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How to start with a small budget and new to property investment

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Hi there,

I am grateful for property investment education provided by Property Hub and members in this forum. This is my first post and please forgive my ignorance on property matters. I am new and I have been reading non stop for the last couple of days. I am writing this post to clarify my ideas and would be grateful if someone could reason with me. I live in Hampshire with £30.000 in savings, a joint income of just over £70,000 per annum and rent a housing association property. My plan is to invest into a BLT property with the aim to achieve annual profit to replace joint income and become a property investor. I also have the option to buy the property I am currently living in under the Right To Acquire scheme (RTA) which comes with lots of restrictions for the first five years and it is not a new property which means that I will not be able to get a mortgage under the Help to Buy scheme (correct me if I am wrong). I have number of questions and I would appreciate if someone could help clarify my thoughts and plan.

1. Would it be more profitable to invest in a BLT property and then buy my current home later?

2. What are my options for a mortgage for a BLT property?

3. Most of the posts have read talk about investment in the North West, how is Hampshire doing and which part of Hampshire has the potential for growth?

4. How to manage a property from a long distance if I was to invest in a BLT in the North West (Manchester, Stockport, Bolton etc..)

Sorry, lots of questions. Thank you for your replies


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1. Given you will get a discount on your HA house this will probably make you more money than a BTL where all income will be taxed.

2. The best rates will be on 65% - 75% LTV. Speak to a broker to find out what's available and I recommend a 5yr deal as 2 or 3 year deals will leave you having to remortgage very quickly and there is always a booking fee! When comparing mortgages I always do it over 5 yea with total costs. It is surprising how much difference the booking fee can make!

3. I always prefer to invest locally so I can be hands on. If you don't mind paying £50 for a plumber to change a washer because you can get there then look further afield. I also like to get into the property between tenants as agents don't look at it as I do and then I can decide when to repaint, recarpetetc. It also means  I then know exactly what the state of the property is when a tenant moves in which makes it easier to know what damage may have been done when they move out. Hampshire will clearly be more expensive than the NW. Go to a rental agent and ask questions about the market and what is in demand and see if that works on your budget.

4. If you buy a property away from home you will need a good agent who will manage everything for you. Personally I don't recommend that but others do it with no problems. It's difficult to know where to buy in an unfamiliar area and tricky to deal with problems. You will learn a lot with your first property so I would start local.

Look at the figures carefully before you dive in - there are a lot of expenses associated with BTL and you will not make a lot of money initially - it is a long game.

Good Luck :)



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