After getting married and settling down I have decided that property is the way forwards to make best use of the low interest rates.
At the moment I own (I took out a 60 % LTV mortgage) and live in a 2 bedroom flat with my wife in Birmingham city centre, which we call our home. It could fetch £800pcm furnished, which is nearly twice the present monthly mortgage.
My initial strategy is to save for 10%-15% deposits and buy sub £80k 2-3 bed houses in Birmingham; in areas which ideally attract migrants and where the rental demand gives me £500+pcm. The Tribal website has been a great help in advising how to act as tenants and landlords to sift out where the hot places are for rent, but I could do with a bit more help in this area too.
After reading this site I am now considering renting each room (of 2-3 bed houses) separately but do not know if this complicates things? I am also considering going for non-benefit seeking tenants to keep things more ‘simple’. Ideally I want houses that require little to no work being done on them before placing on the market for rent, as I am not an experienced handyman.
I have an end goal – for my wife and I to retire from our full time day jobs at the age of 50-55 with 2-3 properties (at least), all rented out with mortgages paid off, acting as additions to our company pensions. I plan on doing this by purchasing over the next 7 years. If I need money for the children’s education then I can always sell them.
I did initially want to be focussing our savings on the next family home but I am considering building up my portfolio before we move onto a larger home.
My wife and I could potentially save £1000 min / £1500 max pcm after all expenses, and I have also been considering making over payments on my mortgage but am concerned that it will affect how many properties I can buy.
Thank you all for your time in reading my email. It may seem long but I tried to keep it brief. I would be happy to listen to anyone who can offer some guidance.