Jump to content

Advice for a future investor


Recommended Posts

Hi guys I'm a 29 year old looking at getting into property I've recently been promoted at work and now have some extra income. I want to start purchasing property to invest for income.

i have no capital at the moment but I'm working towards that as we speak I'm curious what advice could people offer in terms of how much i need to get started? should i by close to where i live (staffordshire) of venture further out?

Should i self manage I've read books and listen to podcasts but theres not really a clear route into property investment.

Any advice is welcomed 

 

Thank you 

 

Link to post

Hi Kieran,

Welcome and congratulations on your promotion and taking your first steps into the property world. In terms of how much you need, this is all dependent on what you what to spend and how much you can put aside etc to start out. 

With location staying local has many advantages and means you know the area well especially for your first investment but again this is completely up to you and if you what to venture out a little.

Many people self-manage their properties I don’t see why you can’t, you may need a little help as its your first investment but sounds like you have done a lot of ground work already so I feel like you can definitely do it.
 

Link to post
  • 2 weeks later...

The first thing you need to do is build a deposit. I would recommend saving a regular amount into whatever product you feel suits you best. Personally I would invest into a stocks & shares ISA as that is the only way to really grow your savings but I know many people are uncomfortable with the risks. 

Then make sure you have a good credit rating - you will need this to get a mortgage. Make sure you never miss a payment on any bills & take out a credit card (you don't have to use it!)

I would advise buying local - you can do some maintenance yourself (everyone can paint room) and its much easier to deal with any problems.

I would use a letting agent at first - you can always go solo later, buts its good to have your hand held when you're new. Ask what kind of properties let the best & buy what the market wants not want you like.

Buy the best property in the best area you can afford & keep it in the best condition - then you stand to get the best rent & hopefully decent tenants.

Be hands on.

You will learn an awful lot from your first property - so be prepared to learn. Don't expect to make a fortune & make sure you register with HMRC so you pay the correct tax.

Good luck!

Link to post

I'm one of the few people out there who believes you need a LOT of money before you even think about getting into property, and I mean 500k+. Less than that, and you can't build enough of an income for the whole thing to be worthwhole, in my opinion, and you're better off focusing on some other cash-generative business. Many things can and do go wrong with property purchases, and you need huge cash buffers to absorb them. Either that, or buy in a market (perhaps an overseas market) where you can acquire properties for relatively little money, preferably when the market there is rising. I wouldn't start getting loans and all that nonsense until you're in a much stronger position financially. I've seen so many people get into property without enough money and then get stuck. You'll hear lots of talk about "doing it with no money down", "doing it with other people's money", people getting fabulously rich with just a 20k deposit. Maybe it's possible, maybe those people exist, but I've personally never met them, apart from on youtube, and those are self-styled "gurus" who are usually earning substantial speaking fees for convincing you of such things.

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...