Transcription
If you've got 50k saved to buy your first house, don't buy a 400-500,000 house. Do this instead.
So you've got 50k. You can look for a house that's worth about £100,000 now. But the reason it's worth a h 100red is cuz it's in a real rundown state. This will mean your stamp duty cuz your first house is going to be zero cuz you're buying it for yourself. Legal fees of maybe £2,000. And because it's a residential property, your deposit, we're going to work on 10%, but it could be even less. So you're looking at a £10,000 deposit.
Your total money in is £42,000. Why is that? That should be 12. The reason it's £42,000 is you're going to need to refurb the property. So, you're going to want to spend about 30 grand in this case refurbing the property. Now, what that will do, it will force up the value of the property. So, your £100,000 house now that it's been fully refurbed is now a £200,000 house.
At the moment, you've got a 90 grand mortgage. When it's worth £200,000, you're going to get a new mortgage of 75% cuz you're going to put it on a blet mortgage. Now, this will pay you back all the money that you put in. It will pay off the 90 grand and leave you with £60,000 and a free buy to let property worth £100. You're going to do it again. Rinse and repeat. This say get