First time investor, invest now?

Discussion in 'UK Property' started by medion, Feb 16, 2008.

  1. medion

    medion New Member

    Just a quick background on me. Im 22 year old recent uni graduate and currently working full time. I have a lump sum saved up (20k) and always been keen to invest in property for a few years.

    Firstly i would like to ask on any ideas on acquiring further deposits for housing. Current income is 17k/year with little to no outgoings and can remain that way.

    Second, is now a good time to invest? plus would a buy to let market be a good thing?

    I was at the point of deciding whether to invest all in one house, buy to let in the uk, or buy abroad but think buy to let is where to start as i want to start building a portfolio of houses. Atm i know its a buyers market and feel refurbishments are not viable yet and many houses are reducing their prices around me which i have noticed since this time last year.

    Any help is greatly appreciated, i did start looking at various victorian style terraced houses in town areas where the rental fee charged can cove the mortgage at the rate i would expect to get. These houses are typically going for 90-100k but the areas are just so-so. Anyway thanks for any help on starting up, esp where to look towards and gaining further finances.
     
  2. Mikeyv

    Mikeyv New Member

    Hi

    Hey,

    You mentioned you potentially looked at property abroad and managed to come up with a lump sum of £20k.

    Well as i personally feel the UK housing market is questionable all though has done very well over the years and generally has a strong economy to keep the housing market booming, I think the next few years will be interesting.

    I am to do with a development on the coast in Bulgaria!! from articles I have read the bulgarian property market should be able to shrug off the US economic slowdown (I can forward you these articles If you wish).

    The website is Moy Holiday Village Bulgaria - Home Page

    You could buy 2 2bedroom 2 bathroom apts with 20k the rest we could get you a mortgage for in which the guaranteed net rental income of 6% would more than cover. Prices include all furniture and all closing/legal costs


    This way you would have guaranteed rental covering your mortgage payments and in this paticular area in Bulgaria there is a lot of exciting projects being built that will make it a very exclusive (the only beachfront residence) in the area.
     
  3. sqftmag

    sqftmag <B>Moderator</B> & Senior Member

    A novice investor? Stick to the UK! Choose a University town or city. Ideally, close to where you live. You don't say where you are based. If you can tell me this, I can better advise you. There IS still money to be made in the UK if you buy at the right price, in the right area. I'd be pleased to tell you more.
    Kind regards
    Michele
     
  4. medion

    medion New Member

    I have read up a bit lately about bulgaria and its property but have never really fancied it to be honest. Ive done alot of research towards Turkey and the bodrum area and so has my dad who is deciding to invest over there. Theres is an option to put both our monies together (~45k) to buy either property or land.

    Thanks for your reply, have read most of your posts and all have been very useful. Im in the lincolnshire area, around rutland water if you know that at all.

    From reading this site indepth i am deciding whether to invest in the uk at a later date. Like today the papers (express) reported record alltime price highs, yet quite a few houses near me that ive kept my eye on over the last year havent sold and have reduced their price.
    Although theres a saving there to be made i feel maybe a greater saving is to be made in a few years? am i right.

    Any help for my area and what are more profitable investments will be of great help.

    Any help to further fund raising ideas will be great aswell.
     
  5. medion

    medion New Member

    I have spent time reading your site, very informative.

    I notice you like the york area alot. Any others closer to me?

    I never really thought about student housing before. I know there will always be a demand for it in university cities etc which is a plus and from being at uni you can charge quite a bit for a nice area and guarantees around 9-10months of the year. Im just looking into this option further.
     
  6. Property Developer

    Property Developer New Member

    Have seen a few 15% per annum 2 year deals providing mezzanine finance to property developers. A nice "hands off" way of investing in property
     
  7. bill mccallum

    bill mccallum New Member

    why not try joint ventures, partner with 3 or 4 others to get a really good investment.

    I'm looking at 3 properties/land investments in Devon & Dorset, with profit potential of 30% - 50%, for example

    1) 10 bedroom property split into 3 flats, purchase price just £250K, refurbishment cost of £50K and re-sale value over £500K

    2) property with DPP for 5 x 3 bedroom holiday units, purchase price £225K, build costs £250K and re-sale value £750K

    3) land, suitable for 3 x 3 bedroom town houses, purchase price £200K, build cost £225K and re-sale price of £750K

    I can raise £100K but need other investors to joint venture.
     
  8. PIDeals

    PIDeals New Member

    Go for £60-80k terraced properties in NE England - with rental coverage of at least 130%.

    You will be able to buy up to 3 properties - we have an in house managing agent in the area, and are seeing some excellent returns.
     
  9. misch.chief

    misch.chief New Member

    Coincidently, I am in identical situation, so this post is perfect. I have decided to hold off while the market looks very unsure and the economy is equally as unsure. I have worked in overseas property before, so do know bits and bobs (coincidently I know a lot about Bodrum investments too - try Cumberland Properties), but maybe not enough to invest and I would like to get myself a property over here.

    Keep posting, there's been some advice!

    Mischa
     
  10. Lsab

    Lsab New Member

    Although not in an indentical situation, I am in a situation!!

    We've been living abroad for the last 5 years. Our son is 15 and the thought of university fees start to loom. If we're out of the UK for 3 years prior to him starting he'll be classed as an overseas student with fees of up to £18k a year :eek:

    We think the time has come for us to buy in the UK but we can't afford much and we have to live in a specific place in S.Wales. I'm thinking of either putting down deposits on a few small properties up north and using the rents to cover mortgage (obviously) and then renting a house for own use in Wales or buying in Wales though we could only afford around £25k for deposit and would have to get an interest only mortgage. Whatever we buy would be with one eye on investment as my husband is only 7 years off retirement and we would probably then move to Egypt.

    We have a studio appartment worth about £57k in Dubai and we're also buying an appartment in Egypt.

    Any comments or advise would be extremely welcome.

    Thanks
    Linda
     
  11. bill mccallum

    bill mccallum New Member


    Some areas in South Wales can offer good value, I have a 3 bedroom house in Newport thats going for £72,000, with a BTL mortgage you would only have to pay a deposit of £10K, a £62K Interest only mortgage would be £320 per month, with a rental of £450.

    if you want to know more my email is mccallum_bill@hotmail.com
     
  12. Figaro

    Figaro Guest

    i think you are in a really good position to buy now. Remember markets and the economy go in cycles, if its on the way down now it'll be going back up before you know it. You need to look at how to take advantage of the peaks and troughs in the market prices as an investor. if you're struggling there's a really good company called Fourth Development who are really good with first time investors. Give them a call and they can give you all kinds of advice.
     
  13. sqftmag

    sqftmag <B>Moderator</B> & Senior Member

    Did you investigate Lincoln? Impressive regeneration. Entry levels quite high now but look for repossessions.
    Even more important now to take a wise investment decision without rushing in!
    That's why I'm so keen on university/tourist cities like York.
     
  14. coggy

    coggy New Member

    Go for terrace or semi detached houses in the North Of England. Aim for properties no more than 90k first time buyer homes.

    Aim for at least 20% BMV and good rental cover above the mortgage for maintenance issues etc.

    Stay away from New Builds, Off Plan, etc.

    Research research research.
     
  15. frj

    frj New Member

    Dear medion,

    I think about TURKY also, it looks good but ALL of TURKY is in FAULT ZONE (earth quake), how about that point?

    i am trying between Dubai & turky , ANY comments BY lsab also ?
    Regards
     
  16. dave99

    dave99 New Member

    Maybe consider Egypt - Red Sea

    .
    Maybe consider Egypt - Red Sea
    ,
    .
     
  17. Real25

    Real25 New Member

    how to invest

    Well as i personally feel the UK housing market is questionable all though has done very well over the years and generally has a strong economy to keep the housing market booming, I think the next few years will be interesting.
     
  18. Real25

    Real25 New Member

    hello im buyer...
    i think You need to look at how to take advantage of the peaks and troughs in the market prices as an investor. if you're struggling there's a really good company called Fourth Development who are really good with first time investors. Give them a call and they can give you all kinds of advice.
     
  19. Rentoroni

    Rentoroni New Member

    I would be a bit weary to invest in property at the moment :( Maybe look into other sectors for options...definitly stay away from the service sector though. Like sqftmag said there is still money to be made, however I would pick and choose the sector carefully. Property just seems a bit risky for my taste :)
     
  20. solutioninvestments

    solutioninvestments New Member

    Hi mate,

    Sounds like you are in an ideal position to wait and see what happens with the economy. In my opinion the market in the UK will not be going back up in value for a good 2-3 years minimum until all this mess with the mortgage markets and the economy is resolved. There are still other areas around the world that have fantastic investment potential however the UK residential market is not currently one of them. With a recession looming you would not be bad advised to hold on to that 20k until the right opportunity comes along.

    Hope that helps

    Duncan :)
     
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