How To Invest £50,000 In Buy To Let UK Property Investments | This Is How To Invest In Property £50k

– 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)

22 thoughts on “How To Invest £50,000 In Buy To Let UK Property Investments | This Is How To Invest In Property £50k

  • I like the way you ask for a like – no time wasted and very polite. Of course you got one from me, very refreshing approach!

    I also wanted to say thank you for the video, theres a lot of helpful advice especially regarding leveraging the £50,000

    Would you also consider making a similar video (or some advice) for a smaller budget? for example maybe £10,000-£20,000?
    I feel as though this number will be more obtainable by many, especially myself – but is it actually enough?

    Additionally due to my small savings (which I am working on)
    I have often looked further away from home for cheaper areas, but am worried about the need to consistently travel to the property (is this likely?) – perhaps this might make an interesting video idea?
    What is your opinion on investing somewhere past nottingham (I live near south east london), I work a 9-6 job Monday-Friday currently so travel would have to be done on weekends or holiday initially.

    Again thanks for the video and in advance for any advice!

  • I just come across your channel and subscribed you deserve alot more subscribers then you have..I'm 22 year old student and in 18 months will have about 35k goal is to use that money and have a 600 cash flow..and I find buy to let interesting..what would be your advice to buy two 50k properties or to buy one 100k and how much deposit would you put down.. do you think 250 cash flow is achievable with 15k investment..would greatly appreciate if you reply..Thank you

  • So for only £50k you can either buy a shop and covert it into flats, buy two flats and let out as serviced accommodation or buy a small HMO and then turn any of those into a viable profit turning investments.
    Can you please link a example property from rightmove to illustrate?

  • Great content. Thanks. I currently live outside the UK but when I repatriate I’ll definitely give you a ring on how I may use savings to generate passive income, so at least, hopefully, the Mrs can give up her day job.

  • Thank you for the education. Although I’m at 24 properties, two of which I’ve built, I’ve still got a lot to learn because I want to take my business to the next level.
    I’m curious to know why you said perish the thought at converting a property into two flats. I’ve one such property which is absolutely perfect for this conversion. HMO’s are ten a penny in this town and there’s no university so no demand for student lets.
    The property in question requires a full refurbishment (which I have the skills and time to do) I’m just wondering about why this may not be the best strategy.
    Thanks in advance.

  • Splendid tony,
    I thought myself tony you're a great consultant in the property market pleased to make a video about investment in UK property for Government citizenship program to beneficially for a foreigner.

  • Serviced accommodation is oversaturated in the UK cities. Don't get caught out with this, I know many people who spent thousands on decorated flats to serviced accommodation and then barely breaking even after mortgage and rates were paid.

  • I got 7 flats with a 15 k deposit on BTL 60k flats , all bringing in between 350 and 400 a month . But I'm up the northeast where it's much cheaper but still high rent .

  • Your youtube clips are great. It's helping understand what to do and not what to do. Looking at a 3/4 bed house for my first property.. being a live in landlord to cut costs. Fingers crossed it works out, but these clips are great help! Nice to have someone who's English based.

  • Im going nuts looking at houses, im actually sick of looking at them now, think i will just sit on my savings a bit longer….Whoever say's property is easy is lying or way ahead of the game..

  • Hi Tony. Thanks for another interesting and useful video. In a situation where you have sourced a great deal, in terms of a property bmv, how soon do you look to remortgage? Also, when you get a property you believe to be bmv, do you take out a variable rate mortgage as you know you will be looking to remortgage in the not too distant future? In general for your rental properties do you typically go down the route of fixed term, variable or tracker mortgages. I Appreciate you can't give specific financial advice but it would be useful to know what your own experiences and lessons learned have been in this area.

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