We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How do you buy more than one property?

plarka
Posts: 73 Forumite
How do people do this? Is it only people who have a really high income? Is it possible for us poor people? We own a 2 bed ex-council flat. We live within our means, on dh's salary. I make £500 a month in my small business. Our mortgage is probably about £90,000 now (well, it was £95,000 5 years ago, I hope it's gone down!), and my husband went to the bank the other day and they said we could borrow £140,000. So we can only afford to sell this and buy a house in crappy area, or a 2 bed NON council flat.
I'm thinking, there must be a way for us to find out some smart things to do, that these big property owners do. Or are they just lucky and inherit money or something? Is it possible for regular poor people like us? How do you buy a second property?
I'm thinking, there must be a way for us to find out some smart things to do, that these big property owners do. Or are they just lucky and inherit money or something? Is it possible for regular poor people like us? How do you buy a second property?
0
Comments
-
Rent a room out, use that income towards the deposit on another property.. i know a couple that are onto their 3rd flat doing it that way.
If you can only borrow 140k then your combined salary can't be too high. Generally you'd need more income to be able to buy multiple properties0 -
Start by using the rent a room allowance to earn tax-free money.
Your current income is so low that it is not even utilising your full tax allowance, so think about part-time work or even a full-time job.If you've have not made a mistake, you've made nothing0 -
Bummer. We can't rent out a room because we only have 2 bedrooms, and there are 2 adults and 2 children already! My husband makes £26,000/yr. I make the £500/mo and homeschool our kids, so I can't work more but am growing my business. I'm trying to get my husband to get another or a new job. He says there aren't any. He did mention cleaning ovens though....it's the upcoming thing I guess!
SIGH. Is it impossible for us then?0 -
-
Move the kids in with you for a while?
Move to a 3 bed property?
You need to free up some cash to use as a deposit for the 1st property. Once that is earning, you have a chance to expand if all goes well.0 -
Agree with Thrugelmir.....
Minimise expenses and overpay the mortgage. As you drop to lower LTV's, remortgage to better rates allowing you to overpay the mortgage by higher amounts.
When the mortgage is low enough to allow you to upgrade to a 3-bedroom house, move and rent-a-room. Continue to overpay the mortgage.
When the mortgage is low enough to remortgage for a deposit for a rental property, remortgage and buy a rental property. Given you've paid a 25% deposit, the rental property should look after itself (otherwise, it's probably not a good investment).
Continue to overpay your own mortgage. As rents rise with inflation, your rent on your second property will provide you with an increasing source of income allowing you to make bigger overpayments on your home mortgage.
Rinse and repeat... In theory, it should get easier each time as you've got more and more income coming from multiple properties.
As the old saying goes, "the first million is the hardest"0 -
We have just purchased another property, we had saved a 10% deposit and because rent on the old place coveredu the mortgage 125% (mostly as we have overpaid over the last few years) it was disregarded by Halifax and we were able to by a place for £130k. And we earn what your husband does between two of us!!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.4K Banking & Borrowing
- 252.9K Reduce Debt & Boost Income
- 453.3K Spending & Discounts
- 243.4K Work, Benefits & Business
- 597.9K Mortgages, Homes & Bills
- 176.6K Life & Family
- 256.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards