Is it wise for me to buy?

Vet

Hello!
Background:

• 26 years old - North of England - Decent job - Earning approx £40-48k p/a (depending on bonuses) with accommodation included
• Housing + bills covered by work except a very small part payment of £120/month
• Lifestyle allows for saving of approx £1500/month
• £10k invested Vanguard LS80 + LS100, £15k in Cash LISA, £34k marcus
• Pension contributions at employers max
• No dependents
• Not likely to be moving jobs in the next 5 years and pay rises likely to be around £2-4k/year

I've never owned a house so initially I started saving in a Cash LISA to put down a deposit for a house. Recently, i've started looking into buying a property to let it out. 
My question is: Is it worth giving up the no stamp duty on a first house to start investing in smaller properties to let out?
If I was to do this, my initial plan was to buy smaller properties i.e. 1 bedroom flats to rent out, whilst still working full time to pay off any mortgage.
The Cash LISA would likely be swapped for a S & S LISA if this was the case.
Hope this is enough information! All help appreciated.

tom9980

Do you get paid more if you don't take up the free accommodation?

Hopefully you are salary sacrificing below higher rate tax.

Your only 26 you may want to not be tied down at this stage of life. Do you have a partner again being tied to a house can be an issue so it may be better to save for the forever house and first time buyer relief could save you a lot.

being a landlord successfully requires lots of hard work, to make it profitable you need to do as much of the work as you can yourself. The sticky at the top of the forum is well worth a read. you should learn about s24 tax changes rental income would probably push you into higher tax rates killing your profit margin.

personally you seem well set to just continue as you are until you have a partner, and are sure about job long term, you will have a huge deposit by that point.

Vet

tom9980 said:

Do you get paid more if you don't take up the free accommodation?

Hopefully you are salary sacrificing below higher rate tax.

Your only 26 you may want to not be tied down at this stage of life. Do you have a partner again being tied to a house can be an issue so it may be better to save for the forever house and first time buyer relief could save you a lot.

being a landlord successfully requires lots of hard work, to make it profitable you need to do as much of the work as you can yourself. The sticky at the top of the forum is well worth a read. you should learn about s24 tax changes rental income would probably push you into higher tax rates killing your profit margin.

personally you seem well set to just continue as you are until you have a partner, and are sure about job long term, you will have a huge deposit by that point.

You get a further £4000 added to your salary if you give up the accomodation.
Not a higher rate tax payer (yet!)
I have a partner, we both work for the same company and in very similar positions!

I appreciate the input! Thank you!

[Deleted User]

You really need to put together a budget or business plan to see if building a portfolio of properties outweighs not only losing your FTB SDLT relief but having to pay the higher rate of SDLT when you finally do buy a home for yourself. One thing I would say is that small one bedroom properties would not be my top choice of investment property. Unless of course you're aiming for the bottom of the rental market with tenants claiming Housing Benefit/Universal Credit who might be subject to the under-occupancy penalty and are in need of one bedroom properties but that in itself carries a lot of risk since the rental income would be dependent on the whims of the government. 

Vet

@Lover_of_Lycra You're right. Perhaps I need to rethink which type of properties to look for. Housing in this region of England is fairly well priced anyway. Thank you!