What to do with £130k?!

jazzfriend100

I have inherited between 125k-135k. I am looking to BTL and considering the best investment strategy, should I just buy one property? or leverage the money to purchase 2 properties?

Here is some context of my situation:

-First time buyer
-27 yrs old
-Low-income (high rental yields are attractive over long term gains at this stage to provide income)
-Plan on travelling for a number of years so will NOT require a property to live in (no rent to pay either)
-£10,000 savings

Can I realistically expect 8% rental yield in areas like Nottingham as data suggests?

I have seen some lenders will provide BTL mortgages with no minimum income (is this feasible or a scam?!)

Is there a mid-long term strategy I could consider, ie releasing funds when there will be enough for a new BTL (i'm cautious of purchasing with more than 60% LTV however). But have a long term partner who may like to contribute.

What experience do people of have of agents managing properties successfully and what can I expect to be deducted from monthly income?/ Any other fees...?

Am I way off the mark in general?!

I hope my terminology is correct, this has been a learning curve!
Many thanks

Davesnave

Off to fetch some popcorn!

csgohan4

have a look at BTL on the search function and you will see BTL are not really good investment vehicles at present, are you aware of the legal and tax implications?


as with any investment, what's the business plan you have drawn up? don't make up fairy tale figures of 8%, have you researched the area, the rental yields, over heads, e.t.c?

https://forums.moneysavingexpert.com/discussion/5983050/taking-tenant-to-small-claims-court

https://forums.moneysavingexpert.com/discussion/5956212/need-advice-after-evicted-a-tenant

https://forums.moneysavingexpert.com/discussion/5896992/evicting-tenants-via-court-and-bailiffs

jazzfriend100

Thank you for your reply.
These horror stories certainly emphasise the importance on finding decent tenants, i suppose this is an inherent, unavoidable risk.
I have been looking at either 2-3 bedroom houses in NG7 which seem to yield £700-£1000 rent pm. I'm simply comparing properties in the RENT and BUY sections of rightmove, zoopla, and looking for similar properties (is this comparison the only means of establishing projected yield?). Similar looking results for apartments in NG1 however there is then the cost of ground rent and service charges (perhaps more reliable tenants though?).

csgohan4

jazzfriend100 wrote: »

Thank you for your reply.
These horror stories certainly emphasise the importance on finding decent tenants, i suppose this is an inherent, unavoidable risk.
I have been looking at either 2-3 bedroom houses in NG7 which seem to yield £700-£1000 rent pm. I'm simply comparing properties in the RENT and BUY sections of rightmove, zoopla, and looking for similar properties (is this comparison the only means of establishing projected yield?). Similar looking results for apartments in NG1 however there is then the cost of ground rent and service charges (perhaps more reliable tenants though?).

There are better long term investment vehicles, stocks and shares ISA, bonds e.t.c

get an IFA and discuss your options

AdrianC

The one thing you've not mentioned is... buy a place to live in.

jazzfriend100

AdrianC wrote: »

The one thing you've not mentioned is... buy a place to live in.

VAN conversion in progress :P

csgohan4

jazzfriend100 wrote: »

VAN conversion in progress :P

Why not save the money to buy your house in future and put in a cash isa for the time being

Wanderingpomm

Most lenders won’t give you a BTL if you don’t already own a home

dimbo61

Most BTL lenders want £25K minimum income.
They like you to own your own home or you might move into the BTL property.
They like you to have history, had a mortgage, regular job etc

jazzfriend100

dimbo61 wrote: »

Most BTL lenders want £25K minimum income.
They like you to own your own home or you might move into the BTL property.
They like you to have history, had a mortgage, regular job etc

yes this was the impression I had initially. However, having spoken to a broker on the phone he reckoned with a down payment as substantial as 65k he could find a mortgage provider for the same amount. Is this BS?! It was this conversation that has led me to these enquiries, otherwise I would pursue a single property.