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The Property Podcast

ASK243: Should I go for quantity over quality? PLUS: Is renting to councils a good idea?

The Property Podcast

Rob Bence & Rob Dix

Education, Business News, Business, News, Investing

4.82K Ratings

🗓️ 7 July 2020

⏱️ 7 minutes

🧾️ Download transcript

Summary

It’s Tuesday and Rob & Rob are back again to answer more of your questions. First up we have a question from Lauren. She’s a 23 year old graduate who is looking to get into property investment for the first time. At the moment Lauren is fully educating herself before she gets stuck in - good shout, Lauren! Her aim is to achieve capital growth as the market recovers from the coronavirus, with the aim of her and her brother affording deposits for their first personal houses in seven years time. Lauren currently has £126,000 and location-wise she’s looking at Birmingham for the capital growth prospects. So now she has two questions that she needs a bit of guidance on.  Should she purchase two more expensive properties with around a £50,000 deposit each, or should she choose quantity over quality and go for cheaper properties? She’d also like to know if she should buy these properties in one place or spread them out across the country? So, is it better to have more properties in your portfolio or have less of them but of a higher, more expensive quality?  Next we have Tom from Stanford who has a rather interesting question.  He says that just south of him is Peterborough where there are some cheap properties, although they are situated in less than prime areas. He’s noticed that the local council are advertising to take on private properties for a fixed 3-5 year income.  So Tom is now wondering if this is a viable option to gain a guaranteed income for at least three years and a long-term tenant? Do Rob & Rob think this would be a good strategy to sub-let to the council? Tune in to find out.    Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply).  Or if you prefer, click here to leave a recording via your computer instead. The next question on Ask Rob & Rob could be yours.  Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:07.0

Welcome to Ask Rob and Rob. It wouldn't be a Tuesday if we weren't here, answering your property questions.

0:13.0

So that is exactly what we're going to do in a second for Lauren and Tom.

0:16.3

But first, we have to give you that quick recap of how you send your question in.

0:20.1

It remains very easy, and that's why we'll keep turning up each week because you lovely people keep giving us your questions

0:26.4

You can call in and leave us a voicemail via 013 808 triple 035 or you can go to our website property hub. net

0:36.0

forward slash ask and again just leave us a message and hopefully you'll hear

0:42.0

yourself on the podcast just like Lauren's about to.

0:45.0

Hi Robin Rob, my name's Lauren and I'm a 23 year old graduate who's looking to invest in property for the first time.

0:52.0

I just want to say thank you for all of the

0:53.8

podcasts they're super informative and I've also I'm currently reading the

0:59.1

Complete Guide to Property Investment by Rob D which is so instructive and has been amazing so thank you. So as I said

1:06.4

I'm looking to invest in property for the first time and my aim is to achieve

1:09.6

capital growth as the market recovers from the current coronavirus hit with the aim that my

1:15.0

brother and I can afford a deposit for our first houses hopefully in seven years time.

1:19.9

I have 126,000 pounds and I'm currently looking at Birmingham as I know it has good capital growth for my research.

1:27.0

My first question is, should I invest in two more expensive properties for this money, say with a 50,000-pound deposit for each, or should I prioritize

1:35.6

quantity over quality and buy maybe three or four less expensive properties?

1:41.1

My second question is, should I be looking to spread these purchase across various

1:45.2

areas other than just Birmingham and if so where would you recommend for capital growth?

1:49.7

Thanks.

1:50.7

Lauren thank you for the question. Sounds like you're in a really good position. So what should Thanks. thousand pound deposit for each. And on a podcast without knowing you can only give a very general steer. But I would say if you're investing in capital growth in Birmingham, then probably yes. Because very roughly speaking, a 50,000 pound deposit will get you to a purchase of 200,000 if you're using a 75% mortgage

...

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