Investment Advice £50k cash

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    Investment Advice £50k cash

    Hello Lords,

    I'm new here so please be easy on me.

    For £50k cash, where's the best place to buy to let in the UK with decent yield?

    Or am I dreaming? £50k might not get me anything!

    Is it worth buying a flat on lease to rent out? Or should I be looking for terrace houses to invest in.?

    Thanks

    #2
    Your Q is too vague, if your planning on getting a mortgage, or the total investment is 50k, also how much experience you have in renting, all the compliance aspects of the property, where or not you will live locally to the property or give it to an agent who will manage it which will reduce your yield.

    If 50k is the total investment, in my opinion you are going to be buying a very cheap property in an area where incomes are low, resulting in rents being suppressed, and unlikely to increase in capital value.

    I would do more research in a area you know, rather than area which you don't know.

    Comment


      #3
      Your best rental bet is pick up 5 or 6 lock up garages at auction. You'd be hard pushed to find a flat or house for that money other than in the grim north.

      Comment


        #4
        Originally posted by Section20z View Post
        other than in the grim north.
        Think again..... i live in the grim north and that would make a decent deposit at best.

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          #5
          ash72,

          50k is actually my max budget. I wish I had more. My No. 1 rule is to NEVER borrow money off the bank. Hence, I don't have a credit card and I'll never get a mortgage even if it means I have to live on cold chips.

          I'll just have to keep saving.

          Do you know any auctions that I can browse. May be just may be I might find something within my range.

          Comment


            #6
            ash72,

            I've don't have much experience tbh. I'm looking at places in the Midlands.

            I've looked at prices in Birmingham and houses are expensive.

            I guess being a landlord is exclusively for the rich.

            Comment


              #7
              Taking everything you have an aversion to restricts your market to areas of the U.K. which has property in the very low value spectrum for which there are many. Having had experience of such properties on behalf of a couple of clients, the chances are that the tenant profile is likely to be a Housing Benefit claimant , whilst nothing wrong with the majority of such tenants , there is unfortunately a greater propensity for rental arrears unless you can get the council to agree to pay the rent directly to you( difficult but not impossible) and the neglect of such property results in a continued drain on rental surplus.
              One observation is that many are more aware of their rights and the due processes of legal repossession with an almost direct hot line to the Citizens Advice Bureau who seem to think Landlords are a version of the antichrist .So whilst the perceived yield might be attractive , the reality can sometimes be entirely different.
              Best of luck in you pursuit.

              Comment


                #8
                Originally posted by LandaLorda View Post
                I've looked at prices in Birmingham and houses are expensive.

                I guess being a landlord is exclusively for the rich.
                Or people who are prepared to borrow.
                Property investment is unusual, because it’s about the only investment where the man in the street can borrow against their investment asset upfront.

                Most landlords aren’t rich, they either inherit a property, have an extra place to live because of a new relationship or borrow to buy.

                Nit wanting to borrow money is laudable, but it probably means being a landlord isn’t an option without a lot more saving.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  So you are going to save and save and save, then blow it ALL on a house, and be poor ?
                  Lets say £ 130,000 with rent of £ 750 per month, less repairs, evictions, unforseen disasters ( your drains and pipework could be 100 yraes old, and don't lat for ever..)

                  House prices are double what they should be.

                  And to get your money back ( which is when you start making a profit when you have got your £ 130,000 back from the rent ) will, at £ 750 per month, will take you about 15 years.+ longer when you need to replace that 100 year old roof.

                  Why do you want to make yourself poor for 15 years ?
                  And remember, you only have ONE customer a year. Not a very good business plan, is it ?

                  I started a back bedroom business for an initial £ 300, and expanded from the profits immediately gained, made profit, and sold business after 7 years to competitors, who shut it down as I under cut every last one of them, as they could not afford to have me around. Bloody hard work, but I KEPT my capital.





                  Comment


                    #10
                    ram,

                    I guess you're totally right. A friend of mine make £300 a month selling on Amazon with only a £5k investment. Thought £300 isn't massive but considering his investment, I'd say its amazing.

                    I'll definitely have to be more brainy about my investment.

                    ​​​​​​​I just hope things get more affordable. Houses are just so bloody expensive.

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                      #11
                      Glad to see you have changed your mind, or should I say - seen the light.

                      Even now, I still think that what I am doing is just not worth the hassle.



                      Comment


                        #12
                        Originally posted by LandaLorda View Post
                        ash72,

                        I've don't have much experience tbh. I'm looking at places in the Midlands.

                        I've looked at prices in Birmingham and houses are expensive.

                        I guess being a landlord is exclusively for the rich.
                        If you make a google search for " Birmingham property auctions" and look for rightmove website , you may find properties at £50K - £60K. level. I would stay away from student hostel accommodation which are difficult to sell.

                        Comment


                          #13
                          Originally posted by Gordon999 View Post

                          If you make a google search for " Birmingham property auctions" and look for rightmove website , you may find properties at £50K - £60K. level. I would stay away from student hostel accommodation which are difficult to sell.
                          Thanks so much

                          Comment


                            #14
                            LandaLorda.
                            If you buy at auctions, expect to pay thousands to either repair / totaly refurbish etc

                            Houses at auctions will not be "in exceptional condition" to let out.
                            unless you have at least 10 to £20,000 in reserve, do NOT blow all your cash then have nothing to refurbish with.
                            AND all the while you will be paying council tax, gas and electric, and NO money coming in.

                            My last refurbish cost £ 20000, ( new boiler, windows, floorboards where shower curtains were always outside the bath, not inside. / complete re-hab ) House was criminally cheap ( which is why I bought it ).

                            Please don't say I guess being a landlord is exclusively for the rich.
                            People buy houses to live in. They are not classed as rich just because they get a mortgage for a £ 130,000 house.





                            Comment


                              #15
                              I'll confess, I've had fantasies of purchasing some insanely cheap property that you can see displayed on an auction website. Of course, there must be a reason you can't see pictures of the inside...
                              Totally new to all of this. Just here to ask lots and lots of questions!

                              Comment

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