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  • Buy-to-Let

    Making a start in property with £20K cash?

    Hi all,

    I have a quick question which has ultimately been asked a thousand times but I have a slightly different spin.

    I have my own home in the UK which is currently being let out as I have lived in Spain for the past year. Now I have inherited about 20k and I was thinking of a buy to let.

    I was also thinking of starting a business and a little stuck which method of operation would be best.

    After careful consideration I feel like postponing the start up of the business investing in a buy to let with a view of refinancing a year later to get 10k out of the property. I understand that valuers are shy at marking up properties even that have had quite a bit of work and finding a bmv deal is hard...but

    I would hate to not see any return of the little bit of inheritance. Your thoughts ?

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    Hi Sca,

    Thank you for sharing your post, can see you have really put the time and effect into thinking about which option to take.

    Everyone will have different opinions but do what is best for you and your circumstances. I think you have a really good plan action. Granted it may take you a year to start up your business but this strategy allows you to both.

    If you don’t mind me asking, what area are you looking at to invest in?

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    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.

    With respect 20k today won’t take you far. In BTL in 2019 

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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.


    Hi Andrew and welcome.

    There are two immediate issues I see with your plan:

    1.  £20K is not a lot to start with.

    2.  If you start a new business, you won't have a track record for financing purposes, so you may struggle to get finance.

    It's easier to get mortgage finance while you have a regular and provable income.

    The big elephant in the room is .... do you have any equity in your residence?  Can you release any to increase your cash pot?

    ​Perhaps if you could let me know, I could give more prescriptive advice.

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