How to Invest in UK Property from Overseas | Samuel Leeds Coaching
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How to Invest in UK Property from Overseas | Samuel Leeds Coaching


Samuel: Hello, how’s it going guys? Chris: Good thank you, yourself? Samuel: Really good. So it’s Chris and Poppy,
right? Chris: It is, yeah. Samuel: Excellent. So I’ve seen your question,
you’ve said that you are living in Australia, have been doing for the last six years? Chris: Yeah. Samuel: You’re wanting to move back to England
and build a portfolio, so what do you want from me? Chris: At the moment we’re waiting for citizenship
here in Australia- Samuel: Yeah. Chris: … so that’s going to hopefully come
through by March of next year and then as soon as we get that we want to come back. Samuel: Okay. Chris: So I guess that the thing that we want
to know is, we really want to get started from here because by the time we get back
we want to … like ideally we want to be financially able to continue to carry on with
what we want to do. Samuel: Yeah. Chris: So not to start with, not to replace
income but just to be able to pay for everyday things if that makes sense. So we basically
want to know how we can get started from here. Samuel: Yeah sure. Chris: Without being on the ground being able
to look round places, that sort of thing. Samuel: Okay. So you’re wanting to invest?
Are you wanting to, sort of, build a traditional buy-to-let portfolio or are you wanting to
do sort of clever, creative things like lease options and stuff like that or are you literally
just wanting to put your money into an English portfolio so that when you come to England
you’ve got some cash flow coming in? Chris: No well we actually, we want to do
… like we followed all the things, the processes that you’ve done and that’s the sort of stuff
that we want to do. We want to go down that road. Poppy: To make sure we’ve got enough income
and the best return on our investment we can get really with what we’ve got. Samuel: Yeah. Why don’t you tell me your strategy
then, the thing that you’re thinking to do and then I’ll see if I can, you know, see
any problems with that or challenges of that. I mean, have you got any challenges? I mean,
what is it that you’re wanting to do, what’s your plan? Poppy: We’ve got a couple of options, we’ve
got £60,000 in a savings account in England at the moment and, obviously, with watching
all of your stuff and we’ve kind of realised that that’s not the way to go. And so we’re
either looking at investing that in … try spreading it out as much as possible but we’ve
also … my Mum has 1.8 in her property at the moment which she owns and she’s struggling
with cash flow at the moment. So we were thinking of potentially setting up a limited company
which would help us get a mortgage as well. And then her potentially financing some of
her property and whether that would be more beneficial using some of that money as well
as our 60,000 or whether we can just do it with that 60,000 cash that we’ve got. Samuel: Okay, that makes sense. So have you
currently got any properties at all? Do you own any houses in England or Australia? Chris: No we don’t. Samuel: Would you be able to get a mortgage?
If you wanted … say for instance you wanted to use that £60,000 to put down as a deposit
on a nice big HMO or something, would you be able to do that or do you not know? Chris: Yes we can, yeah. Poppy: Yeah, through Mum as a mortgage host,
yes. Samuel: Okay, so your Mum would be a mortgage
host? Poppy: Yes. Samuel: Oh that’s cool. Alright cool. So you’ve
got £60,000 that you’re ready to invest in England, you’ve also got a lot of equity that
your Mum’s got which you can potentially do as a joint venture so what’s your problem
then? What’s your challenge? Chris: Well I guess our big challenge is our
education and knowing where to start, what’s the … where do we … the strategy. So,
like, we want to do the course and stuff when we come back and we want to get a mentor and
we’ve been speaking to a number of people and watching YouTube clips and that sort of
stuff but we … yeah, we just … Poppy: We just can’t get back to England for
the course, for you course and we would just love a mentor so we don’t jump in and do the
wrong thing and then lose that, the savings. Samuel: Yeah, yeah. I mean you definitely
don’t want to invest into something stupid, you want to make sure that you invest it well.
I mean my thoughts would probably be you’re going to be coming back to England, you said
after March next year, right? Poppy: Yes. Samuel: Okay cool. So what I would probably
be thinking is it would make sense to try and invest that £60,000 really well into
something really profitable and then use that as, like, an earn the right proof type of
thing to then be able to prove to yourselves and also to prove to your Mum what you can
do. And then once you’ve done that, capitalise on the money that your Mum’s got and do the
same strategy that you did with the £60,000 if that makes sense? Poppy: Yeah. But would you suggest maybe a
sourcer? ‘Cause obviously we’re not in the country to come to the training. Samuel: Yeah. I probably would. I’d probably
say that … I mean you want to be clear on your strategy still but, I mean, I would probably
be looking with … if you’ve got £60,000 … does your Mum own any house in England? Poppy: Yeah, just that property. Samuel: Does she own buy-to-let property as
well? Chris: No. Samuel: So she just owns a residential? Poppy: Yes. Samuel: Okay, so you need to find out, if
your Mum’s happy to be a mortgage host for you that’s great, you want to find out what
type of mortgage your Mum can get because it might be that your Mum can get a mortgage
but she can’t get a HMO mortgage or she can’t, you know, there might be … there’s different
types of mortgages. But I think probably what I would be wanting to do, I understand that,
you know, you want to get mentored and all that kind of stuff but at the same time, if
you’re not going to be in the country for another sort of, you know, six, 12 months
potentially you want to … when you come to England, you said you wanted to be earning,
you know, 27k and then you want to push that up to 80k. So I would be thinking, if I was
you, I … I mean the money in the bank is, as you know, it’s shrinking. So just sat there
doing nothing, that’s not good. At the same time you don’t want to rush in and buy something
stupid. I would probably work with a really good trusted sourcer. I mean, you know, we’ve
got people on our books that we use to invest your £60,000 into a really good profitable
… maybe like a six bed HMO in a really good area- Poppy: Okay. Samuel: … that might give you a profit of
between 1000 and 2000 pounds per month. Poppy: Okay. Samuel: Something like that. And then once
you’ve got the money coming in and it’s all completed and it’s working, that might take
… that could take a few months because things in property do take a while, but while that’s
… when it’s all kicking in and it’s happening, then show your Mum what it’s done, “Hey Mum,
this is the property that I’ve bought, this is the strategy that we used” and then, you
know, raise some equity from what your Mum’s got and do it again. You find the properties,
you use your knowledge and your contacts but your Mum puts the money in and you can go
50/50 on the profits. How much equity would your Mum be prepared to work with you on? Poppy: She’s probably about a million. Samuel: A million. Okay, well with a million
pounds you can do some really serious damage. I mean we could be talking about doing development,
buying land, building properties from scratch and then re-financing them, pulling all our
money … all kinds of crazy stuff. I mean, which should be extremely profitable. What’s
your long term goal? What are you wanting to achieve through property? Poppy: I guess, Chris … we’re in the country
’cause he does geology so he works away on a mine site all the time and we never get
to see each other, so the ideal situation is that we can both live near our families
and stuff back in England and not be away from each other all the time. So we just would
really like to have money coming in every month, really, that we can still be together. Samuel: So do you need a certain level of
income before you come back to England? Poppy: Yes, ideally- Samuel: How much do you need? Poppy: Just for like, maybe 27 a year we’ve
kind of worked out to be minimum. Samuel: Okay. Chris: Yeah I think that’s what we’ve … salaries
aside, that’s what we’ve calculated will be living costs. Samuel: Yeah, sure. And if you came to England
would your only source of income be property or would you have another source at all? Chris: It would be our only source, that’s
why we kind of wanted to start now so that we hit the ground running when we get back. Samuel: Yeah, yeah, yeah. Chris: Is that doable? Samuel: Yeah, it’s very doable. I’m just thinking
it depends on your strategy. So to invest your 60 grand, I mean to make £27,000 cash
flow from the back of investing 60 grand, that’s going to be very tough going because
that’s almost 50% return on investment that you’d need. So, I mean, you could come to
England tomorrow and make 27 grand a month from scratch by just getting one rent-to-rent
deal or sourcing a deal a month and passing it on to somebody. So there’s lots and lots
of different things that you can do, I’m just thinking, with your situation, I’m trying
to think what the best strategy would be for you if that makes sense? Poppy: Yeah, definitely. Chris: Yeah. I mean the other thing is, like,
obviously we’re not going to need that money straight away as soon as we get back. That’s
just what we feel by the time that we settle in and get ourselves a house … like when
we move back we’re going to be probably living with family and stuff so it’s not going to
be like we need that money straight away. So it’s not going to be urgent urgent, but
that’s just what we’ve worked out we’ll need when we’re living as a couple sort of thing. Samuel: Yeah, yeah, yeah. I understand. And
that’s like, that’ll cover your basic costs to live a normal basic life and then obviously
you’ll just want to build on that, right? Poppy: Yeah, definitely. Samuel: Yeah, yeah, yeah. That makes … so
in that case you could do the strategy of that then, you could invest the 60 grand now,
get an income, I don’t think you’d be hitting 27k a year but it might be … it could be
maybe 20. And then you come to live in England and then you could, then, do a combination
of … I mean if you’ve paid … the cool thing is, if you’ve paid someone to source
you a property, you then not only get the property but you also get a lot of knowledge
as well from it. So by the time you come to England, you know, you’ve got the property
but you’ve also … you can duplicate that and do it again and again. Poppy: Yeah. But would you suggest buying
a house outright for like, 60, or would you suggest getting a mortgage on it? Like a big
HMO? Or, you know. Samuel: Well I think definitely the latter
because if you bought a house for cash for 60 grand the rent that you’re going to get
on that, even if you’re lucky, a 60 grand house they’re maybe going to give you 500,
550 pounds a month. And then you’re going to have to pay for someone to manage the property,
you’re going to be left with, you know, like three, four hundred pounds a month cash flow
which is only going to be … what, like five grand a year or something, tops. Whereas if
you invest, if you put that down as a deposit and get your Mum to be a mortgage host, you
could buy a big six bed HMO in the centre of Birmingham or something and then you could
make a 1,000 or 1,500 or even more profit each month as opposed to a few hundred pounds.
So, you know, you’re leveraging your money. Poppy: Yeah. And HMO or something like service
accommodation too. Samuel: I mean, yeah, serviced accommodation
could be … is very profitable. I mean, again, I think HMO for your first … I think for
your first investment HMO might be a little bit safer than serviced accommodation because
it’s a very, very tried and tested market and things. So I’d probably … with 60 grand
you’re going to have … not only could you buy a HMO you’re probably going to have money
left over as well because that … you know, you’re only really going to need like 40 grand
for a HMO. So you could do a HMO and then keep some money as cushion so that when you
come to England you’ve still got, like, maybe 15, 20 grand in the bank which you could then
use for rent-to-rent, you could use for educating yourself, you could use for paying more sourcer
fees. Samuel: I think if I was you, my plan would
be to invest £40,000 into a HMO and I’d pay a sourcer to do it. I’d leave maybe £15,000
in the bank, I’d come to England next year with 15 grand and then with that £15,000
you can then use that for whatever strategy tickles your fancy, you can use it to begin
to build a little rent-to-rent portfolio. Where abouts in England are you going to be? Poppy: In the North East, in Newcastle. Samuel: Newcastle, ah interesting. Newcastle’s
an awesome area. There’s some really good investment opportunities in Newcastle. I’d
probably to come to England, you may as well go full time in property because you’ve got
the time and you enjoy property, you’ve got one house giving you an income. Just go crazy,
go full time in property. Come to Newcastle, go networking, go to training programmes,
find some rent-to-rents in Newcastle, use that 15 grand to go crazy for a few months
just educating yourself and doing rent-to-rents and also to live off a little bit. And then,
three months after you’ve come to England, hopefully you’ll have a couple of rent-to-rent
deals, you’ll know the market, you’ll have educated yourself, you’ll have one nice big
HMO giving you a decent income. And at that point in time you’ll be in a position where
you’ve got a million pounds equity from your Mum that you can do some really cool stuff
with. I think that would be where I would be wanting to go. Poppy: Okay, that’s amazing. And so if we
went with a sourcer, with your company, would you … would we just go with whatever area
you would recommend- Samuel: No. Poppy: Or would we find someone in the North
East who’s- Samuel: Get someone … get the sourcer to
find something in Newcastle. Poppy: Okay. And do your company do that?
Like, would we be able to say Newcastle or- ? Samuel: Yeah, I mean better sourced, I would
recommend. I don’t personally get involved in the sourcing side of things but we’ve got
a company that will be able to sort that for you and find something in Newcastle no problem. Poppy: Oh amazing. Samuel: So the point of … the kind of action
points then for you guys is going to be, number one, find out what kind of mortgage your Mum
can get, can she get a HMO mortgage? So she needs to speak to a mortgage broker. Poppy: Okay. Samuel: Number two, you need to speak to a
sourcer who can get you a nice, big HMO in Newcastle. Poppy: Yeah, like a five bedroom kind of thing? Samuel: Yeah at least five, six, yeah, yeah,
totally. And then number three, get your ass to England and pull your sleeves up. Poppy: Yeah. Chris: We will do. Poppy: Amazing, yeah that sounds a great plan
doesn’t it? Samuel: Alright, is there anything else you
need from me right now? Chris: Thanks so much for your time. Poppy: Yeah. Samuel: You’re so welcome. Well listen, when
you come to Newcastle, drop us a message, let us know how it’s going and if we can help
in any way, we will. Poppy: Ah, thank you so much. Hopefully once
we get back we’ll come along to your crash course and- Samuel: You should do, you’ll love it. Poppy: Yeah. Samuel: Awesome, see you guys. Poppy: Thank you so much. Chris: Cheers. Samuel: Bye. Poppy: Thank you, bye.

11 Comments

  • Gareth Lavell

    Very exciting phone call, and lots of great advice. Samuel you are the man Blessings Gareth #FFChallenge #GarethLavell #PastorGarethLavell #GodsAmazingGrace

  • Pentru Barbati

    How about somebody that is not from UK doesn't live there or has residency and it's from Eastern Europe that want to buy property in UK ideal for short term airnbn type of thing i also have aroynd 50k at this point Regards

  • Paul Schurrer

    I’d love to get in touch with Chris and poppy as an in exactly same boat and even moving to Newcastle around same time! Would love to meet up with them. If Chris or poppy see this or anyone can point me in right direction it’d be much appreciated. Thanks

  • Zl Lim

    Hi, my friends and I have pooled together a sum of money and are looking at starting an investment holdings company to invest in UK properties. We are based in Singapore and may only be able to fly into UK occasionally for 1-2 weeks.

    Is our plan feasible?

    Are there any taxation or legislation we should be aware of? Is there any difference in mortgage requirements for foreigner/foreign investment holdings companies?

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