Age 21 - First house/BTL - help?

[ewan_statters]

Hi All,

I could do with some advice on how to get started on my property investment journey. I am 21 years old, still living at home in North Manchester with my parents and trying to figure out the best way to purchase my first house and a BTL property. I don't have a huge budget to work with so I am trying the make the money I have go further. I don't want to use the money I do have to just buy my first house and then all my wage's go towards paying the mortgage off and not be able to save a penny for my first BTL.

The idea I currently have is to purchase a 2/3 bed semi detached house in North Manchester(my local area) which needs a little TLC. The plan would be to renovate the house, move in and rent out the other rooms while I live there. Completing the renovation should increase the property value and allow me to pull some of my initial deposit back out, to then be used towards the deposit of my first BTL. The rental income from the other rooms would also allow me to save the money I would normally spend on the mortgage, this would also go to saving for my BTL property

I know this plan isn't perfect and has a lot of variables, this is why I'm asking the Property Hub community for their advice?

Any advice would be appreciated.

Thanks Ewan

[Jaimie Kerr]

Hey Ewan, the plan you have outlined of doing a refurb then subletting your two spare rooms seems like the best bang for your buck to me. 
I imagine you will have actually have some money left over after you pay your mortgage. 
 

Like you say you then can remortgage to hopefully pull out most of your initial capital, rinse and repeat! 
 

best of luck with it!

[Julia Urquhart]

Hi Ewan,

I think renting out rooms whilst you refurbish a property make be tricky. I would suggest stay living at home and save like mad for a bit longer. Then buy a residential property that needs some TLC and once refurbished, let out the spare rooms. This should allow you to continue to save hard for a deposit for your first BTL.

Be aware that most BTL mortgage providers will require you to have an income of £20k before lending so that is something you need to consider.

I know this sounds like putting off your plan, but you need to take one step at a time and property is investment for the long term.

Good luck