Sweetsunrise
Member
Hi! I hope you’re well. I grilled my dad today, I told him a friend asked me these questions for him, and he offered to give her a phone call to discuss more (but I couldn’t say it was a tattle friend haha), I told him she wasn’t comfortable lol. So these were his answers to everything, sorry it is in note form, I was furiously typing away as he was speaking fast! I hope this helps you
1. I would do two things - 1. target properties in two areas (up and coming areas and areas that will be popular in 5-10 years). NOT in a year, because then everyone will know about them and get into them fast, so always go long term. If you do good research for the next 5-10 years you will capitalise on the increase in value better if it’s long term and less people know about it. 2. Invest in areas with high employment because professionals will always need accommodation. Don’t invest in flats. Do free hold, not long lease hold (I have no clue what any of this means, maybe you will
)
2. Houses, but depends on affordability. Preferably houses that can be split into flats
3. It depends what you are after. Remember residential mortgages are typically 10%, commercial mortgages need to be at least 25%, sometimes higher. Your investment property should stand on its own two feet, because the bank will do a stress test to check your income against your mortgage and you must pass a stress test of 170%. Example: if your mortgage is £100 your rent should be £170
4. Not typically, go for houses
5. (Sorry I can’t remember if he answered this or not or if he went off on a tangent!). But don’t put in too much deposit, because it reduces the amount you can put into another house, so as little as you can get away with.
6. Who knows? Mortgage rates go up and down, the longer the fix generally the better, more assurity
7. Near city centre because the city centre will always have major employers. Or near hospitals, because there are a lot of people with job security and it’s good for doctors, nurses etc, who need accommodation close by
8. Look at your target market to establish whether a it’s a good property - I.e if it’s a student town, the number of bedrooms is crucial. One important thing to look at: auction websites, look at the guides, what’s on the market and what they typically go for to see if it’s good value. (He mentioned some sites I think one called Allsop auctions for commercial properties)
9. (I think he was confused by this question haha) save as much as you can, not for retirement just yet if you are young but for a deposit for your first house, that’s the important thing
10. No, it’s high risk. The ones that are guaranteed are very slow return
11. Index funds, as they will always grow. Don’t invest your money into anything you haven’t researched. (Honestly he never talks about stocks so I’m assuming he doesn’t know as much about them as property, and doesn’t invest in them)
12. Not sure sorry I’m not a big reader
13. Research, get advice and be a risk taker, you will always learn something. The market is very high right now, wait 6 months, there’s an expected recession. In the meantime research where to buy and what to buy. Commuter rail lines are good investments for professionals, also high speed network areas - prices always go up here. Check your local authority for what license you need e.g. HMO license - selective, additional, mandatory. Good luck
That’s everything! I hope that’s okay
He was happy I’m so interested now and I’m happy I had the chance to sit down and talk to him and he really opened up about everything, so thank you.
He lectured me a little but honestly it was quite a bonding experience, he’s always so busy and feels like I don’t take this seriously or I don’t care, but I’m glad I talked to him tonight. He came from nothing, my grandad immigrated here and worked in a factory, supporting 5 children. As cliche as it sounds, he’s my hero...so thank you for making me sit down and speak to him
1. I would do two things - 1. target properties in two areas (up and coming areas and areas that will be popular in 5-10 years). NOT in a year, because then everyone will know about them and get into them fast, so always go long term. If you do good research for the next 5-10 years you will capitalise on the increase in value better if it’s long term and less people know about it. 2. Invest in areas with high employment because professionals will always need accommodation. Don’t invest in flats. Do free hold, not long lease hold (I have no clue what any of this means, maybe you will
)2. Houses, but depends on affordability. Preferably houses that can be split into flats
3. It depends what you are after. Remember residential mortgages are typically 10%, commercial mortgages need to be at least 25%, sometimes higher. Your investment property should stand on its own two feet, because the bank will do a stress test to check your income against your mortgage and you must pass a stress test of 170%. Example: if your mortgage is £100 your rent should be £170
4. Not typically, go for houses
5. (Sorry I can’t remember if he answered this or not or if he went off on a tangent!). But don’t put in too much deposit, because it reduces the amount you can put into another house, so as little as you can get away with.
6. Who knows? Mortgage rates go up and down, the longer the fix generally the better, more assurity
7. Near city centre because the city centre will always have major employers. Or near hospitals, because there are a lot of people with job security and it’s good for doctors, nurses etc, who need accommodation close by
8. Look at your target market to establish whether a it’s a good property - I.e if it’s a student town, the number of bedrooms is crucial. One important thing to look at: auction websites, look at the guides, what’s on the market and what they typically go for to see if it’s good value. (He mentioned some sites I think one called Allsop auctions for commercial properties)
9. (I think he was confused by this question haha) save as much as you can, not for retirement just yet if you are young but for a deposit for your first house, that’s the important thing
10. No, it’s high risk. The ones that are guaranteed are very slow return
11. Index funds, as they will always grow. Don’t invest your money into anything you haven’t researched. (Honestly he never talks about stocks so I’m assuming he doesn’t know as much about them as property, and doesn’t invest in them)
12. Not sure sorry I’m not a big reader
13. Research, get advice and be a risk taker, you will always learn something. The market is very high right now, wait 6 months, there’s an expected recession. In the meantime research where to buy and what to buy. Commuter rail lines are good investments for professionals, also high speed network areas - prices always go up here. Check your local authority for what license you need e.g. HMO license - selective, additional, mandatory. Good luck
That’s everything! I hope that’s okay
He was happy I’m so interested now and I’m happy I had the chance to sit down and talk to him and he really opened up about everything, so thank you.
He lectured me a little but honestly it was quite a bonding experience, he’s always so busy and feels like I don’t take this seriously or I don’t care, but I’m glad I talked to him tonight. He came from nothing, my grandad immigrated here and worked in a factory, supporting 5 children. As cliche as it sounds, he’s my hero...so thank you for making me sit down and speak to him
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Of course, if you have any other questions, feel free to ask me any time! And good luck 
