How to get started in Property-Question.

Discussion in 'General Property Investment Discussion' started by Enda, Aug 20, 2018.

  1. Enda

    Enda New Member

    I am 26 and I am thinking of going into property. No funds atm.

    I am just confused as to how it works.

    So for example if I had a property that was for sale for 100,000 and the deposit was say 20,000. If I wanted to buy this property and rent it out to a family, would I have to pay the 100,000 grand upfront or could I just pay the deposit and then use the familys monthly rent to pay the mortgage?

    Would appreciate any help.

    I just don't know how someone would make a profit quickly if they had to pay the 100,000.
     
  2. FWL

    FWL Member

    You would need to take out a mortgage for the balance, i.e. £80,000 - and then in theory you could use the rental income to cover your mortgage payments. Over time you would pay down the mortgage, increasing your equity stake in the property and then when it is all paid off you have a £100k property (plus price rise) which is debt free.

    In the meantime, if the price increased to £140,000 then you could simply sell, repay your mortgage and pocket the rest as profit.
     
  3. Enda

    Enda New Member

    Whats the best way to get started, say if a person has 5,000? whats the best way to get on the property ladder in your opinion?

    thanks for the reply.
     
  4. totallyproperty

    totallyproperty Administrator Staff Member

    Hi Enda,

    welcome to the forum! What are your goals in property? Is there any way you could raise more than £5000k? Do you know anyone with a little more experience that you could do a Joint Venture with?

    If you are brand new to property investment, some of the investment strategies where you require little cash (such as Lease Options) would be better suited to someone with a little more experience. With that in mind, I would suggest one of 2 things...

    1 - Do a bit of property education to learn in more detail all the options that are available to you. We have educational Ebooks here on the forum and I would definitely recommend reading our ebooks on Passive Income and HMOs. You might also like to consider working with a Mentor.

    2 - There are opportunities to raise (up to) 100% of the finance needed to buy, renovate and sell property. If there is profit to be made and your Due Diligence stacks up, there are companies that will JV with you (lending you all the money for a share of the profits). One company I've recently come across have excellent educational support as well as lending you the finance here.

    I think you should be looking at your goals for 5 and 10 years time... would you like to be 'hands on' and be a landlord? Would you like a full time career in property? Would you like to grow an income on the side and have a career in a totally different industry? Answering these things will help you shape the path to go down and help you make decisions.

    I hope we can help you here on the forum with any specific investment strategy questions you might have :)

    Kelly
     
  5. Enda

    Enda New Member

    Aww thank you very much Kelly. I will certainly have a look at the other resources.

    Basically I want to have a career in my regular job, but supplement my income and ensure that I always have enough money to do the things I want.

    I am seeing more and more people get to 50's,60's and not have enough money to go on that holiday, buy a new suit, furniture etc. and these are people who often have worked professional lives their whole lives.

    I am 26 and I want to ensure my future is safe, secure and not on the breadline.
     
  6. totallyproperty

    totallyproperty Administrator Staff Member

    I couldn't agree more! I think more and more people are turning to property to generate a good retirement income and you are definitely thinking about it at the right age.

    The other option you have is Property Crowdfunding. Essentially, with Crowdfunding, the price of a property is distributed amongst a crowd of people, as is any rental income and any profits generated from the eventual sale of the property. There are many Crowdfunding platforms out there, each with a slightly different twist. But as you can invest from as little as £100 this could be a good 'hands-off' way for you to get started?

    I would recommend taking a look at British Pearl or Property Moose to learn more about it :)
     
  7. Longterminvestor

    Longterminvestor Administrator

    Property is the new pension for many people and while the market may be slowing a little just now, in the long term property has proven to be an excellent investment. However, not all properties will perform the same so do your research and know your market.

    One tip, it is as important to know when to sell a property and move on as it is to know when to buy. A lot of people dont realise this and as trends change this can impact your real investment returns.
     
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