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  • New Members

    New in property at all

    Hi all.

    My name is Pawel, happy to join PT group. I'm very new to the properties, I even don't own my house, and I here I've got my first Q, do you guys know if I can get a residential mortgage for property worth around £300-330k (living in SW London) if I have only 20k savings? if you know anybody who can help me or give some advice, thanks in advance...

    Another thing is, that like I mentioned earlier my capital is very poor, I'd like to do flips with OPM, friends of mine are turning me down when I'm saying I'm gonna do that, "you have to have tonnes of money, and you're inexperienced and no one will trust you in that business" they say.

    but im going to proof they are wrong and will attend as many networking events and be building my network till success Smile

    Btw. I bought Deal Packaging course with the progressive property, not sure if it was a good move, I've got training in 2 weeks, anybody has some opinion about them??

    beyond that just want to say a big hello to everybody!!!!

    Have a lovely weekend

    Pawel

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    New in properties... Driving by huge inspirations to be successful... Stay strong! Peace

    Hi Pawel and welcome.

    A residential mortgage is based on your income. If you are living is SW London, I expect property prices there are quite high, which means you may need quite a substantial salary in order to buy a resi property.  

    With regards to your £20K, I fear you are going to struggle and I have concerns that you will spend most of that money on training, and then find that you can't actually buy anything.

    Have a read of my free deal sourcing course.


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    thank you Vanessa for reply!

    I know that £20k is close to nothing, especially in London...  Regarding to trainings, my relatives says that there's not point of doing such as its lost of time and money, they believe that courses are like pyramids, once you buy one you have to buy another to know what you should know from the 1st one.

    I'll have a look on the fee deal sourcing deal,

    Thanks one more time!

    Best Pawel

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    New in properties... Driving by huge inspirations to be successful... Stay strong! Peace

    Your relatives are correct in the respect of many training courses having up-sells to more and more expensive products.

    With £20K you could potential get one BTL property up North.  However, you will need to have a good credit rating and be on the electrol roll at the very least, to have a chance of buying using a BTL mortgage.  You could possible look for properties valued around £60K.  If you can find something where you can add value through refurbishment, that is a good way forwards in the current market conditions.

    If you cannot get finance, then you will have to look for a very low value property and buy it for cash.

    Some suggestions of where to look here:

    Where is the cheapest house in England? 

    It's great that you have such a positive outlook, and that will serve you well, but please don't get sucked into schemes and courses promising you easy and quick riches where you don't require much money.  You must make sure that you do not spend your £20K on a ticket to see a Unicorn. Smile

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    I said to my self that the course that I bought is the first one and the last one... I've spent on it £1.7K and trying to make myself convenient it's going to be worth...

    I'll have a look on properties in cheaper areas of UK, but distance my by the problem.

    Im Gas engineer, running my own small business, so I need to be in London for all the time to keep business working... But I'll check somewhere not too far from me...

    Thanks for review of the trainings and courses, in Progressive Property all trainers are so successful, and all their assets were built with no money down at all, they know how to sell stuff (courses) ?

    Now going to dive into posts, as I'm newbie I have plenty to learn ?

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    Not realisic in my experience. You need a good buffer for voids. You also need to realise that if this is an investment property your interest rate will still be higher than a residential mortgage, also if you ever want to buy for yourself then you will pay 3% extra stamp duty.

    Our first foothold in London came as we could borrow against equity in our home so it was cheaper. BTL Lending rules are tougher now than when we started too. £20k in London would be expenses and for a cheap property a brief void period but wouldn't be a deposit. Sorry.,

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    hi Fiona 

    I thought I have to have at least £45-50K to buy something in reasonable areas like Sutton or Carshalton (2 bed house), but from another point, I had a think that there must be some other way to buy property, was even thinking to take loan on my fiance £20k to add that do deposit and buy house just on my name Wink but it becomes to be tricky... best option to is wait another year or 2 to collect bigger amount of money

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    New in properties... Driving by huge inspirations to be successful... Stay strong! Peace

    I personally wouldn't buy anything now with less than 40% deposit.

    More because the interest rates below this level make it very difficult for most. Also taxation benefits on mortgage payments are changing. 

    So in my area of SE London that would mean £100k deposit *plus* all the fees for stamp duty, legal fees, voids, redecoration, gas checks, electric certificate etc etc.,

    That would then be an ex local authority terrace in a good school area. (I personally wouldn't choose a leasehold despite owning one fairly simple leasehold one).  

    We also couldn't make the sums add up so well if we paid for someone else to manage. We get very small voids, we can choose our tenants and deal with maintenance issues quickly and often at the cost of a screwdriver - for more complicated jobs we have a good set of  local tradesman we can trust and have special rates with them.

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    if i had to wait to buy property with 40% deposit, I'll never buy one, properties prices are going up every year, inflation does the work, so in that point Ill buy my first property in 50 years Wink

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    New in properties... Driving by huge inspirations to be successful... Stay strong! Peace

    You have just wasted £1.7 k on that stupid course.

    Forget London you aren't anywhere near being able to purchase.

    You would need to go to cheaper areas up North etc.

    But no chance of CG.

    As you probably have experience in your job, you could use those skills to work on any property.

    You probably have lots of contacts such that you would be able to refurb a property pretty quickly and fairly cheaply.

    I would suggest you try and source somewhere in the South- East.

    Preferably a Freehold, run down terrace property that is near a train stn that goes to London

    Try and find a two bed terrace that could take a loft extension in the future.

    Look at the investment in the Thames Gateway Port.

    This will be the biggest port in the UK at some stage.

    Workers will need somewhere to live.

    There isn't much housing in this area, so a rental property will be in much demand.

    You might even need to go to coastal areas to find cheap enough property.

    It could be that even the cheapest SE property now exceeds your affordability criteria which leaves you little choice than to go North or to Wales.

    There you will see little CG and the tenant demographic is risky.

    The eviction laws can destroy any yield you might achieve as it is highly unlikely you would be able to source RGI on such tenants.

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    thx Paul for your opinion and advice.

    that £1.7k i spent, hmm I still try to convince myself it will be worth as the course is in 2-3 weeks... I know it may seems foolish  Wink

    thank you for suggestion of properties in South-East and up the north or Wales I'll definitely check it out.

    honestly I was thinking about small property on the  beginning to purchase in London, like a 1 bed flat that Ill live in, reason of that  is that it will be my 1st one and SDLC will be lower on the first one which will be quite expensive to me! and all the next buy to lets can set up in north or wherever is enough cheap for me... if that make sense.

    BTW what does it mean CG?

    thanks once again! have a lovely week


    Pawel

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    New in properties... Driving by huge inspirations to be successful... Stay strong! Peace