With home ownership remaining a distant dream for many people in the UK, the prospect of acquiring a second property to let out might at first glance seem impossible. Unsurprisingly, the most common obstacle to building a property portfolio is money or, more accurately, a lack of it.
But that is not necessarily something you need to worry about, as new research has found more than four in ten of the landlords in the UK right now earn a salary less than £25,000 a year, not including their rental income.
Far from being exclusive to the wealthy, investment properties are a realistic goal for many people who earn a modest wage and wish to top it up with money from their lettings activities. So even if you receive an average income or lower, do not give up on the idea of purchasing an additional property.
The research was conducted by Mortgages for Business and found some 41 per cent of the landlords questioned earn less than £25,000 from their full-time occupation. Such a statistic disproves the widely held belief that becoming a landlord is an option open only to those with vast sums in the bank and a well-paid job.
David Whittaker, Managing Director of the firm, suggested that expanding a property portfolio at the current time is potentially an extremely prudent move, as it will put you in a stronger position to deal with possible future rate increases.
Of course, not everyone becomes a landlord by being thrifty with their cash and saving for a buy-to-let mortgage. Some of you with a low-paid job could still inherit a property or struggle to sell your existing home, resulting in you becoming an accidental landlord.
You might also wish to downsize from your current home, freeing up funds to invest in an additional building.
Regardless of how much you earn, there are many routes that lead to lettings and you should not give up on the prospect of becoming a landlord any time soon. In fact, the situation is quite the opposite, as you may wish to identify which path is most realistic and prepare for it.
And once your dream of a property portfolio grows closer to becoming a reality, taking advice from Leaders – an agent with more than 30 years' experience – is a must.
For more information on building a property portfolio and becoming a landlord, click here.