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Hi Property Tribes! New member, great to be here.
My name's Ben, and I'm a website designer based in Bournemouth, looking to make my first strides into property.
So far I've been along to a few meetups, the Samuel Leeds Crash Course, and absorbed lots of books, podcasts, videos, you name it! But I want to go up a gear and increase tangible action, which is part of the reason I'm here.
I've been advised to start off simple, and so am looking initially at buying small flats for single let. However, I'm also really interested in serviced accommodation as a longer-term strategy.
Great to be here, and feel free to ask questions if you're so inclined!
HI Ben and welcome.The main thing that will dictate your strategy is finance/money.If you are a cash buyer - no problemo!But if not, you will need:1. 35% deposit, stamp duty, and acquisition costs2. Access to BTL mortgage products.Without the finance, it's all a moot point. You are dead in the water for "ownership" of investment property.So, the very first thing to do is speak to a reputable mortgage broker to establish what financial products you have access to with your individual profile.Now to strategy - serviced accommodation is a strategy for more experienced and hands-on landlords and I wouldn't advise you to start with that. It is logistically intensive and time consuming and has many regulations and compliance to deal with.Single occupancy BTL is a low risk way to start and learn the ropes, but I am not a fan of flats, and would recommend a freehold terraced flat.I explain my reasoning here: 10 reasons to buy a house rather than a flat .... EVERY time.So, speak to a reputable mortgage broker and then have a look at:Top 10 Property Tribes resources for novice landlords and BTL investorsEverything is contained on this site to help you move forwards.I hope that helps for starters?Related content:Samuel Leeds property courses
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**
Hi Vanessa, I assume you mean freehold terrace house rather than freehold terrace flat?
Also would you say 35% deposit was required although better than 25% most people could start with 25%
Yes, was referring to freehold houses. With regards to deposits, since the advent of the PRA, it is harder to get deals to stack at 75% LTV, hence why I indicate a potential larger deposit required. Furthermore, for specialist lending for such strategies as holiday lets and short term rentals, the LTV's available tend to be lower.
My favourite quote is by Mike Tyson which I can relate to, "Everyone has a plan until they get punched in the face."
Nothing is as easy as anyone makes it sounds on a course, we have been in the process of buying property in the NW (3 hours away from home in London) and it has been a real slog to buy the right properties. It would have been really easy to picked one off rightmove without conducting real research into them and knowing the area on a street by street basis.
You need to firstly look at how much time and finance you have. Can you even get a BTL mortgage? What is your credit report like? How much time do you really have to spend?
Personally, single let BTL is less attractive on paper - but a lot less grief, and this is what I want. Everyone is different but I would think carefully before buying a flat, leasehold charges can damage your cashflow, we had an ex-council property in North London and the fees were astronomical for even basic works. In my opinion people stay longer in houses - Families who have kids in local schools are committed, and voids massively reduce your yields. But again half the people on this forum may disagree with me. Also leasehold properties could potentially have things written into the leases so that you may not be able to do S/A.
Look for yield, you only want properties that yield sufficient high enough to get you through the bad times and don't be in a rush, don't put any money into anything unless you are 110% sure - be wary of your natural conformation bias, look for people who disagree with your decisions and find out their reasons why.
Best of luck
100% agree with you. Thanks for your contribution.
Thanks both, I thought I had posted a reply weeks ago but it must not have posted!
Appreciate your candour and will be sure to tread carefully.