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Confused about my investment strategy.

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Hi all,

This is my first post on here so please bear with me. I would consider myself a newbie in property investment but have been listening to the podcast for the past 6months or so and now I finally want to take action to invest in property but I just feel lost with the vast amount of information available. 


My situation is that I am 24ys old, I work in London and live with my parent with about £45k saved up. I am lucky in the sense that I can save large sum of my monthly income towards investment. My question is, what strategy would you follow if you were in my situation? I have looked into buying a residential property.

Buy residential property (either an apartment or house). I am not sure at the moment but I am leaning towards a 2 or 3 bed house. My plan here would be to buy somewhere in London mainly an area with good transport link to central London. Then rent out the other room(s) to get some income which can pay towards my mortgage. I believe I would be able to afford a property up to £400,000 (since I have the 10% deposit - ~45k).


This sounds like a plan but I have some concerns. I don't think I would be able to borrow enough money. For example, lets take an average property in London £400k, with 45k saved up, even with 10% deposit the money that I will be able to borrow from a lender will not cover the £400k as how much you can borrow is hheleavily depended on your income (from what I understand by researching). - My income is only £40k annually so most likely the lender will lend me around £190k (40,000*4.75).

So, 190k+45k = £235k (just under half of the house price!!!)

How the hell am I suppose to save up for a house like this? Do I just need to make sure I have a higher paying job. For example, if I had a job that paid me £50k instead, I would be able to borrow up to £237k (50,000*4.75) which is significantly higher.


Any advice/help is appreciated, thanks!

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