19, got my first property after being given 50k

ViolaLass

thesaint wrote: »

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

But not necessarily a mortgage on the new place. I think that's what the OP meant.

anselld

thesaint wrote: »

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

Remortgage property 1 to release equity (as cash).
Buy property 2 with cash.

maria3104

moneylover13 wrote: »

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

Son is 23 now. He bought in S Wales, but stretched himself to buy in a popular town. We are luckyproperty is much cheaper here than in South East England etc.
He now needs to decide whether to get another house, if he can get a second mortgage, his low income will be an issue, or if he would prefer to invest in his income earning business. He does not want to pay off his BTL mortgage as this will increase his tax bill on his rent and at the moment this house is washing its face nicely. About 50% mortgagesd. He also does not want to tie up any more cash into his long term pension.
Good luck.:money:

gazfocus

Most BTL lenders would require you to have a residential mortgage on one property before they will allow you to have a BTL mortgage on another, and you need to have a certain level of income so I suspect you may struggle here.

Pixie5740

moneylover13 wrote: »

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?

Your best bet would be to make an appointment with a mortgage broker who specialises in BTL mortgages. Your low income might be an issue but that's something a mortgage broker would be better to advise you on.

SerialRenter

Congratulations on getting on the ladder so young, a sensible approch to money + generous parents is a good mix.
Doing some quick calculations, look like you're on the national minimum wage for 18-20 year olds?

Try and find some opportunities to earn more, or are you on an apprenticeship? Salary is a big factor in mortgage affordability so this will have to go up before you'll be able to borrow more to expand your portfolio.

ManicRower

I echo the sentiments above, fantastic to see someone so young looking to invest for their future and (hopefully for them!) make a lot of money.


To be honest the most impressive part of their post is that they earn approx £10k a year and have managed to save £7k of their own money to go with the £50k inheritance.


I believe the saying is "It's not what you earn, it's what you spend" and this is case in point. There are people all over these boards who, for a variety of reasons have not been able to save anywhere near £7k despite earning considerably more than yourself. Some absolutely have more outgoings and dependents, whereas some just don't have the same mindset as yourself, don't see the bigger picture and are unable to ditch the holidays/sky tv/new car for a year or two in pursuit of home ownership.


I suspect that by saving £7k you have in fact created your own luck by demonstrating you are trustworthy and serious about getting on the property ladder, hence your parents giving you £50k 'early inheritance' safe in the knowledge you wouldn't p*ss it up the wall on birds, booze and cars.


I take my hat off to you and wish you the best of luck.