New to property investment

Discussion in 'General Property Investment Discussion' started by John15, Sep 11, 2019.

  1. John15

    John15 New Member

    Can someone please guide me in property investment as I am very new and inexperienced in this field?

    I have very little savings which I am thinking of investing in buy to let property. With my savings it is difficult to find buy to let property that cover 25% deposit and after long search I have managed to find some studio apartment inside student hall in Birmingham exclusively for renting students and those apartments are managed by the university or other third party private company.

    Those apartments have shared kitchen with own bedroom with ensuite with long lease.

    I was told by the selling estate agent that there are approximately £3000 per annum charges on those apartment including ground rent, service charge and full management fees including finding student.

    The rent will cover the cost of interest only mortgage, ground rent, service charge and management fees.

    My goal is to sell this property back in 5 -10 years time for profit. . Do you think it is worth investing on those properties? If I have to buy normal property, it will take me another 2 to 3 years to save deposit.

    Those properties are very cheap and affordable for me and am wondering if there are any loopholes although selling agent will not disclose any information. Has anyone had any experience or knowledge?
  2. FWL

    FWL Member

    I would be wary as it seems as though you have no control over the studio flat you are looking at? If you could find a more traditional property you could rent out yourself and save some significant fees. Without more detail it is difficult to advise what I would do in your situation.
  3. John15

    John15 New Member

    Thank you for your reply. Yes, you are quite right that I will have no control over the flat as it will be fully managed by university and they will set up their own management fees which is around £3K per annum and rental income will be around £5K per annum.

    I am actually looking for long term investment and regular rental income from property as I am planning early retirement in about 12-15 years time and at present I don't have enough deposit for traditional property. It will take another 2 -3 years to save deposit to buy traditional property but price of those properties may go up.
  4. realdeals

    realdeals Active Member

    One quick question, what happens to your income outside of term time? A lot of students go home during this period.
  5. John15

    John15 New Member

    I haven't thought about it. I need to find out more from selling agent.
  6. lookinginvest

    lookinginvest Member

    My advice @John15 would be not to rush in and I would personally be uncomfortable investing in a property but effectively having no control over it. Just doesnt sit right with me but I can see many new investors being sucked in by this idea of easy money.

    There is a mentorshiop service by the owner of this site which you can find at:-
  7. Longterminvestor

    Longterminvestor Administrator

    I think it is better to take time to study the industry before you jump in with deals which can on the surface look too good to be true. As long as your know the detail you can make your mind up but it you dont know what to ask.....

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