lapin2008 1,587 Posted March 17, 2014 Report Share Posted March 17, 2014 Born hunter wouldn't say that as some know on here my old boys got quite a portfolio of properties in the UK & abroad. I know when he started he needed a lot more then a poxy £20K Its enough to get a deposit on the first one providing you have the mortgage for the rest. If you're getting run down places, moving into them doing them up selling them on at a profit you can within a couple of years turn that 20k into more. Worst case, 20K can be a deposit for one you can sit on it till the house prices start to move and the banks get more confidence to lend, then borrow against it and start again. or just sit on it with tenants paying off the mortgage without getting any more houses. Its a slower start than it was 15 years ago but it is still a start in property. With either approach you're obviously not going to make a full living from but if going into property is what you want Quote Link to post Share on other sites
mushroom 12,393 Posted March 17, 2014 Report Share Posted March 17, 2014 Look at it from two angles short term or long term; Short term - Charlie Long term - rent a farm and grow weed :laugh: 1 Quote Link to post Share on other sites
unlacedgecko 1,466 Posted March 17, 2014 Report Share Posted March 17, 2014 I bought my first house in 2009. Put down a 15% deposit (17.5k when solicitors fees etc included). Had tenants in it ever since. Currently they cover the cost of the mortgage but rent is going up soon, and the mortgage loan to value rate decrease means I'll soon have a small income from it. This will be ploughed back into the property, reducing the mortgage balance. I aim to have 40 such properties by the time I retire at 50. 3 Quote Link to post Share on other sites
lapin2008 1,587 Posted March 17, 2014 Report Share Posted March 17, 2014 I bought my first house in 2009. Put down a 15% deposit (17.5k when solicitors fees etc included). Had tenants in it ever since. Currently they cover the cost of the mortgage but rent is going up soon, and the mortgage loan to value rate decrease means I'll soon have a small income from it. This will be ploughed back into the property, reducing the mortgage balance. I aim to have 40 such properties by the time I retire at 50. Exactly mate! and good plan. Quote Link to post Share on other sites
Born Hunter 17,639 Posted March 17, 2014 Report Share Posted March 17, 2014 Born hunter wouldn't say that as some know on here my old boys got quite a portfolio of properties in the UK & abroad. I know when he started he needed a lot more then a poxy £20K That's great for your lad, but like I said, I know lads right now making pensions and/or getting short term returns through property with a 20k budget. One lad is looking to sell now with an estimated 30k profit and another is renting through an interest only mortgage, he'll see monthly returns on his investment and then in 30 years when he retires a lump sum, factors of his investment greater, through the properties sale. It's doable if you have the savvy. Quote Link to post Share on other sites
keepdiggin 9,223 Posted March 17, 2014 Report Share Posted March 17, 2014 Born hunter you are a very clever lad I have no interest in getting in to a debate with you as I would more then likely lose With the £20k you use to invest in a property how much would you be using for the deposit? how much would you use for the refurbishment? Whats plan b if you cant find a tenant? Quote Link to post Share on other sites
Born Hunter 17,639 Posted March 17, 2014 Report Share Posted March 17, 2014 (edited) Born hunter you are a very clever lad I have no interest in getting in to a debate with you as I would more then likely lose With the £20k you use to invest in a property how much would you be using for the deposit? how much would you use for the refurbishment? Whats plan b if you cant find a tenant? I'm not smart, I just think too much. It all depends on finding the right property, something between 40-70k and the right mortgage deal. Interest only would be the way to go to keep repayments low. Maybe it's easier in the East Mids where every bugger is poor and house prices along with salaries ain't nothing to shout about. You'd have to do the work yourself as you'd not have money for tradesmen and the property would be BASIC, lol. It'd be a dirt cheap rental which should see a small monthly return which would be left untouched to grow as a 'what if' fund. What if you can't find tennants..... the rental market is strong, especially in the poor areas you'd be buying. But that's the risk with any investment. Worse case, you sell after doing a lot of hard work and hopefully see a profit, think "f**k that" and blow it. It's doable on 20k, it's obviously a lot more doable with more capital to invest, reducing risk or increasing profit. Personally I wouldn't want the aggro unless I had a fair bit to invest, which is why I said I'd put it into my own primary mortgage and not a second one, plenty of others seem to enjoy it though. Sorry if I came across as a dick, I speak my mind without intending any malice. Edited March 17, 2014 by Born Hunter 1 Quote Link to post Share on other sites
nothernlite 18,028 Posted March 17, 2014 Report Share Posted March 17, 2014 Look at it from two angles short term or long term; Short term - Charlie Long term - rent a farm and grow weed :laugh: Spot on Quote Link to post Share on other sites
keepdiggin 9,223 Posted March 17, 2014 Report Share Posted March 17, 2014 Taking on board what you have said BH I still don't think it would be worth risking the £20k in the property market. Each to there own. 1 Quote Link to post Share on other sites
gnasher16 29,664 Posted March 17, 2014 Report Share Posted March 17, 2014 Rather than chancing your arm trying to play at Mr Entrepreneur when you havent a clue what your doing.......why not just see an investment consultant thats what they are there for.......poor advice wont cost you anything,good advice will cost you...........if your not even willing to invest in good advice how can you expect to make money 1 Quote Link to post Share on other sites
desertbred 5,490 Posted March 17, 2014 Report Share Posted March 17, 2014 Find a fire damaged property that is structurally sound i.e foundations and walls you can pick them up for less than 50% of market value. Get the roofing, wiring ,plumbing joinery plastering and tiling done as economically as possible you should have at least 30 % equity in the house if the work is done to a good standard.bit of work involved but if you know property and construction its piss easy. 2 Quote Link to post Share on other sites
lapin2008 1,587 Posted March 17, 2014 Report Share Posted March 17, 2014 Taking on board what you have said BH I still don't think it would be worth risking the £20k in the property market. Each to there own. Find a fire damaged property that is structurally sound i.e foundations and walls you can pick them up for less than 50% of market value. Get the roofing, wiring ,plumbing joinery plastering and tiling done as economically as possible you should have at least 30 % equity in the house if the work is done to a good standard.bit of work involved but if you know property and construction its piss easy. Or a repo. Born hunter you are a very clever lad I have no interest in getting in to a debate with you as I would more then likely lose With the £20k you use to invest in a property how much would you be using for the deposit? how much would you use for the refurbishment? Whats plan b if you cant find a tenant? 20k is the deposit, you factor what you think its gonna cost to do it up into what you borrow. But if its just for rental and you get the right house you can be in there the day after completion with a big tub of magnolia and have the estate agents round taking pictures 2 days later. The risk is if it doesnt rent or sell for a prologued period of time its going to cost you each month and that can add up! Quote Link to post Share on other sites
mushroom 12,393 Posted March 17, 2014 Report Share Posted March 17, 2014 Rather than chancing your arm trying to play at Mr Entrepreneur when you havent a clue what your doing.......why not just see an investment consultant thats what they are there for.......poor advice wont cost you anything,good advice will cost you...........if your not even willing to invest in good advice how can you expect to make money Long term with just 20k not worth it mate they would end up with fec all return. Now 20k plus more each month bob on but a minimum of 500 a month would be needed to get a return a decent return. Short term 20k is going to be invested in very fast paced dodgy shiit you may make or you may lose everything but to get any sort of meaningful growth everything will have to reinvested constantly Find a fire damaged property that is structurally sound i.e foundations and walls you can pick them up for less than 50% of market value. Get the roofing, wiring ,plumbing joinery plastering and tiling done as economically as possible you should have at least 30 % equity in the house if the work is done to a good standard.bit of work involved but if you know property and construction its piss easy. Someone I know does this and has made a very decent living Quote Link to post Share on other sites
gnasher16 29,664 Posted March 17, 2014 Report Share Posted March 17, 2014 Rather than chancing your arm trying to play at Mr Entrepreneur when you havent a clue what your doing.......why not just see an investment consultant thats what they are there for.......poor advice wont cost you anything,good advice will cost you...........if your not even willing to invest in good advice how can you expect to make money Long term with just 20k not worth it mate they would end up with fec all return. Now 20k plus more each month bob on but a minimum of 500 a month would be needed to get a return a decent return. Short term 20k is going to be invested in very fast paced dodgy shiit you may make or you may lose everything but to get any sort of meaningful growth everything will have to reinvested constantly A good investment consultant will invest 2k or 2 mill its their knowledge you are paying for................trust me i didnt marry one for nothing With honesty and realistic expectations you would have to be very unlucky not to make money through people who make money out of making money 1 Quote Link to post Share on other sites
Born Hunter 17,639 Posted March 17, 2014 Report Share Posted March 17, 2014 Taking on board what you have said BH I still don't think it would be worth risking the £20k in the property market. Each to there own. Maybe, maybe not. Here's a real world example I have remembered; There was a property on the market around the corner from me a little while back, a 2 bed modern semi detetched for £85k. Others on that Close were around 90-100 but they were absolutely immaculate and to a high standard. The property was in good nick and needed nothing doing to it. The couple were pretty desperate to sell, maybe get the property for 80k..... monthly mortgage repayments at £160-£200 and rent it out at £350-£400 a month. The monthly profit is saved for maintanence untill say 5k is saved and at that point excess gets put back into the mortgage or for yourself as pure profit. 25-30 years time the property value will be...???? Double? More? Sell for say £160k, the lender takes their £60k back, you keep £100k, taking into acount inflation which will roughly have halved the value of the pound and you have £50k to spend in you retirement. I'm sure that plan is filled with holes, lol. But that's the basic logic a lot of people are working to. Quote Link to post Share on other sites
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