Young person wanting to invest in property I need some advice though

kiermcgovern

So I'm 18 years old and I just got a job at the hilton as a commis chef making £1200 a month and all I have to pay is £140 a month for staff accommodation and food and drink is all provided. So I suppose the rest is really just spending money. I've thought about saving all my cash and keeping £500 for the month until I have enough to put a deposit on a property in a really good area then just rent it out and paying back the mortgage while I continue to live in the cheap staff accommodation. Does anybody have any personal experience or suggestions that could help me?

GRM

Less than £5/day sounds remarkably cheap for full board and lodgings, is it under a bridge?

AndyT678

GRM wrote: »

Less than £5/day sounds remarkably cheap for full board and lodgings, is it under a bridge?

Worse than that; I think it's in a Hilton!

sulphate

You may struggle to get a BTL mortgage when you don't own a property yourself.

Pixie5740

If you're looking at getting a BTL mortgage then generally you are looking to have at least a 25% deposit although I have seen some BTL mortgage products with higher LTV but I'm not sure of the criteria for getting them.

Some lenders won't lend on a BTL if you don't own (either outright or with a residential mortgage) but some will.

It's a great idea to save/invest your money rather than blowing it all on !!!!! like I did at your age. Just do your homework and maybe even see an independent financial advisor as there are other ways to make your money work for you.

kiermcgovern

The Tay river is literally at my doorstep and the scenery is beautiful, so it doesn't bother me if I'm living in a hole considering I'll be at work most of the time and doing other things, a bed to sleep on at night is good enough for me. And the actual hotel is about a 10 minute walk from where I'm staying. But that's really beside the point I just need some advice

mikey_l

Buy to lets are going to require at least 20-25% deposit so depending on the area you'd need to save for a while.

You've got the right idea though, keep putting the extra away and you'll have a decent chuck saved soon enough.

You may even decide in a year or two to buy your own place instead, you're not going to want to live in a hotel room forever!

kiermcgovern

Pixie5740 wrote: »

If you're looking at getting a BTL mortgage then generally you are looking to have at least a 25% deposit although I have seen some BTL mortgage products with higher LTV but I'm not sure of the criteria for getting them.

Some lenders won't lend on a BTL if you don't own (either outright or with a residential mortgage) but some will.

It's a great idea to save/invest your money rather than blowing it all on !!!!! like I did at your age. Just do your homework and maybe even see an independent financial advisor as there are other ways to make your money work for you.

I've been told financial advisors are a rip off, but I'm not entirely sure that's true is it just a matter of who you go to? I wanted to learn the stock market as well.

RAS

What are local house prices like? How long would it take to save 25% of a small terrace?

One problem with advising here and now is that we do not know how the referendum will go.

If you were in england I would suggest thinking about a 2 bed and get a lodger for a while (tax free)?

Also with the Hilton, any chance of moving around the world?

Pixie5740

If you're not sure what you're doing it's probably a good idea to see an IFA. I did that when I wanted to set up a private pension as I wasn't quite sure what I was doing.

IFAs either charge fees or commission and they should tell you their charges upfront. Some will offer a free first meeting. If you do decide to see a financial advisor make sure they are independent and not the advisor at the bank branch who can only sell you the bank's products.

AnnieO1234

You may be better approaching a family member and setting something up officially in respect of a BTL. Do either of your parents have something like an HSBC premier account. If so you may (if you still live with them) be able to get free financial advice.

As others have said you will struggle with a BTL without a property and no credit history either.

In respect of shares, everyone has to start somewhere. Find yourself a broker, and play around in the beginning. Don't commit to spending more than you can afford to lose, buy shares initially in what takes your fancy, and start watching for patterns in the market. Look to friends, relatives and the rest of your network for info that may be relevant.

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