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Need advice for

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  • Need advice for

    Hi everyone,

    It is my first post on this forum, I am a 19 year old University student hoping to get my foot on the property ladder, as the dream is to maybe make a nice living from either buying to let or developing.

    I do not come from a particularly wealthy family however during the 2 years that i have been studying i have been saving some of my student loan, along with holding down a part time job in order to have a good start in property when i graduate.

    Can anybody with maybe experience of doing something like this or similar advise me of any setbacks/legal issues/other issues that i may face along the way?

    It is only an idea which we have suggested recently so nothing is set in stone. I am just hoping to get an idea of the options available.

    Thanks for any responce!

  • #2
    Dependent on the part of the UK where you're looking to buy, it may be easier or harder to realise your dream.

    However, just some thoughts and ideas to start you off:
    - Most mortgage lenders require you to have your own home or a buy to let (BTL) property before they give you a mortgage. This means that if you are looking to buy your first property as an investment, you will have limited lender options.
    - In order to buy your own home, a 5% deposit may be enough, but to buy a BTL property, you typically need 25% deposit. However, dependent on your situation and the property, 15-20% deposit may be enough.
    - Build your credit history by being on the electoral roll, taking out a credit card or two (more won't help), use them and repay them every month, make all your payments on time, never take a payday loan. Perhaps buy a car with small car finance and repay it as per schedule. All of this teaches you to manage debt, so mortgage lenders can see that you're a reliable borrower. Don't take out too much credit all in once though - keep it steady and manageable.
    - Research what costs you will incur during the buying process and while owning the property.
    - Check what rent you can get and how it compares to the funds invested (i.e. check the ROI)
    - Check the taxation rules for property rental income (best is to speak to an accountant), so you can see how the finances work and what your realistic profit may be.
    - Start small and learn along the way. You'll hear about making big profits from converting an old house into a 10-bed HMO and raking it in. People doing it didn't start with this project either or did it with the help of well experienced partners. Careful with get rich quick schemes.

    The topic is so vast that I'd encourage you to do a lot of reading / listening before parting with hard-earned cash.
    If you are looking to buy a property for the purpose of letting it out, then you will need a buy to let mortgage, unless you are buying the property for cash. This complete guide will help clarify the buy to let process with its mortgage options, related costs, rules and regulations, taxation and many other aspects.
    I am a Mortgage Advisor
    For further information and for tailored advice:
    [email protected]