PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Getting Started in Property

Options
JakeHyde
JakeHyde Posts: 93 Forumite
Third Anniversary 10 Posts Name Dropper
edited 29 February 2024 at 11:27PM in House buying, renting & selling
Hi MSExperts,

Firstly, I hope I'm posting in the right section. I really want to get into property and I'm trying to take my first steps. Unfortunately I lost my mum over a year ago so I have some money to invest. 

I guess I need to buy my own home first to make good use of that first time buyers stamp duty relief, before looking to buy any rental properties, right?

Has anyone had any real world experience with the likes of Touchstone Education. I see a lot of these property gurus online, and I get strong snake oil salesman vibes from all of them.

I'd love to learn about setting up a Ltd Company, and avoiding Section 24 rules. etc.
«13

Comments

  • kipperman
    kipperman Posts: 293 Forumite
    Part of the Furniture 100 Posts Photogenic Name Dropper
    My first move would be to search this forum for the large number of posts where things have gone wrong for Landlords and ask myself whether the returns I might get would be worth it. 

    Buying a first home is probably a sensible move, but again you don't need to pay for any advice from property gurus to do that. The good news though is that you are asking questions and appear to have a healthy cynicism for said gurus. If making money from property is as easy as they claim, why are they not doing this rather than selling you their "knowledge"?
  • RHemmings
    RHemmings Posts: 4,894 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 1 March 2024 at 10:51AM
    JakeHyde said:
    Hi MSExperts,

    Firstly, I hope I'm posting in the right section. I really want to get into property and I'm trying to take my first steps. Unfortunately I lost my mum over a year ago so I have some money to invest. 

    I guess I need to buy my own home first to make good use of that first time buyers stamp duty relief, before looking to buy any rental properties, right?

    Has anyone had any real world experience with the likes of Touchstone Education. I see a lot of these property gurus online, and I get strong snake oil salesman vibes from all of them.

    I'd love to learn about setting up a Ltd Company, and avoiding Section 24 rules. etc.
    How expensive a property are you looking to buy? Unless I misunderstand things, I think that my first time buyer relief from stamp duty saved me £15. 

    I'm in a similar situation to you, except that I've done the buy my own house bit. I considered buying a house to be my son's and renting it out until he wants it. But, the renting out bit is quite complicated, as many threads on here show. 
  • theartfullodger
    theartfullodger Posts: 15,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 1 March 2024 at 10:52AM
    Most years I make money from B2L.  But not always.

    Do you have the financial AND emotional reserves to cope with the tenant-from-hell (or agent-from..) who doesn't pay you for 7 months whilst you pay mortgage, legal costs and repairs***??  Phone calls Saturday 9:30 pm about the toilet leak? (Tenant is entitled to your name & ACTUAL address.

    *** Repairs?? If landlord isn't fixing things who do you think judge at court eviction hearing will side with??

    I've just persuaded my agent to start paying me the rent they've had since last September......
  • Albermarle
    Albermarle Posts: 27,755 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    JakeHyde said:
    Hi MSExperts,

    Firstly, I hope I'm posting in the right section. I really want to get into property and I'm trying to take my first steps. Unfortunately I lost my mum over a year ago so I have some money to invest. 

    I guess I need to buy my own home first to make good use of that first time buyers stamp duty relief, before looking to buy any rental properties, right?

    Has anyone had any real world experience with the likes of Touchstone Education. I see a lot of these property gurus online, and I get strong snake oil salesman vibes from all of them.

    I'd love to learn about setting up a Ltd Company, and avoiding Section 24 rules. etc.
    After  buying your own home, you may well find it easier to invest your money in a pension, or Stocks and shares ISA's.
    This will take a minimal amount of your time up sat in front of a computer, as opposed to the hard work of dealing with rental properties.
    Especially if you are not an experienced landlord and are not a good handyman/builder/ DIYer
  • Schwarzwald
    Schwarzwald Posts: 639 Forumite
    500 Posts Third Anniversary Name Dropper
    before taking your first steps getting into property .... the real question that determines a lot of follow ups is .... WHY do you want to get into property?

    I hear so many friends and family speaking about "wanting to 
    get into property" investing thousands of their savings plus borrowing without even being clear around the WHY, WHY, WHY ....
  • RHemmings
    RHemmings Posts: 4,894 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    before taking your first steps getting into property .... the real question that determines a lot of follow ups is .... WHY do you want to get into property?

    I hear so many friends and family speaking about "wanting to get into property" investing thousands of their savings plus borrowing without even being clear around the WHY, WHY, WHY ....
    We've had decades of media portraying property investing as the golden money tree. I'm not surprised if there are many people wanting to get into it. Unfortunately, media does have an influence. 

    I'm not the OP, but in my case I was considering a single property intended to be gifted to my son, and one part of that was as insurance to make sure that he can get onto the property ladder without needing a mortgage. The renting it out bit was meant to enable the property to wash its own face, rather than be a huge profit-making venture. Rental income would allow maintenance and hopefully improvement of the property over time. 
  • Albermarle
    Albermarle Posts: 27,755 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    before taking your first steps getting into property .... the real question that determines a lot of follow ups is .... WHY do you want to get into property?

    I hear so many friends and family speaking about "wanting to get into property" investing thousands of their savings plus borrowing without even being clear around the WHY, WHY, WHY ....
    I think it is because people feel they understand property. They have their own home, often that will have increased in value significantly. They will have ideas about design and improvements. They will see friends and relatives improving their homes and increasing value, so it all seems rather interesting and exciting. Plus as the previous poster says lots of property p*rn programmes on the TV .
    Of course the reality of running a BTL portfolio or property development is somewhat different .

    On the other hand investments, pensions etc are scary, and/or a mystery and/or seen as risky . 
  • Bigphil1474
    Bigphil1474 Posts: 3,529 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    OP, could you look at buying, improving, then selling houses? The market doesn't seem to have picked up too much recently, so there'll be bargains to be had. Spend a bit of time fixing them up, and by then the market may have picked up again, and you make a tidy profit. If you know what you are doing, it's probably less hassle than becoming a landlord. Having said that, a mate of mine has multiple properties, buys local cheap houses, fixes them up, and rents them out, and he doesn't get too much hassle.
  • Schwarzwald
    Schwarzwald Posts: 639 Forumite
    500 Posts Third Anniversary Name Dropper
    before taking your first steps getting into property .... the real question that determines a lot of follow ups is .... WHY do you want to get into property?

    I hear so many friends and family speaking about "wanting to get into property" investing thousands of their savings plus borrowing without even being clear around the WHY, WHY, WHY ....
    I think it is because people feel they understand property. They have their own home, often that will have increased in value significantly. They will have ideas about design and improvements. They will see friends and relatives improving their homes and increasing value, so it all seems rather interesting and exciting. Plus as the previous poster says lots of property p*rn programmes on the TV .
    Of course the reality of running a BTL portfolio or property development is somewhat different .

    On the other hand investments, pensions etc are scary, and/or a mystery and/or seen as risky . 
    that is the point i am getting to, they "feel" things.
    Business and making money is not about "feelings".
    and making money in property isnt as simple as portrayed in "Homes under the Hammer".
    if you want to get into property in oder to make money, your benchmark is at least 10% yield that you can get by simply putting your money into the S&P 500, without taxes if you do it via ISA.
    so how do you outperform a 10% yield (potentially net of taxes) in property?
    it's not easy.
    if you compound at 10% p.a. in S&P 500 you double your money every 7 years.
    without any tenant calling you up on the weekend.
    without having to coordinate builders.
    without the risk of getting fined for forgetting to send EPC certificates.

    if you want to get into property so you can tell your friends that you made it in life that's also fine, just be aware that it could be a quite costly vanity project.
  • Albermarle
    Albermarle Posts: 27,755 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    before taking your first steps getting into property .... the real question that determines a lot of follow ups is .... WHY do you want to get into property?

    I hear so many friends and family speaking about "wanting to get into property" investing thousands of their savings plus borrowing without even being clear around the WHY, WHY, WHY ....
    I think it is because people feel they understand property. They have their own home, often that will have increased in value significantly. They will have ideas about design and improvements. They will see friends and relatives improving their homes and increasing value, so it all seems rather interesting and exciting. Plus as the previous poster says lots of property p*rn programmes on the TV .
    Of course the reality of running a BTL portfolio or property development is somewhat different .

    On the other hand investments, pensions etc are scary, and/or a mystery and/or seen as risky . 
    that is the point i am getting to, they "feel" things.
    Business and making money is not about "feelings".
    and making money in property isnt as simple as portrayed in "Homes under the Hammer".
    if you want to get into property in oder to make money, your benchmark is at least 10% yield that you can get by simply putting your money into the S&P 500, without taxes if you do it via ISA.
    so how do you outperform a 10% yield (potentially net of taxes) in property?
    it's not easy.
    if you compound at 10% p.a. in S&P 500 you double your money every 7 years.
    without any tenant calling you up on the weekend.
    without having to coordinate builders.
    without the risk of getting fined for forgetting to send EPC certificates.

    if you want to get into property so you can tell your friends that you made it in life that's also fine, just be aware that it could be a quite costly vanity project.
    I would agree with your post but I think you have to caveat the comment in bold.
    Investing solely in one market index would not be a normal or recommended strategy for any investor. 
    A more regular investment would be a global equity index, which should still return 7 or 8% over the long term, but with the possibility of periods of years of losses. 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.