Potiential first time rental buyer/investor


Happy new year all - this is my first post on the boards. I am currently a 18 year old student living in the UK. I’ve been trying to read into some real estate online the last few weeks and am keen to acquire as much knowledge whilst I continue studying (any book recommendations?)

The plan I have is I have £200k aside in cash and want to invest it in something that’s low risk; but yields an ok return. I’m currently looking at some flats/houses within my area the prices are around £100k-150k for a 1 bedroom flat and house prices are roughly £175k as there is some development for first time buyer houses nearby.

Is investing in property with this amount of money wise on my behalf? As I am hoping to rent out the property whilst I am at school (4 more years). I am sorry in advance for my lack of knowledge within this area.

All the advice and help will be greatly appreciated


You don’t need to actually use that money. It’s great that you have that much to invest but keep it in the bank and use OPM (other people’s money). Find a Hard Money Lender or Private Lender that will loan you the money and use it to your advantage and remember to buy right…make your when you buy not when you sell. Also DEFINITELY use the first time buyer’s programs in your area…that’s free money. You can also check for government grants and loans for real estate…they have some for first time buyers, rehabbing properties in certain ares and a million other uses related to real estate. Good luck and best wishes.


You should never use hard money for rentals. Paying high interest rates for rentals just won’t work for the vast majority of properties. Also, I would never use hard money for anything unless absolutely necessary. Most people with a lot of money in the bank can get a bank loan that will have a much lower interest rate, a longer term, and much lower points. Hard money is only for those with no money and bad credit. The rest of us can get the money much cheaper at the bank.

Good Luck,


xelkwonx is right you should not use any (or much ) of your money. The only thing that makes real estate any better than any other investment is leverage. If you buy $100k of stock and it goes up 10% the investment is now worth $110k and you made 10% on your money. If you buy a $100k house and only put down $10k and it goes up 10%. The investment is also now worth $110k but you have made 100% on your money. That is why real estate is worth the headaches. The less of your own money you put into the deal the more you make.