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  • New Members

    Advice on 50k first investment

    "I have managed to save up 50k and I am currently capable of saving up about 1k a month after living costs and rent"

    So do you not own your own home?

    Most - maybe all(?) - BTL lenders will insist that you're a home owner.

    One possible option to get you into a position where you'd be able to get your own BTL loan would be to get a high LTV mortgage to buy the most expensive 2-bed property that you can stretch yourself to in an area where there's good potential for capital growth.

    You'd then take advantage of 2 government 'concessions'

    1. Rent-a-room relief for a tax-free £7,500pa.

    2. Landlord-friendly lodgers tenancy, which allows you to get rid of a tenant without a court order.

    Then, hopefully, after say 3yrs, if the property market in that area has moved in your favour, you'd have enough equity be able to sell  that property and buy a cheaper home for yourself and still have enough cash for a deposit on a BTL property. 

    To follow my own strategy, I would then bide my time with the aim of buying the most expensive home I could afford, which gives tax-free capital growth.

    As many people on this forum will tell you - read everyone's posts carefully and you'll eventually start to get a feel for what's what (technical landlord term), and after that you can take the bits which might work for you. 

    Good luck to you!


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