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Investing on a budget

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Author Topic: Investing on a budget  (Read 67 times)
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Posts: 1

I like property

« on: July 21, 2020, 07:26:28 PM »

Hi all,

I was wondering if there are any methods one could invest 10k-15k into property and expect a decent return? Preferably it would give a monthly return (just like if I were to rent a property). Also, I was wondering if there are many people who are willing to invest in property but just can't quite afford the 20k mortgage deposit, let alone other costs that come with becoming a landlord? Any advice would be appreciated greatly!  :)
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« Reply #1 on: July 22, 2020, 09:21:38 AM »

No. Best to stop dreaming. Firstly, it isn't as lucrative as you probably believe. Secondly, any company, outfit or partnership who will offer you this ability to dip your toe-in will be out to fleece you, big-time. Thirdly, the best way to play in being a Landlord is by having large amounts of capital that you can afford to 'let go' metaphorically... not lose, because it's not the stock market, but say goodbye to... 10,000 to 15,000 doesn't cut it. Fourthly, you should always concentrate on your own home first... if you have a mortgage still, consider overpaying or paying-off... if not, then you should be in a good position to save more to get to where you need to be. Fifthly, as you allude to, there are other costs with becoming a Landlord - once you've bought somewhere you need to have a war-chest for the unknowns... fence falling down (1,000), boiler giving-up (2,000), major leak from roof (?) - you're not in that position. So, best to stop dreaming. Personally, and don't take this as looking-down on you, because it's not and everyone starts somewhere, I see too many people dipping their toes in the water of being a Landlord and getting tired of it all pretty darned quickly... the responsibility, the admin., the constant legislation changes, the tax returns, the Tenant complications (demands)... everyone generally starts with one property, but there are too many people 'playing'... and that brings an image with it of unprofessionalism... not because they're bad Landlords who want to take advantage of Tenants by letting out slum properties, but more because it's not their thing... they actually wanted a passive income and while Landlording can be quite passive... it is not the same as passive. So these Landlords (realising it didn't make them a millionaire) kinda give up on it... and let things slide, and put it on the back-burner.

If you had funds that allowed you to jump into the game more fully, and you wanted to expand and build up a nice portfolio where you would a responsible, possibly full-time, Landlord then I would say - bide your time and jump in if the market sees a nice (?) downturn due to Covid-related distress... and if the Government makes further changes to SDLT out of desperation... but right now, although the market appears depressed, I would urge a level of caution. The time doesn't even feel right to me.

That is my advice. Most people don't take it.
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« Reply #2 on: July 23, 2020, 10:43:50 AM »

Agree with everything Hippogriff says.This is a time to wait and see.Even before Covid your idea would be unwise.If you have your own place with a mortgage,I would pay some of it off.The most important investment is your own home.If you have any concerns about your job security,I would hang onto the money for now,it could buy you some time.
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