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When do I actually start making money?
helenaaaa posted a topic in Newbie Advice & SupportI'm preparing to buy my first property next year, and am getting my strategy together, and want to keep really good records from the start. I'm confused about when I will start making money. Let's say I need 30k to cover the deposit, legal etc costs, renovations, insurance, all of the costs, and then after paying the mortgage I make £100 per month. In my mind I don't make a profit for 300 (plus extra yearly expenses) months, because my initial outlay was so much, but I technically would have an income of £100 more than my wage. Is it a yearly thing, like i'd make a loss in the first year and then £1200 profit in year 2, 3....., etc? I'm thinking about it partly for tax, as that would become another expense that ate into my £100 per month, but also from a strategy perspective, for when I'd break even. I'm confused about when I call the £100 per month profit.
Mortgage advice/ recommended brokers
chris-parker_1 posted a topic in Mortgage AdviceHi everyone i'm turning 18 in a few months and looking to get on to the property ladder (based in Nottingham, so looking to invest here). I'll be looking to get a residential mortgage and rent out one of the rooms on spareroom to help pay the mortgage, and hopefully will be able to benefit from capital gains that i will be able to pull out in a few years once i'm 21, which i can use towards a BTL mortgage. Would appreciate anyones thoughts on this and if its even possible (I will be earning £18k a year when im 18), as well as any recommendations for a mortgage broker that could help me out here. Many thanks
Hi All, Sorry for the long post. I'm totally new to this and was hoping to gain advice from you all, so any wisdom imparted would be sincerely appreciated. I'm interested in beginning my property investment journey after gaining much confidence from the contents on this wonderful site. I'm from Birmingham but live and work in London. Initially, I was looking for a high yielding B2L property in somewhere like Sheffield or Nottingham, to potentially net between £500 - £1,000 per month cashflow to generate some passive income. As a newbie, I want a hands off approach, interested in modern properties that are immediately ready to rent out; but have recently learned my cousin works on upgrading properties so thats a bonus for some flexibility in regards to potential house flipping. My strategy has now potentially changed as my Mom (currently living in a 3 bed council house in Bham) needs to be rehoused, due to her current area and neighbours being far from the best to say the very least! So in saying this, I now intend to purchase a mortgage for a place for her to stay in Bham (2-3 bed house or 2 bed apartment in city centre) that will see good capital growth in the long run as the plan is for her to live there for the next 10, 20, 30 years plus. So this would be a long term investment. I have around 30K to invest at the moment, and ideally would like for the monthly repayments to be low because she'll be living there alone (would H2B be pertinent here?). I don't intent to make profit off Mom or for her to have to share, but at the same time, I don't want to have to go into my own pocket to top up what she cannot afford as I am already renting in London. I did a mortgage in principle with my bank the other day and they said I could borrow in the region of 280K. My credit is pants at the moment so I'm using the next 9-12 months to increase my chances of getting a 5% mortgage next year although I would really want to buy something in 2019. So I suppose my questions are: Is what I'm pondering ambitious or outside the realm of success with the 30K capital and poor credit rating I have? Outside of transport links, being close to city centre, good schools, shops/supermarkets/parks/having a drive and garden etc, what other key criteria do successful property investors look for, that bring confidence that capital growth is very likely to come down the line? After looking at Rightmove and speaking to local estate agents and viewing properties that fit your criteria for example - what are the differentiators or main drivers that prompt an investor to push the green button and buy? Should I maintain my original plan, and find a 1-2 bed B2L property in a high yielding/high growth area like, Leeds, Liverpool, Nottingham, Manchester, Sheffield and essentially keep saving while banking the £500 - £1,000 per month cashflow - because in a couple of years I'd soon generate another 30K to get her the property in Brum - and in that time I would have gained some equity/growth in the B2L property. I do plan to build a property portfolio so when you have a strategy for acquiring multiple properties; for tax reasons, is it better to purchase them under a limited company rather than as an individual? When people say, test your numbers thoroughly, what exactly does this mean? How can you test that your strategy for a B2L monthly cashflow goal is truly feasible? Would the H2B scheme benefit me in for my circumstances? Many thanks
Where do we start!
Jacqueline Dobson posted a topic in Introduce yourselfHi everyone, This is my 1st time on a forum, ever! My husband and I are wanting to get into the BTL game. A rough history - we have one BTL mortgaged property (my first flat I purchased as a youngster) are self employed and rent a property ourselves. We have a very small pot of money but the will and drive to do this! Where do we start? I look forward to your comments. Jacqui