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The good thing is that mostly you will be making money from poor people thereby helping to keep them poor. The more poor people there are, the more opportunities there are!
I was working an ordinary job when I started doing this, and was living in rented accommodation.
I continued renting a room in a flat and rented out my first house to a couple.
I wasn't wealthy and we are still relatively small fry.
We mostly rent to young professionals who are saving for their own property.
Many times they live in a property for 2-3 years whilst they are saving and then move out into their own properties.
Not everyone who does this is a slum landlord.
But your previous posts on this topic show that you have an ideological problem with BTL so I don't imagine you're interested in seeing the other side of the argument.
Studio: https://www.voltperoctave.com
Music: https://www.euclideancircuits.com
Me: https://www.jamesrichmond.com
Football is rubbish.
(Using the best rate I can find for a BTL at 75% LTV (2.39% fixed for 2 years), you'd be looking at £134/mo for a £40K property rising to £201/mo for a £60K one)
(Edit: This bit directed at OP, not ToneControl) More generally (and as others have said), the days of leveraging expected house price growth to build a portfolio are over, for the moment at least. This means (massively simplified) your rent needs to more than cover your interest, your maintenance, fees, tax liability, opportunity costs (even with current interest rates low, that £15K deposit could be earning 3% securely in a current account) and void periods, otherwise you're effectively losing money. This simply isn't possible for a new purchase in some parts of the country at the moment.
With all that said, ToneControl's figures (even with the repayments adjusted upwards a bit as above) still show it can be done.
dumb comment removed.
Best dig a big hole in the ground I say or live in a caravan. I know each to their own, but of you are single on a single income and self employed you are kind of royally fucked in the arse.
Okay here is a serious comment:
Provided you can prove you can generate sufficient rental income, and you have JUST enough collateral up front, there are certain lenders that will give you a buy-to-let mortgage. You will need about a 25% deposit. So if you remortgage your current property to free up some collateral, start processing the mortgage and can either prove you have a tenant lined up willing to pay the rent OR the valuations guy they send round thinks the rental income is enough to cover the mortgage +n% (with n varying with broker and deposit amount) you can get on the buy to let ladder. After doing it once it gets easier. Source: my sister, who is a financial adviser, who has given me similar advice to deal with my shitty housing situation addressed elsewhere.
Alternatively, try and get a relative on the mortgage to increase the amount they'll lend you. Some lenders will mortgage against pension income up to the age of 95 at the end of the mortgage (which sounds insane). Buy a studio in a university town - these yield a good return on investment.
@Sambostar
Just spent 10 days in a luxury caravan Bro Sambers, in Dunoon...& very nice it was too......I liked the soothin' sound of the rain upon the roof at night but Hooters did not care for it
one of the "vans" was termed a "lodge" the only difference I could see in it was that it cost 75k....very nice it was too
it takes me all of 5 minutes tae get used tae the smaller space.......really great it was, tae get away from the net/music/vids/soaps/forums for a while and collect wans thoughts
the grounds for the vans are spilt into little areas like.....Islay and so forth. some even have monobloc surrounds ...very nice they were too
anyways I'll have tae rush now 'cause a horrid picture is ememgin,' on this hot & stuffy day, of you sittin' in yer speedos under that bakin' caravan roof.......
This is in the currently most prosperous but low housing price area, these things both vary over time
At present, this is Liverpool
For anyone who is wondering, I spend up to £9k renovating them to a standard beyond any house I ever rented or bought, so I don't have to worry about feeling like a guilty slum landlord
My calculations are that - say for £50-60k , you can have one house owned outright. or 3 on 75% LTV.
given fees that gives you twice the income, three times the risk, and three times the benefit if capital gains ever happen in Liverpool. What's great is that my plan does not rely on capital gains. In the south east, capital gains are the only viable plan, and are now harder because of the new tax rules
https://www.amazon.co.uk/Plan-Insiders-Achieve-Financial-Properties/dp/0953911985/ref=sr_1_1?ie=UTF8&qid=1468956075&sr=8-1&keywords=1+3+pension+plan
you can't really do this now, but it's a very good book, explaining how to make one system work, based on capital growth
Instead, if you c an get rental to vastly exceed interest, you can still use leverage
btw. as an intermediate measure, there are firms which allow you to but shares in rental houses, and make a lower return
I will try to find a link, there was one in Manchester
on a similar return level, how about this:
http://www.telegraph.co.uk/finance/personalfinance/investing/10577240/A-buy-to-let-investment-with-6pc-returns-and-no-property-involved.html
I was a self-employed IT contractor when I started doing it.
Studio: https://www.voltperoctave.com
Music: https://www.euclideancircuits.com
Me: https://www.jamesrichmond.com
Football is rubbish.
Thanks to Y2K (remember that?) I came in with a decent deposit though, which is usually the biggest struggle for most people.
Studio: https://www.voltperoctave.com
Music: https://www.euclideancircuits.com
Me: https://www.jamesrichmond.com
Football is rubbish.