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  • Buy-to-Let

    Where would you start with £200k in London?

    I'm set to come into about £200,000 within the next year pending the sale of a large shared property. I have a mortgage of £150,000 on a 2bed flat I live in worth around £325,000-£350,000. The spare room pays the interest only mortgage.

    With the £200,000 I'd like to set myself up in the BTL business. I'm primarily interested in cash flow having read around. I'd like to keep my gearing reasonable given I'm self employed.

    I'm trying to figure out my strategy in terms of numbers. I'm thinking 70% LTV, min 150% cover of mortgage from net rental receipts, 20% BMV.

    How does this look? Am I looking at this the right way? What is a reasonable net return to be aiming for?

    I'm totally green here so any direction is very appreciated!

    Thanks!!
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    Hi Matty,

    Welcome to Property Tribes.

    £200K is a nice chunk of cash to get started with.

    A good place to start is my "Top 10 must read discussions for novice investors".

    Keep your powder dry, do your research, don't be "sold to", invest in your education and learning, keep an open but enquiring mind , and you will be okay. Smile
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