I have £250K to invest and don't know where to start?

[jimbob1208 0]

I have £250K to invest and am thinking of buying properties to generate a rental income. My initial thoughts are to buy a couple of semi-detached houses in the midlands. However, I am totally new to all this and would welcome any information on where to begin?

• What are my options?
• What other strategies should I consider and research?
• How do I identify a good area to buy rental properties?

Cheers

[james batchelor 4]

Best place to start is education.  Have you done the training on PropertyHub?  I spent 6 months watching, listening and reading everything I could before I started, and still learning everyday 2 years on.

In regards to your questions:

• What are my options? - So many, ,main ones are single BTL, HMO, SA, Commercial
• What other strategies should I consider and research? - this depends on the time you want to invest, are you self managing or using a agent?
• How do I identify a good area to buy rental properties? - What are you after, rental yield or capital growth.

Once you have worked out your 'Why' it will be easier to answer your 'how'.  Drop me a message if you want any further advice on anything or a chat.

Thanks

James

 

[thomasoliver 8]

Hi @jimbob1208

 

How I first started in property was by becoming an angel investor to a property developer. I picked up bits and bobs from that person and whilst I was doing that I was educating myself for about a year. However, angel investing was great for me because I was earning money from property but had the time to complete the essential education. When my 12 month loan was repaid I then used that money and started investing myself. If you want to talk some more about it just drop me a text on 07554232227. Thanks

[the_dave 12]

Hey Jimbob,

It's about getting the maximum yield out of your investment when you want to build passive cash flow. It really depends on if you want to use leverage (mortgages) or you just want to buy the properties outright.

If you want to buy outright you could get 3 or 4 flats in the North and probably a yield figure around the 8-10% mark once agent fees, insurance and other yearly maintenance costs we're deducted. That's a profit of about £20k per annum on your money.

You could sink it all into one high end holiday let or serviced accommodation unit in a high occupancy area and achieve an 8-10% yield again making you around £20k per year.

Alternatively you could buy a decent HMO and likely increase your yield numbers a few percent but potentially face a few more ongoing issues with tenants and occupancy.

People talk a lot about good areas but as a general rule the further north you go the more chance you've got of a better yield because purchase prices are lower.

 

[amariino 7]

On 1/25/2021 at 6:26 PM, thomasoliver said:

Hi @jimbob1208

 

How I first started in property was by becoming an angel investor to a property developer. I picked up bits and bobs from that person and whilst I was doing that I was educating myself for about a year. However, angel investing was great for me because I was earning money from property but had the time to complete the essential education. When my 12 month loan was repaid I then used that money and started investing myself. If you want to talk some more about it just drop me a text on 07554232227. Thanks

What is angel investing?

[Mark Rocks 57]

Hi @amariino

'Angel Investors' are usually high-wealth individuals who provide financial backing for smaller start-ups or entrepreneurs whose business ideas they're onboard with  Sometimes they're called private or 'seed' investors.