In a recent video for my YouTube channel, I explained how to buy a house as a teenager. In the video, I toured the property of one of my students, who bought her first house with her partner when she was just 19. They only had to put down a £6,000 deposit because they secured a 95% mortgage. They refurbished the property, refinanced it and are now making £1,000 per month profit from it! Watch the full video (above) until the end to see the exact steps they followed to do it!
In this article, I will explain how to buy a house as a teenager in 3 easy steps. Of course, you don’t have to be a teenager to use this strategy. This strategy is great for anyone that doesn’t have much starting capital. The process is called ‘residential to buy-to-let’ and many of my students have used it to get on the property ladder.
Step 1. Buy A House On A Residential Mortgage
The first step in the process is to buy a property to live in on a residential mortgage. Residential mortgages are based on your income. Your income could be from a job, or you could start a high cash-flowing business such as deal sourcing.
If you are a first-time buyer, you won’t need to pay stamp duty. You will also be able to get a mortgage of up to 95% depending on your income and other factors. If you were buying a buy-to-let property, you would likely only be able to get a 75% mortgage. You will need to be at least 18 years old to get a mortgage. If you are younger, you may need to buy the property in a family members name. You should pick a rundown property that you can do a light refurbishment on and push up the value.
How To Buy A House As A Teenager: Step 2. Refurbish
The next step is to move in to the property and start to refurbish it. As a homeowner, you can get a loan to do home improvements. Focus on areas that can drive up the value of the property while spending the least amount of money possible. Use formulas rather than feelings. Although you are currently living in the property, that isn’t the end goal. Do as much of the work yourself to keep costs low.
The next step is moving the property off a residential mortgage and on to a buy-to-let mortgage. This is the part where you start to make money!
Step. 3 Refinance On A Buy-To-Let Mortgage
If you have focused on the correct areas to improve and have chosen the right property, you should have forced the value of the property up. If you execute the residential to buy-to-let strategy well, you should be able to get a buy-to-let mortgage based on the new, much higher, value of the property. This new mortgage should cover your initial purchase price plus the cost of the refurbishment. That means you can pull all your money out and keep the house!
You can then rent the property out and keep the profits! A bonus tip is, instead of refinancing on to a buy-to-let mortgage, refinance on to a furnished holiday let mortgage. This allows you to rent your property out on platforms such as Airbnb and Booking.com for short stay lets, which are a lot more profitable!
Learn How To Buy A House As A Teenager
Do you want to learn how to buy a house as a teenager? Why not learn from a property expert? Join me at my next training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
