How much money do you need to invest in property?

For those looking for a reliable and lucrative way of building their finances and achieving financial freedom, investing in a buy-to-let property is one of the most popular investment strategies out there. You can generate returns through rental income and capital growth.

But before jumping straight into a property investment venture, every investor needs to work out their budget and establish what they’re willing to spend.

But how much money do you really need to be able to invest in property in the UK?

Property prices

The good news is, whether you have a budget of £50k or £350k, there are plenty of great investment opportunities out there to consider. But the budget you will need for your buy-to-let investment depends on the type of property you’re looking to purchase, and where it is located.  

Mortgage deposit

One of the benefits of purchasing a rental property is that you’re able to use a buy-to-let mortgage to help pay for itBut remember, if you’re looking to use a buy-to-let mortgage as an investment strategy, you need a minimum deposit of 25% of the full purchase price. 

What are the extra costs involved with UK property investment?

Aside from the purchase price, how much money do you need to invest in property in the UK when it comes to things like fees and taxes? Here are some of the most common additional costs involved:

Solicitor fees
You will need to work with a solicitor to assist you with contracts and other legal documents. Approx. £1,300 – £1,800

Survey fees
If you decide to get a survey done on the property, you’ll need to incorporate these costs into your budget. Approx. £450 – £1,000

Insurance
Many investors choose to take out insurance for their properties to cover any potential damage or loss of income. The most popular types of insurance you may need to consider are building and contents insurance, rental protection insurance, and liability insurance. You may also need to think about unoccupied property cover. Approx. £200 – £400

Stamp duty tax
While the stamp duty holiday allows investors to save significant amounts, which is useful for those on a budget, you still need to find out how much you need to pay in stamp duty before you invest. The additional rate of Stamp duty is currently 3% on the portion of the property up to £500,000, 5% on the next £125,000 (£6,250) and 8% on the remaining £250,000 (£20,000).

Property management costs
If you want a hands-off investment, you’ll need to hire a good property management company to take care of the property for you. Approx. 10-15% of your rental income.

How much do I need to invest in property in Leeds?

Leeds is considered one of the best cities in the UK for property investment. With high levels of demand from young professionals and high rental yields, investors are flocking to Leeds for their next buy-to-let venture. An average 2 bedroom freehold property currently costs about £125,000.  

What is the minimum amount required to buy in Leeds with Lifestyle Property People?

With an average 2-bedroom property currently costing approximately £125,000, you will require a cash investment of approximately £50,000. This includes the 25% deposit, the refurbishment cost and any necessary fees, e.g. legal, survey, lettings, mortgage, stamp duty and our service management fee. Click here to view an example deal.

For those looking for a reliable and lucrative way of building their finances and achieving financial freedom, investing in a buy-to-let property is one of the most popular investment strategies out there. You can generate returns through rental income and capital growth.

But before jumping straight into a property investment venture, every investor needs to work out their budget and establish what they’re willing to spend.

But how much money do you really need to be able to invest in property in the UK?

Property prices

The good news is, whether you have a budget of £50k or £350k, there are plenty of great investment opportunities out there to consider. But the budget you will need for your buy-to-let investment depends on the type of property you’re looking to purchase, and where it is located.

Mortgage deposit

One of the benefits of purchasing a rental property is that you’re able to use a buy-to-let mortgage to help pay for it. But remember, if you’re looking to use a buy-to-let mortgage as an investment strategy, you need a minimum deposit of 25% of the full purchase price.

What are the extra costs involved with UK property investment?

Aside from the purchase price, how much money do you need to invest in property in the UK when it comes to things like fees and taxes? Here are some of the most common additional costs involved:

Solicitor fees
You will need to work with a solicitor to assist you with contracts and other legal documents. Approx. £1,300 – £1,800

Survey fees
If you decide to get a survey done on the property, you’ll need to incorporate these costs into your budget. Approx. £450 – £1,000

Insurance
Many investors choose to take out insurance for their properties to cover any potential damage or loss of income. The most popular types of insurance you may need to consider are building and contents insurance, rental protection insurance, and liability insurance. You may also need to think about unoccupied property cover. Approx. £200 – £400

Stamp duty tax
While the stamp duty holiday allows investors to save significant amounts, which is useful for those on a budget, you still need to find out how much you need to pay in stamp duty before you invest. The additional rate of Stamp duty is currently 3% on the portion of the property up to £500,000, 5% on the next £125,000 (£6,250) and 8% on the remaining £250,000 (£20,000).

Property management costs
If you want a hands-off investment, you’ll need to hire a good property management company to take care of the property for you. Approx. 10-15% of your rental income.

How much do I need to invest in property in Leeds?

Leeds is considered one of the best cities in the UK for property investment. With high levels of demand from young professionals and high rental yields, investors are flocking to Leeds for their next buy-to-let venture. An average 2-bedroom freehold property currently costs about £125,000.

What is the minimum amount required to buy in Leeds with Lifestyle Property People?

With an average 2-bedroom property currently costing approximately £125,000, you will require a cash investment of approximately £50,000. This includes the 25% deposit, the refurbishment cost and any necessary fees, e.g. legal, survey, lettings, mortgage, stamp duty and our service management fee. Click here to view an example deal.

Want to start your property investment journey with us in Leeds?

Whether you’re a first-time purchaser or seasoned investor, our job is to make your life as easy and hassle-free as possible, so you can sit back and enjoy the great returns. If you want to know more, why not click the link below to schedule a call with us.

Want to start your property investment journey with us in Leeds?

Whether you’re a first-time purchaser or seasoned investor, our job is to make your life as easy and hassle-free as possible, so you can sit back and enjoy the great returns. If you want to know more, why not click the link below to schedule a call with us.