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Hi all, My brothers and I have been very fortunate to inherit a small cluster of properties from our late Grandfather. They are all owned out right and one is currently up for sale as we are looking to gain capital to invest and build our portfolio in other areas. My initial strategy idea is to use the capital from the house sale to purchase two B2L properties on a small repayment mortgage. Mainly to get ourselves set up and running on our own and invest our Grandfathers hard work into something we can then pass down later in our families lives. The second part is to potentially re-mortgage 2 of the remaining properties to open up capital to again invest to build the portfolio. My main concern is biting the bullet. Is it worthwhile to re-mortgage the properties owned outright to open capital? Or is it worth hanging fire and only building the capital via the rental income we gain from then each year (which has taken a huge hit due to refurbs and repairs so will cost us a few years in rebuilding capital). I expect hanging fire will mean we wait for 3 years to purchase another property. All 3 of us work full time but would really like to make a property business out of our inheritance and have always been really interested in property but never had the investment until now to really get ourselves going. Any advice would be amazing. Thank you all in advance,

Hello! I would be grateful for some sensible advice on my options. What would you do? Background: I'm new to investing and currently own my own home in London worth about £700,000 with no mortgage on it. It's a leasehold flat with about 112 years remaining. But my family has outgrown the space and we need a larger place further out of town for about £900,000. Option A ) Sell existing property and buy new place with mortgage on my salary, paying about £35k in stamp duty. OR Option B ) Take out mortgage on existing property on top of mortgage on my salary. Rent out existing property when we buy new property, paying about £62k in stamp duty as additional property. I could expect to rent out existing property for £2,700 PCM. Which one makes more sense in the long run financially? I would incur a far greater stamp duty with option B but then benefit from rental income. WHAT WOULD YOU DO? Thanks!!

Hi all Purchase of x5 properties which will have a Net income of between 80 000 - 100 000 after interest payments made. Sale price 2 million. 75% LTV. 1. No income on my personal name at the time of purchase 2. I have a SPV 3. Funds are in my personal account so can easily purchase on own name or SPV (create directors loan account) In order to benefit from significantly lower interest rates on this deal via a mortgage on my personal name would you put x2 properties on my personal name and keep just under the 50k Gross rent threshold and still benefit from the 20% tax credit and place the remaining x3 properties in the SPV. I have a trading business also and do not need to extract any dividends nor any additional money from SPV for the next 10 years at which point I may sell the properties on my personal name (18% CGT as things stand at present). or would you simply buy all x5 properties via SPV and accept higher lending rates as much easier to plan future exit this way or even legacy planning. Thanks in advance Jay

Hi All I am really struggling to decide if to go with Interest only or repayment mortgages for BTL investing. I am fortunate where I have a very well paying job and also passive income from investments therefore I do not need any income from my BTL portfolio in the short to medium term (early retirement planning). I also don’t need any funds from my BTL to purchase more properties as this will come from other income. Therefore surely it would be better for me to go with a repayment strategy where I have all the properties paid off unless you can convince me otherwise. Thank you

Hi everyone, I'm new to the hub and the world of property investment. I have lived on the Isle of Man for the last year, but will shortly be moving back to the UK (Manchester) in October to take up a new job and start my property investment journey! I'm trying to determine my strategy and would appreciate peoples thoughts. I've outlined my objectives, circumstances and available capital herein... Objective Create circa £5k monthly net income (before tax) from property within the next 5 years Circumstances and Available Capital/Equity I own a flat in South Manchester that is currently let to professional tenants; £250k value £85k mortgage, £400 p/m £1,050 p/m rental income I will need a place to live upon returning to the UK i.e. move back in to the property that's currently let out or buy something else to live in (I may rent initially) £20k in savings My job will NOT be 9-5 and will allow me to be quite hands on with the property side of things Total equity + savings circa £185k, but with the need to use some of these funds to purchase a residential property (assume £350k, 20% deposit = £70k) Estimated initial capital £115k Given I have the time and appetite I'm leaning towards a route of trying to develop a number of HMO's, but would welcome peoples comments and advice. Thanks!

I currently work in London as a Management Consultant, where I earn 60k a year. Over the last 4-5 months, I’ve developed an interest in Property from a desire to supplement my earnings with passive streams of income. By the end of the year, I will have £30k ish saved. I’m not interested in buying my own place, as I like/need the flexibility in renting - and so am going to start to build a Property portfolio with that money, probably start with a BRR in Liverpool, and continue to funnel money into other deals from my day job. However, I’m still very new to Property and am without any relevant practical experience. Even with my £30k, I’ve concluded that I’m going to need more cash flow to put into other deals and accelerate the process. £60k a year won’t get me where I want to be fast enough. So, I want to start a side Business in Property. I have been playing with the idea of the following three: Deal Sourcing - the strategy I’m most interested in, however, it seems like everyone and their Nan is a deal sourcer - which makes me question whether it is too saturated of a market. Has anyone had success Deal Sourcing within London? I’ve read that it tends to work better selling with deals further North to London investors. If so, would you not need to be close to the houses to source them? How hard is it to start from scratch as a Deal Sourcer? Especially now. If I learn my shit, will it matter to an investor that I don’t have my own portfolio? Or would you suggest I go for the JV route from the off? Rent-to-Rent Did anyone else start their Property Career with Rent-to-Rents? If so, I’d love to hear from you about your experience. Lease-Option-Agreements - these seem the most elusive of the three - but potentially the most lucrative. Did anyone else start off their Property Career with Lease-Option-Agreements? If so, I’d love to hear from you about your experience. At this point in my property journey, and with so little practical experience, I’m finding it hard to pick one. So any direction or insight would be much appreciated. What’s your favourite? If you started again, what would you do? Even if you don’t have answers to my questions, please feel free to message. It would be great to meet some to some like-minded people. Best regards, Josh

Morning all Just wanted to ask for some advice off anyone who is a few steps in front of me or is where I want to be. I am a 20 year old electrician and have been studying about property investment/ development for about a year or two simply just reading books, articles, forums you tube videos etc... My best pal and I (who is also and electrician) have decided to partner up on our property investment journey as we both have very similar if not the same goals relating to where we want to be and also feel that we would work very well with each other. We both live in Caterham surrey and between us both have managed to save up around £25,000 and also can get loans if needed. We have been viewing properties in areas such as Crawley/ East Grinstead about a 20 minute drive from our homes. Our strategy is for the first three properties we buy we will sell two and hold one for rent in the hope that we would have made enough capital to afford a BTL investment. Our goals aren't for short term cashflow it is for long term wealth as we both know you cant get rich quick. We have agreed that we will live off our current wages and any money made from the property business will be reinvested back into it in the hope that over a 10/15 year period we would have large property portfolio and leave our jobs as sparkies and become full time property developers as it has always been our dream. I know I have only touched on our goals/ game plan briefly in this paragraph but have one written up going into the depth about where we will be in the future if anyone is interested. Hope you all have a good day and look forward to reading any replies as I think we would both benefit massively from it. Kind regards Will.

Hello, we are buying our first home and have around 72k in the bank to do so. We are evaluating several options going back and forth and can't decide on the best strategy. Our goals are: 1) get on the property ladder now when prices are stable or declining, 2) build up equity to buy a more expensive house in 4-5years time. Our options are: a) Help to Buy, b) Second hand property with 10% deposit. We like option a because of how much money it saves us in interest (the mortgage rate comes down to around 1.68% - 1.84%) which means we can achieve higher equity. Our mortgage broker says we can remortgage and buy the gov out not to face any selling problems, or if price of the home declines it will make buying out the gov even cheaper. We don't like the stories we hear about new homes and snaggs that people need to deal with and worry about selling the property at a loss in 5 years time. Option b - we like the fact that second hand properties hold value better and maintainance problems can be anticipated to an extent. We don't like the high up front cost and high interest. The stamp duty discount for a property under 500k is great but there are not many nice houses at this price (our family is growing which we need to keep in mind). We like 550k homes but the up front cost would mean we need to part with all our savings. Affordability of mortgage payments is not an issue (I think we could purches a property that's around 680k). Any opinions on this, tips or personal experiences would be extremely helpful and much appreciated. I'll just add that we are in London and looking at areas like: Purley, Epsom, Borehamwood, Watford and Enfield.

Hello all! My wife and I are hoping for a bit of advice around starting our property investment journey, and we want to run a current plan past you all for opinions and advice.... We currently own a house in Hertfordshire, in a London commuter town. We want to use capital in this property to raise cash for a buy to let property. However, we’re currently locked into a fixed term repayment mortgage until December 2022, and as of 03/03/2020, the redemption fee is £9,196. The house has been valued at £450,000 and the outstanding mortgage amount is £306,586 (£315,782 to exit the agreement with redemption fees included). Our initial thinking was just to wait until the fixed term ends in 2 years 7 months, and remortgage without any fees. However, we’re now thinking about taking the £9k hit on the redemption fee, in order to start our property investment journey sooner. Rental income and capital growth should hopefully make this worth it over the 2+ year period we would otherwise be sitting around waiting on. Current thinking: · Re-mortgage our current home to an interest only mortgage with consent to let in place. Ideally at 80% LTV, so £90k down as equity. · 2nd BTL mortgage based on £140,000 purchase price using 75% LTV product (circa £44,000 left over from re-mortgage of home…..£35,000 down as deposit, around £9k left for stamp duty, other fees, etc). The reason for moving onto an interest only for our current house, with consent to let in place, is because within the next year or so, we want to leave our jobs to a relatively low paying job, but it provides accommodation with all bills included - so we would want to rent ours out. Thanks for your time reading.

I am about to start out in the property world, I would love to end up owning hmos or a lot of properties that allows me to replace my job, however I have a large chunk to invest from inheritence. I would love opinions or ideas on how they would start? I have over 100k to start, would people start by flipping to increase the pot, or go down the buy to let route. Just looking for peoples opinions really, and would you recommend a limited company to start with etc? Thanks, Tom!

My sister and I are in the process of purchasing our 1st property through our Ltd co, a 2 bed flat in Liverpool city centre close to the Liverpool Waters area. The deposit was paid on this, off plan, last year and it is due to complete in 6 weeks. We used a mortgage broker who was highly recommended on this site who submitted a mortgage application which was declined. We have been advised that any further applications are also likey to be declined and he has recommended that we withdraw from the purchase of this property. The main reasons cited were that it is an investor area wich would limit the re-saleability of the property and that there are a high number of developments in the area with many more planned. The developer is also offering a 7% net rent return scheme which the broker advised is further reducing the lenders available to us. Having done our research on what we thought was a good investment, we were shocked to hear this. Has this happened to any of you before? What are our options now? Is this scaremongering from an overly cautious (but experienced) mortgage broker or do we heed his advise? Many thanks if you have read to the end. We would really appreciate your views and advice.

Hi all, My name is Cosmin and I start the journey of investing by buying a small 2 bedrooms house in Leamington Spa (50 m2). It was the house I was renting so I thought it was a good idea to have it until I'm saving enough to move to a bigger house (the one where you raise your children and live for the rest of your life). At the moment the house can accept some big upgrades: heating / bathroom / an extension (around 10 m2 ground level only ) I have 10% equity at the moment. I know I need to have around 25% of it to be able to move the mortgage to BTL. What is the best way to increase the equity ? Option 1: do only the upgrades and hope the new price is enough to increase the equity around 25% - it won't jeopardize my saving plan for the bigger house. Option 2: do some of them (first 2) and pay extra for the mortgage (5-10% each year) - will put me back a couple of years for the bigger house. Thanks for your thoughts.

If I can get the same yield, regardless of size, I'm really interested to hear people's opinions on whether larger investments are better or worse than smaller. I'm attracted to smaller purchases as it's easier to find cash for the next deposit. I can grow my portfolio more steadily and making more purchases means I can learn more and make better decisions over time. I also hope that the investments will be in under-valued areas and get more capital growth. I know this is only a hope though! A larger investment means I have fewer potential problems in my portfolio in the long term because there will be fewer tenants, fewer boilers etc. What do people think? Thanks Daryl