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What to do whilst saving up


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I'm new to looking at property as a future way of investing but I've recently read a lot of books, been listening to the podcast, taken a course for goal setting and now I'm excited to get going on it all. I'm now fairly confident of where I want to be by what age and how I might get there in the long run but I need to get the initial save of money to be able to invest in my first property which at the moment may take 12-18 months. 

My question is for anyone that has any advice on what I can do in the mean-time whilst I do save up as well as carrying on learning where I can through more books, forums and podcasts? Is there anything I can or should pro-actively be doing whilst I save up the money to start off with my initial investment?

Thanks in advance for any help.

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Hi 

It is quite painful sometimes going through the process of saving up deposits in order to get started. It will be worth it in the end though. It also gets quicker as you start to build a portfolio as you can also put rental income and period remortgage cash into deals, speeding things up.

In the meantime you should keep reading and researching. Also is there a way you can earn more money so it takes less time to save up the deposit?

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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I assume your still living at home ? Get a second job is the fastest way to boost income.  
At the age of 27 I was lucky enough that my dad borrowed £20k on my behalf for a deposit on a £58k house as I was only earning £14k a year.  This is all back in the year 2000....  now I was used to a certain standard of living at that age, I was lucky with the privilege of living at home being fed etc for very little contribution a month. But the minute I bought this first house it occurred to me that I immediately needed a lodger, all cool as it was a 2 bed.. no drama... but to keep up what I was used to ie : running a decent car, going out partying each weekend, clothes etc etc I realised I was going to have to either cut back drastically or do something to keep me where I was... therefore I had a full time office admin job 9-5pm, but I took an evening job 6pm - 10pm.  Wow what a difference that made... I kept on working every hour god sent me for several years.  I even took a weekend job as well at one point, it stopped me spending money with my time filled up with work, work, work! Lol!   A second job might seem boring and all work no play but it pays off massively if you have the energy and drive like I did.  I’m 48 years old now with 3 properties let out totally around £2500 a month income and my own £500k residential almost paid off, less than £40k to overpay.  I’ve never been in any high paying job, but my early hard graft sorted my early struggle as i ploughed spare time into turning it into money ...oh btw that £58k house is now worth £175k

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15 hours ago, LLotus said:

I assume your still living at home ? Get a second job is the fastest way to boost income.  
At the age of 27 I was lucky enough that my dad borrowed £20k on my behalf for a deposit on a £58k house as I was only earning £14k a year.  This is all back in the year 2000....  now I was used to a certain standard of living at that age, I was lucky with the privilege of living at home being fed etc for very little contribution a month. But the minute I bought this first house it occurred to me that I immediately needed a lodger, all cool as it was a 2 bed.. no drama... but to keep up what I was used to ie : running a decent car, going out partying each weekend, clothes etc etc I realised I was going to have to either cut back drastically or do something to keep me where I was... therefore I had a full time office admin job 9-5pm, but I took an evening job 6pm - 10pm.  Wow what a difference that made... I kept on working every hour god sent me for several years.  I even took a weekend job as well at one point, it stopped me spending money with my time filled up with work, work, work! Lol!   A second job might seem boring and all work no play but it pays off massively if you have the energy and drive like I did.  I’m 48 years old now with 3 properties let out totally around £2500 a month income and my own £500k residential almost paid off, less than £40k to overpay.  I’ve never been in any high paying job, but my early hard graft sorted my early struggle as i ploughed spare time into turning it into money ...oh btw that £58k house is now worth £175k

Good message that. It isnt about the income, it's about the income versus the expenditure. 

You dont need to be a massive earner, you do need to be a massive saver. I also echo about living at home for a while if thats an option as it will massively help. Have a figure in your head you want to save each month and ensure you do that without exception or excuses. Too many people are keen to say why they cant do this or cant do that, but to get what you want you have to power through and make sacrifices.

For perspective my first job paid around 1,000 after tax pcm, around ten years ago and I'd still save 400 a month, as my earnings went up, I made sure I allocated a few extra luxuries to myself but ensured I increased my savings pcm by a higher amount than previous.

 

Whatever you do dont get suckered by people selling you a dream for an expensive price, there is nothing you cant learn from books and online for free.

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Echo the above in terms of saving funds and educating yourself. Plenty of free property forums, Facebook groups, books, YouTube videos and podcasts you can immerse yourself in (some better than others).

You can also start working on your goals, identifying your strategy to achieve those goals, then tracking the type of properties/area that complement the strategy - e.g. single lets in X area, start tracking these on RightMove - what do they advertise for, what they sell for, who the most popular agents are, what they rent for, and also monitor the area - are there any developments / regen programmes of the town, who the main employers are, transport links etc.

After about 6 months, you'll have savings plus good, local knowledge so when you call up the agents you know what you want.

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
Looking to read some Property books? https://abcdad.co.uk/books/property-books
Follow on Instagram: @abc.dad

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