How to Invest With £20k / £30k / £40k

Once you get to £50k or over, our job becomes much easier as the majority of good buy to let properties can be purchased. However, under this mark we simply have to work harder.

Now we are not going to be simply using this webinar as an advertising feature where we present a property for each budget, this we can do if you want to take things further and speak to a broker. The point of this webinar is to give you other ideas that you may not have thought about.

One thing that you want to bear in mind is that for all of the strategies we set out below you want to make that initial deposit work as hard as possible. In an ideal world you invest, then extract that money back as quick as possible and then move on to property 2, then 3 and so on.


COVID Savings

Due to COVID, many clients who would not typically be investors, have found themselves with money to invest as they have not had to travel, pay for lunches, go on holiday or spend on entertainment.

This has led to the rise of the £20k investor. We have had more enquiries come in over the last 6 months with £20k in their pockets rather than any other figure.

Now before we jump straight in there are a few assumptions that we are going to make:

  • You are not restricting yourself to your local area
  • You know your long term strategy
  • We are not going to look at commercial/garages/planning etc however they are options
  • We will always advise as close to the city centre as possible
  • Do not worry about the look of the apartment
  • Size is irrelevant
  • Numbers are the be all and end all


Let’s start with £40k and work out what we would do with that.

flambard williams invest

Investing with 40k

With £40k, we typically would say that you can afford a £160k property as this is what the mortgage company will allow. Now we have plenty of options at that level for you but as I said previously, the point of this webinar is not to show you our portfolio but to give you ideas which you may not have thought of.

You are mainly focused on how to maximise your growth and income over the next 5-10 and pull back that initial deposit time and time again to reuse it for the next project.

1) Buy a larger property within your budget and add value

  • You do this by adding another bedroom for example.
  • Take a wall down to make the kitchen and the living room open plan.
  • Both of the above can not only increase the price of the property but it can also increase income you get in month on month.

2) Buy a property below market value

  • Now this may sound obvious but you are not going to find this on Rightmove or Zoopla. These are typically only achievable if you go direct to independent agencies as they will have properties where the seller may be a developer who has a number of units available and does not want the publicity so therefore you can only get directly with the agent.
  • If you have a £190k property which you pick up for £160k and the market is increasing 6% per year. After two years you will have £50,000 of equity in your property which you can pull out and re-invest for your second purchase and hopefully just repeat the process.

Once you achieve a BMV property you can then refinance this after 6 months or when your mortgage is up for renewal.

3) Let the property as serviced accommodation

  • This type of let typically brings in far more rental than a traditional let. Our research has shown that you only need to let your property for 33% of the year to get the same value as you would if you were letting traditionally all year round.
  • There are great tax benefits here but it has to meet certain criteria, 210 availability, 105 days let and not more than 30 consecutively to the same person
  • Potential capital allowances.


Over to £30k.

Investing with 30k

Of course all of the previous applies here but there are a few extra things we need to think about as our budget decreases.

1) Invest for the long term in a run down area

  • Whilst this would not be top of my list you would be surprised how much this can generate.
  • This is more of a longer term plan and not for the feint hearted.
  • Take areas such as Hackney, Brixton, Hoxton and Shorditch 20-30 years ago, if you held property there you would have had a huge increase in your investment. Take a look at the map below.



2) The further North you go the cheaper it becomes

  • Another strategy is keep heading North, whilst this is not as strong of a case as it was 5 years ago, the reality is that the North will give you far more bang for your buck than the South.
  • Take a look at secondary cities. Although these may not have the same pulling power from your perspective as the major cities there are still great investments to be had in these cities.


Now for the hardest one.

Investing with £20k

We know that typically this would not be achievable so needs a lot more work done from your perspective.

We would first want you to work out how much you can realistically save per month without putting yourself under financial pressure. Once you have this we can then move onto step one.

Again, we are going to assume that you have looked at the above options and we are down to the last two.

1) Buy something that is off plan for at least 2 years that only requires 10% down

  • This is a great strategy for someone who has limited resources now but has the ability to save over the 24 month period. Let’s take a property that is £160k. Typically for a buy to let you need 25% of this so £40k. If you only have £20k but can save £1,000 a month over 24 months whilst the project is being built then you can exchange on 10% now and pay the rest on completion.
  • So here, the key is that you want something that is going to take longer to build

2) Team up with another investor

  • As we mentioned previously, the majority of clients who have approached by a large number of clients who have around the £20k mark. This means that if we put these investors together then you can quickly get to where you need to be financially.
  • Two minds are better than one. With double the resources time wise you will have double the potential for research. Again team up with someone who can help you with the research side of things
  • Get to your end goal quicker


If you have any further questions please fill in your details below and we will be more than happy to help.


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