For starters, I'm relatively new to property investment. Born and live in East London, I have one purchase, an overseas property I grabbed in 2016 BMV, which is netting me a pretty decent yield (10% gross, about 6% net) - though it did have some roof issues which I found out a year later after torrential rain! However, I left it there, 50% of the time tenanted, and decided to focus on the stock market, averaging 7% yield annually. However, the current climate is so unpredictable, it doesn't suit my style of play as I just don't have the time to analyse the markets as much as I would need to - plus most companies are overvalued.
After a couple of years saving up as an Finance IT consultant, I've managed to save up a fund of £60k (less than half of savings) which I would like to invest. I'm pretty frugal with my outgoings, however, with the possibility of the UK contracting market getting shaken up next year (love HMRC), I'd like to have a safety net. My goal is to use the savings to build a UK property portfolio which generates a healthy cashflow of 5k/month. I'm open to spending all of my evenings and weekends to achieving this.
I've been listening to the Property Hub podcast for a month now, and I currently have a mortgage in principle of £420k (with the 50k as a deposit) at 1.99% through a broker (he seems decent and knowledgeable). I'd be classed as a first time UK buyer, so I have two current options I'm looking into:
Option 1) I am currently renting a room in East London, however the quality of rooms is terrible here, so I'd like to get on the ladder, find a 3bed Victorian terrace or 2bed flat, refurb it, then manage it as a live in landlord - It just needs to cover the mortgage and maybe provide some profit, so I'm not forking out on someone else's mortgage. The first time buyer stamp duty relief would help, especially here. The refurb would include adding a 4th room and should hopefully increase the value (within 6months), allowing me to remortgage and use the equity to start a LTD SPV up north, preferably Liverpool or Manchester.
Option 2) Continue renting a room in London, start a LTD SPV and with my savings focus on building a portfolio up north asap, to take advantage of the >5% net yields and the capital growth that's mentioned everywhere.
For London, I'd be looking between the Stratford and Manor Park area, along the Elizabethan line.
For Liverpool, I'd be looking at L1 for a single or double flat, or L7 for a 2bed flat, or 3bed Terrace to refurb - based on some of the threads in this forum.
I'd love to get your thoughts and opinions on either my strategy, the 2 options I mentioned, or anything you think would be helpful (linked articles are welcome). I have a spreadsheet i've put together to calculate opportunities, and could use some advice on finding deals, Brokers, Agents and solicitors. I'm also going to the December 5th London East Property Hub meetup, I'd love to meet some people and chat!