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Hi everyone!

My name is Steve and Im a 44-year-old with £120,000 in savings, looking to invest into the property market with a view to retiring (hopefully) at 55 living off my property portfolio.

My situation is that I have been advised by my mortgage advisor that I am not eligible for a residential/BTL mortgage "as yet" as I have not been living back in the UK long enough (just returned after nine years working abroad). The mortgage advisor told me to purchase for cash and then remortgage after six months as I will then be seen as an 'experienced landlord' in the mortgages companies eyes.

I currently live in London (renting) and understand it will be difficult for me to generate any investments in the London area, so I am focusing on my home town of Stoke-on-Trent, focusing on properties between £50,000 - £70,000, with a view to rent out for a return of £5000 to £6000 per annum, or generating between 8% - 10% yield.

I have just purchased for cash my first property for £68,000 (was advertised at £75k) which is a 3 bedroom terraced house in Stoke-on-Trent that brings a rental return of £6300 per annum, so I'm happy with my 1st purchase.

My ideal situation in 10 years would be that I would have between 6/10 properties all being rented out for around £6000 each per annum.

The questions I keep asking myself are:

How can I achieve this within the 10 year time frame with £120,000?

I understand that the properties in Stoke do not gain capital appreciation as they do in London and the south-east of England etc, so would I go for a typical capital repayment mortgage, or an interest only mortgage, or a mix of the both throughout the 10 year period?

I am currently searching the Internet and auctions for cheap properties that fit my target yield and 10 year objectives, but I keep asking myself whether my objectives are achievable with the investment I have and my proposed strategy.

Right now I am not looking to live off my investment as I can carry on working for the next 10 years. That said, if there was a way of living off my investment "straightaway" and also being able to live off the investment after 10 years, I would seriously consider this.

I am also looking at having my mortgages paid off in ten years time, but does that mean I only opt for 10 years mortgages at the start.

And cash flow, I am reading that as an investor, I should have at least two years cash flow put to one side, but that seems quite high.

I'm sure my situation is very similar to other people you on this forum and I would welcome any advice on my situation

Thanks everyone and I look forward to engaging with you all..

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Hi there Steve! Welcome! 

My name's Steph and I invest in Crewem just near to Stoke :) Lots of my friends invest in Stoke also, so I know lots about that area.

Your strategy is a good strategy I think! Steady and slow and very well-informed, I like it. It sounds like you're already buying below market value and making sure you get a good deal, so I think your strategy will work out just fine. Stoke house prices are steadily going up and with the introduction of HS2 to Crewe, there's been quite a bit of regeneration around the area. The university is also expanding, as is Festival Park and Hanley Town Centre. 

Have you ever considered HMO's? There's huge demand for them in Stoke and they'll bring in around £2000/month gross profit. Usually £1000/month net profit. That would speed up your process quite, although takes a bit of effort to get them started etc so they aren't for everyone.


Best of luck, if I can be of any help let me know! 



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