{"id":6125,"date":"2022-02-08T13:12:44","date_gmt":"2022-02-08T13:12:44","guid":{"rendered":"https:\/\/www.citylets.co.uk\/blog\/?p=6125"},"modified":"2022-05-18T07:22:23","modified_gmt":"2022-05-18T07:22:23","slug":"how-much-money-do-i-need-to-get-started-in-property-investment","status":"publish","type":"post","link":"https:\/\/www.citylets.co.uk\/blog\/how-much-money-do-i-need-to-get-started-in-property-investment\/","title":{"rendered":"How Much Money Do I Need to Get Started in Property Investment?"},"content":{"rendered":"<p>More and more people are recognising the unique advantages of property investment, and Edinburgh and Scotland\u2019s Central Belt, in general, is a great place to invest in property thanks to steadily rising property prices.<\/p>\n<p>First off, we have to understand the different costs associated with purchasing a buy-to-let property:<\/p>\n<ul>\n<li>Cost of the property itself (typically a downpayment)<\/li>\n<li><a href=\"https:\/\/www.gov.scot\/policies\/taxes\/land-and-buildings-transaction-tax\/\" target=\"_blank\" rel=\"noopener noreferrer\">LBTT<\/a> (Land &amp; Buildings Transactions Tax)<\/li>\n<li>ADS (Additional Dwelling Supplement)<\/li>\n<li>Solicitor fees<\/li>\n<li>Furnishings (for furnished property)<\/li>\n<li>Cost of legally required certificates (e.g. EICR, HMO license)<\/li>\n<li>Cash buffer (recommended for emergencies)\n<p><div id=\"attachment_6128\" style=\"width: 1410px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.citylets.co.uk\/blog\/how-much-money-do-i-need-to-get-started-in-property-investment\/cox-co-team_resized\/\" rel=\"attachment wp-att-6128\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-6128\" class=\"size-full wp-image-6128\" src=\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized.jpg\" alt=\"\" width=\"1400\" height=\"980\" srcset=\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized.jpg 1600w, https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized-700x490.jpg 700w, https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized-1100x770.jpg 1100w, https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized-400x280.jpg 400w, https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized-768x538.jpg 768w, https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-team_resized-1536x1075.jpg 1536w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/a><p id=\"caption-attachment-6128\" class=\"wp-caption-text\">Cox &amp; Co team<\/p><\/div><\/li>\n<\/ul>\n<h4><strong>Buy-to-let mortgages<\/strong><\/h4>\n<p>When it comes to the cost of the property, most people choose to cover part of the price with a downpayment and the rest with a specialist buy-to-let mortgage.<\/p>\n<p>With buy-to-let mortgages, loan-to-value (LTV) ratios typically hover at around 75%, meaning you need a 25% deposit for the purchase. So if you were to buy a \u00a3110,000 one-bedroom flat, you\u2019d need a deposit of at least \u00a327,500.<\/p>\n<p>With an interest-only mortgage (rather than a repayment one) you can maximise your rental income and make back your initial investment faster.<\/p>\n<h4><strong>Other costs<\/strong><\/h4>\n<p>Solicitor fees associated with buying property typically range between \u00a31000-2000. LBTT applies for properties with a purchase price of over \u00a3145,000, and the fees start at 2%.<\/p>\n<p>ADS is an LBTT supplement on purchases of additional residential properties in Scotland (BTL properties, 2nd homes, holiday homes, etc). The ADS tax is 4 percent of the total purchase price (of properties valued at \u00a340,000 or more).<\/p>\n<p>There are also legally required certificates you need to get in order to prove your property is safe for your tenants, such as a gas safety certificate. I\u2019d recommend that you set aside a couple of hundred pounds for these.<a href=\"https:\/\/www.citylets.co.uk\/mobile\/\" target=\"_blank\" rel=\"attachment noopener wp-att-2791 noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2791\" src=\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2017\/05\/latest-apps.png\" alt=\"latest-apps\" width=\"618\" height=\"85\" srcset=\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2017\/05\/latest-apps.png 618w, https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2017\/05\/latest-apps-400x55.png 400w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\" \/><\/a><\/p>\n<p>Finally, you need to consider the cost of buying furniture for your buy-to-let property if you\u2019re opting for a fully or partly furnished property &#8211; this means you can charge a little more rent. Additionally, I\u2019d recommend having at least a couple of hundred pounds set aside in case of unforeseen maintenance issues.<\/p>\n<h4><strong>So how much do I need?<\/strong><\/h4>\n<p>The bottom line is that there\u2019s no one-size fits all answer, but if you want to <a href=\"https:\/\/coxandco.co\/property-investment-buy-sell-basics\/\" target=\"_blank\" rel=\"noopener\">get started in property investment in Scotland<\/a> right now, you\u2019ll likely need a minimum of about \u00a335,000.<\/p>\n<p>Of course, this figure will change depending on the size and exact location of your potential investment property, so your best bet is to talk to a property investment manager to get started.<\/p>\n<p>With property prices steadily increasing in <a href=\"https:\/\/www.citylets.co.uk\/flats-rent-edinburgh\/\" target=\"_blank\" rel=\"noopener noreferrer\">Edinburgh<\/a> and across central Scotland, now is the time to get started in property investment, whether you\u2019re looking for some extra passive income or simply to invest your money in a relatively stable, physical asset.<\/p>\n<p><a href=\"https:\/\/www.citylets.co.uk\/blog\/how-much-money-do-i-need-to-get-started-in-property-investment\/cox-co-in-association-2\/\" rel=\"attachment wp-att-6143\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6143\" src=\"https:\/\/www.citylets.co.uk\/blog\/wp-content\/uploads\/2022\/02\/Cox-Co-in-Association-1.jpg\" alt=\"\" width=\"170\" height=\"99\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>More and more people are recognising the unique advantages of property investment, and Edinburgh and Scotland\u2019s Central Belt, in general, is a great place to invest in property thanks to steadily rising property prices. First off, we have to understand the different costs associated with purchasing a buy-to-let property: Cost of the property itself (typically &#8230;<\/p>\n","protected":false},"author":1,"featured_media":5210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[748],"tags":[411,619,639],"class_list":["post-6125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-investment","tag-buy-to-let","tag-buy-to-let-mortgages","tag-cox-co","property-investment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>How Much Money Do I Need to Get Started in Property Investment? 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