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Investing £80k in property advice please


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Good evening all,

Advice required from all you property experts :-)

I have £80K that i wish to invest in property.

I live in birmingham but have been looking at liverpool for investment.

I am planning to:

Year 1
BTL x4 houses (3 bed terraced) via a ltd company at approx £70k each with a approx deposit (and stamp duty) cost for each property at £20k

Working out figures i believe i should be able to achieve £2500 profit after 12 month after cooperation tax has been paid from the company.  So after 12 months i should have £10k for 4 properties.  

Year 2
£10k profit in company + £10k i top up myself = purchase property number 5.
After 12 months approx profit £12500

Year 3
£12500 profit in company + £7500 i top up myself = purchase property number 6.

Year 4
continues as pattern above.

Obviously i am assuming the property purchase price will remain the same, however above gives an idea of the plan.


Question:

Is liverpool a good place to invest? From searching i see its not an ideal place to invest for capital gains however the yield return is high.
 

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Hi @steve84

Great to have you on the forum, and thanks for laying your plan out for us!

It's good that you mention Liverpool, as the Robs have singled it out as one of the 4 places to watch when it comes to property investment hotspots in 2021.

Affordability remains low in the city, but it has performed very well over the last few years - and this looks set to continue.

We've got lots of other members on the forum who have had great success investing in Liverpool, and I'm sure they'll be happy to share their insight with you :)

Thanks

Mark

 

Mark Rocks
Community Builder and Content Writer

www.propertyhub.net

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I think you are being way to ambitious on both counts of finding decent properties in Liverpool for 80k (versus slightly dodgy areas) and being able to buy/min-refurb/get-tenant etc 4 times in a year. My experience on LTD mortgages is 4-5 months as they will do some serious checks against you personally as well as the company. Whether you will actually get 4 mortgages is also another question. It also looks like there isn'y much of a buffer in your calc for deposit/solictor/stamp-duty/etc at 20k per property. 

I would say 2 per year is amore realistic goal and maybe 100k each to get in a decent area - but I am not a Liverpool expert so just going by what others have said. 

Good luck on getting started (I am also in Birmingham and decided to stay local so far)

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Yeah I would echo the above. My advice would be to start with 1 for the first year and see how you go. Realistically if you are budgeting 20k for a property including everything you are going to get a poor property and in turn probably a poor tenant. My advice would be to budget say 30k a property, start with 1, get something decent, get a decent tenant and see if you enjoy the process and everything that goes with it.

Property isnt a hands off process so you need to actually enjoy it and everything that goes with it, and starting with one and building gradually will give you a flavour for it.

Like the above says, if you enjoy it and can afford it perhaps buy 2 in your second year and again assess and evaluate. Profit projections can often be over estimates so bear that in mind and assess things using a smaller sample first. I would also think you will find it hard to agree that many mortgages in a short space of time, but that isnt my expertise so I couldn't say for certain.

Best of luck and welcome to the forum.

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