Recently I gave 21 year old student Tom, from Burnley, a call to shed some light on how he can easily get on the property ladder with a small capital of £8,000. Tom knew he wanted to invest his savings and build a property portfolio, but was unsure on the topics of House In Multiple Occupancy (HMO’s) and Rent to Rent. Whilst at University, he has been facilitating his time with networking and helping out local investors. However, Tom was still concerned about how to get started on the property ladder.
I advised Tom to follow 2 easy steps on how to BUY your first property which anyone can achieve with a small starting capital.
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Look in cheap areas to buy a property in the U.K, for example, Barnsley. The house prices here start at £45,000 and the demand is still constant. Samuel advises Tom to keep saving £500 p.c.m and to buy a 2 bed property that is in good condition in the next few weeks and rent it out. By doing this, Tom can ensure he is creating a small monthly income, gaining capital appreciation for when the house goes up in value and put himself in a good position for buying future properties and networking.
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Start sourcing the type of property that you would like in 12 months time NOW. For example, a 4 bedroom HMO. Find them, package it and pass them onto investors and charge a fee. This can be anything from £2,000-3,000 per month, aim for 1-2 deals per month and invest the money you make back into property. Well done, you are now a property sourcing expert in Barnsley! (or wherever you choose to start!)
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