Help please Property investment 70k

andyuk21us

Help please I realy need some good advise on investing 75k Initially I was looking to buy a 3 bed house in Norfolk or Great Yarmouth for 75k cash I probley will be looking recieve £550 but I have been told by a estate agent thay can put me I touch with a broker and I will be get a beter return on my money to buy two btl with my 75k not sure as I have just moved surely the change of address will efect me geting a btl morgage or maybe I will be beter buying one house in cash but it would be nice to invest in the best way and I the best area for the best return as a cash buy Ian not realy sure we're to look for property's sorry guys if I am rabbit in on abit I am a it of a novice your advice realy appreciated

buggy_boy

Start with lots of research, firstly ignore anyone that tells you being a landlord is easy money, it can be if you find the right tenant and the right house but it can also be a real head ache.

Google is your friend... As for one house or two it depends on your risk level, buying one house for cash is extremely low risk, buying two houses you increase your risk but also increase your reward. I wouldnt jump straight in with two properties, stagger them at least 18 months apart so you get the hang of it...

andyuk21us

I was thinking of buying one house in cash maybe in two year I could remorgage in the mean time prepare my self for a re morange proces at the moment I am not even on the electroll

ognum

andyuk21us wrote: »

Help please I realy need some good advise on investing 75k Initially I was looking to buy a 3 bed house in Norfolk or Great Yarmouth for 75k cash I probley will be looking recieve £550 but I have been told by a estate agent thay can put me I touch with a broker and I will be get a beter return on my money to buy two btl with my 75k not sure as I have just moved surely the change of address will efect me geting a btl morgage or maybe I will be beter buying one house in cash but it would be nice to invest in the best way and I the best area for the best return as a cash buy Ian not realy sure we're to look for property's sorry guys if I am rabbit in on abit I am a it of a novice your advice realy appreciated

I think you need to sit down with a piece of paper and do a Buisness plan.

Why do you want to invest this money in property? Capital growth? To live on the return each month?

Can you get a BTL Mortgage? Have you got spare funds for repairs and upkeep like boiler repairs etc?

Do you understand all the issues with being a LL, read the sticky above regarding all the things you must do.

You do understand the income will be taxed don't you?

Really more questions than answers for you, read everything you can before buying, write a buisness plan and understand how much you will have in your pocket at the end of each month and decide if you want the hassle.

You need a lot more information!

AdrianC

I guess you're nowhere near that area? So you'll be paying for the property to be managed. Take 10% off the rent. So you're looking at £500 coming in from your £75k. 8%. Lovely. Now take voids off. Maintenance. Add on the legal costs for buying. All the other costs. Ball-ache.

Down to about 5% yet?

Now investigate other ways of earning a 5% return. Or more. With very low risk.

Sure, there's other returns - capital growth on the value of the place. Maybe Great Yarmouth will become the next property hotspot overnight... Or maybe it won't.

Angelicdevil

Something to bear in mind about Great Yarmouth is that it's a deprived area with predominantly seasonal work, so it's unlikely to have a boom in the coming years.

AdrianC

Angelicdevil wrote: »

Something to bear in mind about Great Yarmouth is that it's a deprived area with predominantly seasonal work, so it's unlikely to have a boom in the coming years.

It's safe to say that ANYWHERE you can still buy a three-bed house for £75k is going to be somewhat... let's be diplomatic and say "challenged".

aldershot

you could buy a portfolio of 8-10 different FTSE100 shares to give a gross dividend yield of around 4%. minimal transaction costs (say £120 + 0.5% stamp on the way in, £120 or so on the way out). Liquid at a moments notice if life changes. The capital value may go up or down (like houses) and the income stream could change (like houses) but they will probably give you long term inflation protection. You cannot gear the the portfolio (unlike houses) but that works in both directions of course. I don't think enough people really dig into the equity vs property investment analysis enough.