- Today let's talk about how to invest £50,000
in the buy to let UK property market.
What sort of things should you be considering?
And what specifically should you be investing in?
(upbeat jazz music)
Hi my name's Tony Law from Your First Four Houses,
and I teach people how to build a small property portfolio
that generates a great income for them.
So they can give up their day job,
if they wish because they're now financially free.
If this is your first time here,
be sure to subscribe to the channel
and click that bell notification icon.
So that you don't miss out on any of the free content
that I give you each and every week.
So let's just very quickly set this up.
Let's imagine that you've got £50,000
to invest in property with little chance
of getting any more money at least in the short term.
And you want to build a small but profitable portfolio
that can replace your job based income.
And you want to do this as quickly as possible.
Well the first thing I have to say
is that obviously that £50,000 needs
to work really, really hard for you.
So let me give you a bunch of ideas
that I'm sure are gonna help.
Most of which I've actually done myself.
So the first of these is to buy property,
substantially below market value and then refinance.
And this is exactly how I started off.
The truth is I didn't believe
that there were any such deals like this out there.
And anybody that knows me knows that that's the case,
but I've now done it many, many times.
The key is to get really good
at finding truly motivated sellers.
And please believe me when I say,
these types of deals are out there.
Second is to add real value, and then refinance.
And so here I'm not talking about just a lick of paint.
So maybe you buy somewhere at foremarket price
or ideally get a little bit of a discount on it,
and then you add real tangible value to the property.
I know I talk about that a lot.
So for example maybe you go
for planning to build in the garden.
You didn't necessarily build in the garden,
you just get the planning.
That alone will add substantial value,
and I've certainly done that.
Or maybe you reconfigure the internal layout,
and get an extra bedroom or two in there.
Or maybe you do a loft or garage conversion,
and in some areas this can add real value.
Or maybe that you convert the house
into two flats, perish the thought etc., etc., etc.
Once this work is complete you then refinance
and pull most or all of your money back out of the deal.
So once again you can use that money
to go and buy the next property.
Maybe yours is a rent to rent strategy.
This can really replace your income quickly.
If an average rent to rent costs say,
five to ten thousand pounds to set it all up
once you've included everything.
You could maybe get five
to ten properties for £50,000, couldn't you.
And each one, and if each one cash flows,
say £500 to a £1,000 per calendar month.
Well let's be really honest,
that's more than enough to replace the average UK income.
Perhaps you buy a flat or a house,
and run it as serviced accommodation.
£50,000 is more than enough to get you one
or maybe even two flats in some areas.
And honestly the return on investment
on service accommodation can be absolutely huge.
Also if it's outside of your area,
could you maybe use this as an occasional kind
of holiday home or escape for yourselves?
By the way if your finding this video helpful,
I would love it you take a moment just
to click on that like button.
It really helps me if that's okay.
You could maybe buy smaller HMO,
say a four to six bed type place.
Obviously where your wanting to invest
will have a huge impact on on what you can actually afford.
But in some areas you can get a huge lump of a property
and make a really good cash flow
if your starting off with an investment of £50,000.
Could you use property options
to control property rather than buying them?
Honestly in the current market,
options really should be a tool
that you use wherever possible.
And £50,000 can potentially get you
a lot of property options depending on
what you're actually looking at.
Will they work in all scenarios?
Of course they won't, but honestly they will work in some.
Could you buy garages and rent them out
over the long or short term?
Now I know this one is a little bit of an unusual one.
I was sitting down with a really
successful property investor recently,
and we sort of chatting things over.
And they were talking all
about the huge return on investment
that they were getting on the garages
that they were renting out.
And in some areas you can play the long game here.
And maybe with those garages,
that you've just gone and bought,
what you would get for the kind of investment amount
that we're talking about here.
Maybe you go for a change of use.
And actually get some planning on there.
If you're renting them out,
and getting a great income from them.
Does it matter if it takes you one or two years
to get planning to maybe build some flats
or a house or two?
Now I'm not saying this strategy
is for everyone, but honestly if you got £50,000
to invest it's at least worth exploring this idea.
Why not buy a shop and convert it into residential.
Have you seen how many empty shops
there are out there at the moment?
Let's be honest the high street is really struggling.
Obviously most of these won't work well
to convert that shop into residential.
But if you think about it,
if you're driving around you'll notice
that some shops are clearly or were clearly houses.
They've been converted into a shop.
Might it be worth looking at buying some
of these and converting them back into residential.
And with a commercial purchase like
this you'll usually get a lot more square meterage
for your £50,000 investment.
Plus there were some really big tax advantages.
But obviously speak to your tax advisor
or accountant regarding these.
Could you buy somewhere to live in, and develop over time?
So here we really are playing the longer game.
Now I know what you're thinking.
Our own homes are not supposed
to be viewed as an asset are they?
But I've never really understood this
if I'm being honest with you.
I've bought houses over the years,
and I've lived in them whilst adding real tangible value.
And I've made some serious financial gains.
Sure sometimes it can be a bit of a challenge
to live in a place while your actually doing it up,
but when you're just starting out,
why not do this, why not give this a go.
So maybe you buy somewhere with a really big garden,
and you get planning for a house,
again I've certainly done that.
Or maybe you add a bedroom or two, or you convert the loft.
I know this isn't for everyone,
but if you have an understanding partner and that's crucial.
There are some really big tax advantages for doing so.
Plus it also means that you can kind of,
you can kind of leap up the property ladder
rather than taking slightly smaller incremental steps.
Honestly £50,000 is more than enough to get you going.
It's more than enough to build a property portfolio
that can cashflow and give you a longer term passive income.
But if you are wanting to build
that long term passive income.
You've got to invest smartly, otherwise £50,000 is gone.
The last thing that you want to do,
can I respectfully suggest, is to buy a property
that doesn't give you a great cash flow.
And ties up all of your money
for years, and years, and years.
Can I respectfully suggest
that's not a particularly smart way to invest.
In my online property master class
I cover all of these subjects and so much more.
Including how to set yourself up properly as a business.
How to find incredible deals.
How to negotiate fantastic win-win solutions with sellers.
How to get estate agents to bring you discounted properties.
And even how to fund everything.
And so if you'd like to book a 10 minute phone call with me
to find out if this course could work for you.
Simply click the link here or
in the subscription box below to book a time slot.
(upbeat jazz music)