plumbing qualifications. Unfortunately not gas Safe but I have a good connection as my boss was a gas Safe registered plumber. I also was painting and decorating from the age of 16-18 so that could be something for me to look at anyway.
Thanks for the advice I'm going to research and evaluate everything to try and smooth out the best path for me. Your advice and time was much appreciated!
In view of Rhys' age, I thought the below content might be of interest. It is well worth sitting down with a cuppa and watching the interviews with these inspiring young people, one of whom is just 16 years old!
Monday - Hasan Sadik / Karan DavatwalTuesday - Sam Zawadzki / Luke GilbertWednesday - Niraj Patel / Kenneth KellyThursday - Denzel Matsaudza, / Ara MawatyFriday - Semsettin Karahan / Aiden Pattison & Rob StaceySaturday - Alex Kountourides and Rob Davis / Tom Carr
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thank you Vanessa!
.I will get through them right away.
I am curious to hear, what is your views on LoA's and R2R's? They seem to be to good to be true?
The other advantage of buying your own home (not buy-to-let) to start is tax.
With a rental property, you will be taxed on the rental income and gain when you sell.
With a lodger in your own home, the rental income might be completely tax-free (see Rent-a-Room scheme) and the gain when you sell might be entirely exempt (see Principle Private Residence relief). So you might not even need to grapple with filing income tax returns. (Obviously, check the facts for your circumstances.)
Congratulations on taking your first steps into property!
Personally, we think you could buy your first house with the 5k you already have saved up. Ideally you would want to buy your own house, but you could rent out one of the rooms to help cover the costs. While blogs, videos and podcasts are useful, this is the best way for you to learn about property and tenants.
Which area are you from? As this way we can see what properties are best available for you locally.
If you have any more questions please don’t hesitate to ask.
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