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Starting out help and advice...

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Evening everyone,


I'm Adam, I have always been floating around in the back ground reading forums, listening to podcasts but never wrote into the forum myself. (first time for everything I suppose).

I see a lot of helpful people and answers all over the forums, I'm hoping now I have the courage to write a comment myself that this will give me the kick I need to just go for it.


Right so hear goes. I have a annual salary of around £30k and I currently have one property which I am deciding to rent out after a light referb, due to moving in with my girlfriend in her property.

My property is currently on a residential mortgage as I used to live there but I am hoping to change it to a BTL mortgage in June 2019 when the fixed rate is up.


My property is currently valued at £105,000 and I have £60,000 left on the mortgage come June, I am wondering what the best route forward would be come June….. do I go into flipping... do I try take equity out to use as a deposit on another BTL... I am split after reading all the info on the forums, I would be thankful for any info and advice.


Thanks Adam S.

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Hi Adam,


Well done for mustering up the courage to ask the question! Great post!


Sounds like you have two really good plans of action and have a good understanding in property.


I think the question you need to ask yourself is what do you want? would you like a second property or would you like to just have your current one?


Advice can be given 100% and I'd be more than happy to help but think about what you would like, both can be done but its down personal preference. 


hope that helps you if you have any further question please don' hesitate to ask.

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All depends what you're trying to achieve. Do you want future growth or cashflow now (or a bit of both)? Cash now or a long term pension plan? What's your plan for dealing with section 24 - don't know your job status in terms of payrises/promotions but with a couple of BTLs, you could easily find yourself in the 40% tax bracket. Same for flips.

It may therefore make more sense to do it in a limited company, however, if the plan is to create cashflow for use now, then possibly not, as you'll end up paying tax twice, so may make little difference. If the plan is to build up future income or top up a pension, then maybe.

Appreciate that's more questions than answers, but as the two Robs will always say, work out your goals. In this case, it's perhaps more your overall aim rather than specific, shorter term goals, but once that's clear, you can then test ideas against it. 

In terms of your June options, you might find you're not going to get a lot out of your current property. A BTL mortgage is generally at 75%. Depends what your property is valued at come June and how much mortgage is left, but you might find you're only getting £20-25k. It's certainly possible to find properties with that as a deposit (don't forget the 3% stamp duty and legals), depending on what area you're looking in.

In the main though, go for it. 

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  • 4 weeks later...

Sorry for not getting back to you both sooner its been a very busy festive period.


On ‎12‎/‎14‎/‎2018 at 9:53 PM, dino v said:

Do you want future growth or cashflow now (or a bit of both)?


I personally would like to grow a portfolio large enough to replace my current income and go into property full time further down the line, however due to such small starting funds available I thought that using what little equity I gave to do 2-3 flips (or how ever many it takes) to raise funds for another BTL property might be more sensible and achievable.


On ‎12‎/‎14‎/‎2018 at 9:53 PM, dino v said:

What's your plan for dealing with section 24


This is a area I am not too clued up on and need to do more research.


On ‎12‎/‎14‎/‎2018 at 9:53 PM, dino v said:

don't know your job status in terms of payrises/promotions but with a couple of BTLs, you could easily find yourself in the 40% tax bracket. Same for flips.


Unfortunately there isn't any pay rises coming my way anytime soon :lol: but I think it would be for the best to expect it to go into the 40% bracket as I should be around 34k-36k by the end of the tax year, without any rental incomes or flips.


On ‎12‎/‎14‎/‎2018 at 9:53 PM, dino v said:

you might find you're only getting £20-25k. It's certainly possible to find properties with that as a deposit (don't forget the 3% stamp duty and legals), depending on what area you're looking in.


I live on the west coast of that lake district and most houses in my area are cheap enough for me if I can pull £20-25k. the only thing I would ask is should I in theory put 15% aside to cover (deposit, stamp duty and legals.) and put the rest into my pot for refurbishments or every thing into a bigger deposit including stamp duty and legals?




-Would I be right in thinking the best way to go around things would be to do flips in a limited company but then keep all BTL's in my own personal name?


-what tips and advice could you give me for getting the ball rolling now in between renovating to help me come June when I can get the BTL mortgage?


Once again thanks for all the help it is bringing me on in leaps and bounds with confidence and knowledge.




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Ok, so as a starting point have you read Rob D's book (complete guide to property investment)? If no, that's your homework.

Also, how many of the podcasts have you listened to? If none, you've got a lot of catching up to do, but you can skip some. But then there are other podcasts worth listening to as well - I'd recommend the Property Voice by Richard Brown who posts on here. I also listen to the Progressive Property one, which can be a bit positive for me, but I find it useful to listen to opinions I don't agree with. There's a few other property ones as well and I always recommend the Meaningful Money podcast, which isn't about money (apart from when the Robs are on, but is an excellent personal finance one). Perfect for while doing a renovation - learn whilst you work.

Then there's YouTube. Lot of dodgy advice on there, but good for inspiration and there are some useful people.

If you're planning on buying several BTLs and not taking the money from rent whilst you still have a job (other than to use to buy more BTL), you're probably best off doing everything in a Ltd Co, but discuss your business plan with an accountant to work out the best way for you. The reason I think everything in a company though is that if you do flips personally, the profit is straight on top of your income, so big tax bill. In a Ltd Co, you'll be looking at lower corporation tax and you can probably find a lot more losses to offset any profit. But if you then take that profit out to invest, you'll need to pay income tax. Leave it in the company and you'll only pay personal tax when you finally take any money out which you can then manage at a later date ie when you have no other income. You can also move company profits into a personal pension in the meantime.

With where you're based, you stand a chance of finding cheaper properties, although it means flip profits may also be less, but do enough and you'll build up a decent pot. As an alternative though, maybe look at the buy, refurbish, refinance method. You won't be able to pull all your money out, but you'll be able to get a few more BTLs before you run out and then you'll have those rents coming in to build up your next deposit.

One final possibility, depending on exactly where you're based, but could holiday lets work? Would require more money up front, but we've stayed around the lakes a lot of times and it's not cheap.

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Right... home work time!


Brilliant info Dino this should keep me ticking over until I can get the ball moving fully. I have just recently just caught up on the podcast and was looking for some more to keep me going as I have some distance to travel with work etc. So that’s great. I purchased the rich dad poor dad last week and will be sure to purchase rob D’s very shortly.

Once I have more info in the future of where I stand I will drop a message back and let you know how I am getting on.

Much appreciated for you to take the time out and write back and help.




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