First time investor: WHAT TO DO WITH 130K?!

Discussion in 'General Property Investment Discussion' started by Meister-char, Apr 5, 2019.

  1. Meister-char

    Meister-char New Member

    I will be receiving in the region of £125k-£135k in inheritance mid-august.

    I intend on going down the BTL route but am struggling to decide the best course of action. Here's some context of my situation:

    Graduating university at 27yrs this June

    Official income only £500 p/m! + online income amounting to about the same.

    Savings £10,000

    Will NOT require somewhere to live over next few years as am planning extensive travels.

    I've looked at buying a single property in Nottingham to rent for a 7-9% yield, this + my online earnings will easily be enough to fund my lifestyle, in fact I predict I would be able to save £400p/m this way. However, I have run some numbers through a spreadsheet and it seems that if I were to purchase 2 130k properties with 65k BTL mortgage on each my rental income would increase after mortgage payments from (£758.33 to £998.67 at 7%) or (£975-£1432 at 9%) (I appreciate 9% yield is very ambitious but was just demonstrating the range, 8% seems achievable in certain areas?). Obviously, these figures increase further with 3 properties.

    Firstly, am I way off the mark with any of these ambitions? I'm not a property owner and this has all happened rather quickly, however I have some interest and capacity for business and numbers.

    Secondly, is there any chance I would get a BTL mortgage with no substantial income in the first place? If not, then what about renting 1 property and remortgaging after a year after some experience, would this sway a lender? Guarantor mortgage?

    Thirdly, I'm open to any other ideas/strategies and education. essentially I'm looking to maximise passive income whilst growing capital hence property seemed the way to go.

    Thank you for reading, I hope this is posted in the correct place, if not, please advise.

    Best wishes
  2. diyhelp

    diyhelp Active Member

    I thought you needed £25k minimum income to get a BTL mortgage these days and you were not allowed to include the rental income from the property you were buying. Is this still the case?
  3. Meister-char

    Meister-char New Member

    Generally however a Google search reveals some pertaining to offer no minimum income. I'm not sure of their efficacy.
  4. Longterminvestor

    Longterminvestor Administrator

    If you try mortgage brokers I think you will see some private banks and niche lenders willing to offer a BTL mortgage backed by assets and cash rather than income.

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