19, got my first property after being given 50k

moneylover13

I've recently turned 19 and a few months ago i was given 50k by by parents as early inheritance as they want to see me enjoy and expand that money whilst they are still here. With that money i put 7k of my own money with it and bought a house in need of major renovation and have been renovating it with my dad since again with money i have saved. I've got a good friend to rent the house straight away when i finish it in a few weeks time the plan is to then remortgage it to buy another property either cash or with a mortgage (depending on if a bank will give me a mortgage) and get that rented out and carry on like that to build my own property portfolio. I currently work full time on £10k a year and live at home with my parents, i do have my own car so my outgoings are approximately £100 a month all the rest of the money im earning is being saved for buying properties. What i would like to no is which is the best bank to go to to give me the mortgages i want to build a property portfolio? Also if anyone could give me any tips on mortgages or buying properties cash it would be appreciated. Thanks

thesaint

I don't understand how you can buy a further property for cash.

How much cash do you have?

moneylover13

firstly thanks for reading and replying, as it says above by remortgaging the first property

anselld

thesaint wrote: »

I don't understand how you can buy a further property for cash.

How much cash do you have?

OP bought for cash with £50k
Renovated, presumably increased value to say 70k
Can theoretically now get BTL mortgage for 75% of 70k and release £52.5k to buy another similar.

OP you need to talk to a mortgage broker to see what is feasible. Low income and not having your own residential mortgage will be a problem for many lenders.

maria3104

Many congratulations. My son also bought his first buy to let at 19, although with a mortgage. He has now saved up enough to either buy another, or maybe do another business thing with it. Up to him to decide. Also has now £30,000 in his pension, yes I did type pension. He is earning a low income, but lives with parents and invests every penny he earns. His atitude is save whilst I can.

As you are going to be VERY successful barring disasters, can I suggest you read Money by Noel Whittaker, or borrow it from library. Is is Australian, so ignore the dollar bits and Ausie tax rule bits, but is the most simple comprehensive guide to making and increasing your wealth. I have been in business for 30 years and only wish I had read it in year one.
Good luck.:money:

stator

Lucky sod. Us poor gits with no inheritence are working into 30s before we can dream of buying a house.

maria3104

But isnt it great to see a young lad not wasting his opportunity. Lots would have gone on holiday or bought the 'dream car'. I hope he makes millions from his property empire.

thesaint

anselld wrote: »

OP bought for cash with £50k
Renovated, presumably increased value to say 70k
Can theoretically now get BTL mortgage for 75% of 70k and release £52.5k to buy another similar.

OP you need to talk to a mortgage broker to see what is feasible. Low income and not having your own residential mortgage will be a problem for many lenders.

So...Not cash, but a mortgage...

Mallotum_X

The hard part will be your very low salary, the affordability checks will consider how you can fund the btl mortgage if/when you have void periods. How will you fund any repairs, such as a new boiler etc.

Well done on not blowing the 50k but by investing, however realistically I think you will struggle to get a mortgage for a second place.

stator

maria3104 wrote: »

But isnt it great to see a young lad not wasting his opportunity. Lots would have gone on holiday or bought the 'dream car'. I hope he makes millions from his property empire.

I don't. With limited housing supply, more demand = higher prices = less poor people being able to afford housing

moneylover13

maria3104 wrote: »

Many congratulations. My son also bought his first buy to let at 19, although with a mortgage. He has now saved up enough to either buy another, or maybe do another business thing with it. Up to him to decide. Also has now £30,000 in his pension, yes I did type pension. He is earning a low income, but lives with parents and invests every penny he earns. His atitude is save whilst I can.

As you are going to be VERY successful barring disasters, can I suggest you read Money by Noel Whittaker, or borrow it from library. Is is Australian, so ignore the dollar bits and Ausie tax rule bits, but is the most simple comprehensive guide to making and increasing your wealth. I have been in business for 30 years and only wish I had read it in year one.
Good luck.:money:

Thanks for the advice and support. How old is your soon now? Best of luck to him? Also where abouts is he buying his properties? Thanks