How To Invest £30,000 in Property | Samuel Leeds

Samuel always gets asked ‘Can I invest in UK property with just £30k?’

The answer to this is YES you can. There are many UK property investment opportunities available to you to buy rental property or properties in the UK today. Samuel has finally answered one of his most asked questions, read on to find out what he said.

If you had £30,000 to invest in property what would you do with it?

Samuel always says, “The best thing to invest in is yourself, the second best thing to invest in is property.”

Therefore the FIRST thing you should invest in is yourself. Your education is vital to your success in anything. Put at least 10% of your £30k into education, mentors, books etc. This is the best investment you can make in yourself.

What about property investment though?

Knowing what he knows now, the SECOND thing Samuel would invest his £30k in would be property, specifically a serviced accommodation (SA) property.

Serviced Accommodation Property

He explains that he would find an apartment in Birmingham that could be used as serviced accommodation to maximise the profits and subsequently give him the highest return on investment (ROI) for his money.

How to:

Step 1: Buy a £100,000 property such as a 1-bedroom apartment in the centre

Step 2: Obtain permission to rent it out as serviced accommodation

Step 3: Obtain permission in the lease to use it as a serviced accommodation property

The returns on this type of deal are incredible and can be up to 40% to 50%, which is insane!

As with anything, there is NO a magic answer as to what is the best thing to invest in but you must always invest in WHAT YOU KNOW.

In one of his meetings, Samuel asked Lord Alan Sugar a similar question, “If you had £100,000 what would you invest it in?” His advice was congruent with Samuel’s and he said you must always invest in WHAT YOU KNOW.

Therefore, if you know about HMOs and have learnt about them and researched them, then find the right property and invest in those types of deals.

The second type of property Samuel would invest in would be a House of Multiple Occupancy (HMO)

How to:

Step 1: Buy a £80k – £90k property such as a 4-bedroom house in cheap areas, such as Liverpool, Walsall or Bradford which are great for investment.

Step 2: Ensure the property is close to the city centre and there is high demand

Step 3: Ensure there is no Article 4 in the area, which could make it slightly harder for you to set up your HMO.

Samuel says “Your £30,000 will easily get swallowed up in this one deal because your deposit could be £20,000 but [you would have other costs such as your furniture] and if I only had £30,000 I would lease the furniture to save putting down too much money. Rent 4 rooms out and fetch rent of about £1,400 per month…you would have to pay expenses but could easily be left with a profit of £700 per month.” This is not a bad return considering that rents will go up and the value of the property will also increase over time.

Not many people have the knowledge that experienced property entrepreneurs like Samuel have so I bet you are wondering, how would you invest £30k if you didn’t know anything about the different strategies like serviced accommodation, HMOs and did not have any mentors to help and advise?

The THIRD thing Samuel would do if he were in this position would be to buy one or a couple of Single Let properties that would bring in some cash flow each month.

How to:

Step 1: Buy a property for £50k and rent out for £450 per month

You can buy a property like this in the UK and would need a small deposit of around £15k.

The benefit of this would be that you would be that you would at least be on the property ladder and earning some income through property at the very least. This income will inevitably help you in investing in more property, if you recycle the cash

Samuel’s advice

Whatever you do when you start with the £30,000 initial investment. Always make sure you assess the deal and work out what return on investment you are getting.

What’s the LAST thing you should do if you have £30,000?

Buy a house to live in. Samuel says “A house you live in is not an asset because the definition of an asset is something that puts money into your pocket every single month.”

Worse than this, would be blowing the money and not investing it.

Now ask yourself, if you had £30,000 or if you even have more in your bank account right now. What would you do?

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