Is Investing in Property with only £20,000 Realistic?

1. £20000 to Invest in Property Is it realistic to invest in property with just 20,000 pounds? Yes, it certainly is. It’s dependent on a few things though. It’s dependent, certainly, on the location, on the type of property you’re looking for and on the strategy that you’re going to utilise. For example, with 20,000 pounds to invest in property you’re probably not going to go straight into investing in a development property in the center of London worth two million pounds. You could however, with a twenty thousand pound deposit, buy a very good rental property or renovation project in the North West. It depends on your criteria, your plans and your aims. See full transcript http://propertyinvestmentsuk.co.uk/20000-to-invest-in-property-leasehold/ 2/Leasehold Property There's one primary difference between leasehold property and freehold property and that's service charges. Some city center apartments can have very high leasehold charges. They might have a gym or a lift. Some even have concierges. These things can really ramp up the cost of owning that property. In some cases you can even find that these charges can give the property a negative cash flow. Another thing to consider with leasehold property is ground rent. So, take for example an ex Council apartment building. In cases such as these the ground rent will probably be very low. We have one where the ground rent is about 10 pounds a year. We also have other leasehold property where the ground rent is a lot higher. For some it's a couple of hundred pounds a year. Remember, these examples are from our own portfolio which is focussed on Manchester and the North West. For different areas of the UK, say Brentwood in Essex, or London, or other parts of the South the ground rent is going to be much higher. With leasehold property another thing to consider before you invest is the term of lease (meaning the length of the lease). This is very important when it comes to buying, selling, or even refinancing leasehold property. If there is a short length of time left on the lease then you will run into difficulty when it comes to reselling. Finally with leasehold property, not all leases will allow you to rent the property. There can be restrictions that you need to know about before you invest in property. It's important to ask your solicitor to check through the lease documents to see if there are any covenants or restrictions which will stop you doing what you want to do with that property. So, whether it's a renovation project, or an extension, or you simply want rent that property out you need to check if there are any restrictions attached. Goal Setting http://propertyinvestmentsuk.co.uk/5-steps-property-success-goal-setting/ Retire Early With The Buy Refurbish Refinance Strategy http://propertyinvestmentsuk.co.uk/retire-early-property-using-buy-refurbish-refinance-strategy/ Build a Pension Plan with Vanilla Buy To Let http://propertyinvestmentsuk.co.uk/property-pension-plan-vanilla-buy-to-let/ How to Get Started in the Property Business http://propertyinvestmentsuk.co.uk/how-to-start-a-property-business/ Our Live Property Deals http://propertyinvestmentsuk.co.uk/live-property-deals/ For More Information Visit www.propertyinvestmentsuk.co.uk

Comments

1. Hi Robert, do you think it is still profitable to invest in property with the new UK tax laws and stamp duty?