Saved £15k-20k, would it be worth buying a buy-to-let in Manchester?
£15-20k in London wouldn't touch the surface but with £15-20k in the bank, plus an annual salary of £23k, I'd have enough to get £125k mortgage and a buy to let in Manchester, close to the city centre.
Would it be worth doing this if I don't intend on owning another property for 5-10 years?
Yields are around 6% and house prices are still very attractive whilst more and more companies are opening offices in the city.
Would it be worth doing this if I don't intend on owning another property for 5-10 years?
Yields are around 6% and house prices are still very attractive whilst more and more companies are opening offices in the city.
(edited 7 years ago)
Original post by vinchy
Do it quick.There is never a better time to get property.Its going to get worse.
I mean the UK will eventually need a real second city. London can't go on for the next 50 years still being heads and shoulders above the rest.
At the moment the UK only has one major city and it seems all indicators are pointing to Manchester being the second major city in the next 50 years.
Original post by accno1
I mean the UK will eventually need a real second city. London can't go on for the next 50 years still being heads and shoulders above the rest.
At the moment the UK only has one major city and it seems all indicators are pointing to Manchester being the second major city in the next 50 years.
At the moment the UK only has one major city and it seems all indicators are pointing to Manchester being the second major city in the next 50 years.
You can't buy to let unless you own another (residential) property. There's a chance that if you were to buy one (and get accepted for mortgage etc) that you could let it out without the bank knowing, but this would probably be in breach of your mortgage Ts&Cs.
Posted from TSR Mobile
Posted from TSR Mobile
Birmingham brah
Original post by vinchy
Yes manchester and bristol.I would not buy london either.Just out of interest,how did you manage to save so much?
I've just worked and saved and not spent anything. It's basically impossible for me not to increase my savings everyday.
I'm not frugal, I was really social at uni but I've struggled since. So I've found other ways to interest myself and this has meant I've spent hardly anything.
I don't feel restricted either, there's just nothing I want.
I have clothes, a watch and a car. I can afford decent supermarket food and drink and bills are taken care of. I also live at home as I don't ever wish to make another man richer, again.
I paid rent whilst at uni and that will be the last time.
Sir Alan Sugar makes far more money from property than any feasible business venture he currently owns. Land is the only thing accountants don't depreciate, every other tangible or intangible asset is depreciated, that tells you something.
I just want enough to live comfortably. Building this in your twenties will help you later on
Original post by accno1
I've just worked and saved and not spent anything. It's basically impossible for me not to increase my savings everyday.
I'm not frugal, I was really social at uni but I've struggled since. So I've found other ways to interest myself and this has meant I've spent hardly anything.
I don't feel restricted either, there's just nothing I want.
I have clothes, a watch and a car. I can afford decent supermarket food and drink and bills are taken care of. I also live at home as I don't ever wish to make another man richer, again.
I paid rent whilst at uni and that will be the last time.
Sir Alan Sugar makes far more money from property than any feasible business venture he currently owns. Land is the only thing accountants don't depreciate, every other tangible or intangible asset is depreciated, that tells you something.
I just want enough to live comfortably. Building this in your twenties will help you later on
I'm not frugal, I was really social at uni but I've struggled since. So I've found other ways to interest myself and this has meant I've spent hardly anything.
I don't feel restricted either, there's just nothing I want.
I have clothes, a watch and a car. I can afford decent supermarket food and drink and bills are taken care of. I also live at home as I don't ever wish to make another man richer, again.
I paid rent whilst at uni and that will be the last time.
Sir Alan Sugar makes far more money from property than any feasible business venture he currently owns. Land is the only thing accountants don't depreciate, every other tangible or intangible asset is depreciated, that tells you something.
I just want enough to live comfortably. Building this in your twenties will help you later on
Thanks man, am inspired!
Original post by accno1
£15-20k in London wouldn't touch the surface but with £15-20k in the bank, plus an annual salary of £23k, I'd have enough to get £125k mortgage and a buy to let in Manchester, close to the city centre.
Would it be worth doing this if I don't intend on owning another property for 5-10 years?
Yields are around 6% and house prices are still very attractive whilst more and more companies are opening offices in the city.
Would it be worth doing this if I don't intend on owning another property for 5-10 years?
Yields are around 6% and house prices are still very attractive whilst more and more companies are opening offices in the city.
it is certainly worthwhile as long as you aim to profit in under a quarter century it's a worthy investment
Original post by accno1
Sir Alan Sugar makes far more money from property than any feasible business venture he currently owns. Land is the only thing accountants don't depreciate, every other tangible or intangible asset is depreciated, that tells you something.
I just want enough to live comfortably. Building this in your twenties will help you later on
Sir Alan Sugar makes far more money from property than any feasible business venture he currently owns. Land is the only thing accountants don't depreciate, every other tangible or intangible asset is depreciated, that tells you something.
I just want enough to live comfortably. Building this in your twenties will help you later on
land isn't the only thing
gold, silver and platinum bullion
fancy coloured diamonds
large white diamonds (2ct single stones)
certain rare collectables like rare cars and watches if done correctly
Original post by accno1
£15-20k in London wouldn't touch the surface but with £15-20k in the bank, plus an annual salary of £23k, I'd have enough to get £125k mortgage and a buy to let in Manchester, close to the city centre.
Would it be worth doing this if I don't intend on owning another property for 5-10 years?
Yields are around 6% and house prices are still very attractive whilst more and more companies are opening offices in the city.
Would it be worth doing this if I don't intend on owning another property for 5-10 years?
Yields are around 6% and house prices are still very attractive whilst more and more companies are opening offices in the city.
Go in eyes wide open. Can you afford to pay the mortgage for several months if the property is empty or your tenants don't pay their rent? Can you afford any large capital gotchas that owning a property might throw at you? I know a few people who have bought to let, and all have had their fingers burned to the tune of thousands of pounds.
It isn't always a one way ride. Be warned.
This is what I'd like to do if I have enough of my student loan left!
Original post by Edminzodo
This is what I'd like to do if I have enough of my student loan left!
A friend at my work did it.
He works at my firm, he hasn't told his bank that he lets it out but he did live in it for 1 week and then will claim a change in circumstances lol.
I wish I saved more of my loan/grant but hey, it sets you back a few years and trust me, the fun at uni is priceless.
Time has a price and you'll never get those years back
Original post by accno1
with £15-20k in the bank, plus an annual salary of £23k, I'd have enough to get £125k mortgage and a buy to let in Manchester, close to the city centre.
OK reality-check time.
As previously mentioned, you can only purchase BTL if you already own a residential property. By the sounds of it, you plan to buy both a residential property and BTL.
1 - I doubt you'll even get a 125k AIP on just 23k salary after factoring in living costs. It's a lot tougher now with the new lending criteria and affordability checks.
2 - There aren't 100% LTV mortages any more, so you would have to put down at least 10% (could go 5% but I don't recommend doing this at all). That's ~14k gone. Then another 1k in fees for a decent solicitor. Could probably look into those Help to Buy things, though.
3 - Some BTL lenders require you to have a minimum salary of £25,000
4 - The maximum LTV on BTL mortgages is 75%. Even then, sometimes it's still not enough. Maximum lending amount will be calculated with the notional rate of 5% NOT the product rate.
I don't know the house prices up north but I'm going to assume a 2 bed can be bought for £120,000. Which means you'll need a £30,000 deposit to get your hands on it. Don't forget you'll now need to pay an extra £3600~ on top of stamp duty as a surcharge on second home purchases. Oh and another £1000 in solicitor costs, some more for an estate agent and some to put the property in a ready to rent condition, some money for the accountant, etc.
5 - Don't forget to pay your tax, too. In the coming years you won't be able to claim mortgage interest relief, so say goodbye to your profitability.
BTL can still be very profitable, but you have to re-think your strategy. Nowadays, anyone looking to leverage that much will be punished financially, very hard.
My advice to people thinking about investing in BTL nowadays is to only get into it with a low gearing strategy. (I suggest 40% deposit) Lower risk, less borrowing, less affected by the recent changes regarding mortgage interest tax relief, etc.
Keep saving and don't be greedy. Take it one step at a time. There are many ways to safely grow your savings. Diversify your investments, don't put all your eggs in one basket. Maybe think about BTL when you have 35-50k lying around.
(edited 7 years ago)
Quick Reply
Related discussions
- Confused about uni for employability
- Mining Crypto at University
- List of US colleges that offer financial aid and scholarships to intl students
- Confused about which uni to go to
- Just Hit £30,000 Net Worth at 21 Years Old, AMA!
- Is earning 25k a year considered poor?
- Which uni will lead to better graduate prospects
- Buying a property
- Any hope for young buyers?
- The Budgeting Spreadsheet and Tips thread
- How are you planning to buy your first house?
- Type of cookware to buy
- Sir Howard Davies: Not that difficult to buy a home, says NatWest chair
- Ophthalmic dispensing to optometry
- Living at home during University
- Is it possible to buy a house before it is valued and then sell it after valuation?
- Is My Pay Rise Expectation Unreasonable? (AAT Apprenticeship)
- What resources and tools would be good to get for my choices?
- How i handle my money at manchester met
- Flatmates want me to split costs of things I'm not going to use?
Latest
Trending
Last reply 1 week ago
I think I have a Cifas Marker on my name , can I still open any banks ?Last reply 3 weeks ago
Has anyone had their student finance paid into their partners or parents bank?Last reply 1 month ago
Introduction to UK Financial regulations and professional integrity SCAMTrending
Last reply 1 week ago
I think I have a Cifas Marker on my name , can I still open any banks ?Last reply 3 weeks ago
Has anyone had their student finance paid into their partners or parents bank?Last reply 1 month ago
Introduction to UK Financial regulations and professional integrity SCAM
