How an immigrant with little money courageously became a landlord.
The journey to London
Growing up in a little town in Nigeria, I never thought I would end up in living in London. My destiny, it seemed, was already carved out long before. My father was an engineer who cared more about solving the problems of his beloved country than acquiring property and my mom, a civil servant with a zest for life.
On the other hand, my husband came from a family of property owners. His grandfather was a builders’ merchant and owned many properties, so he had caught the bug quite early on and always knew he wanted to be in the real estate business. He definitely had a willing accomplice in me.
Reckless or daring?
I moved to the UK in 1995 to study for a masters’ program and to join my husband. We soon adapted to our new surroundings and began to pursue our dreams. With both of us having had good jobs, it wasn’t difficult to start saving and we bought our first house in 1996, just after I finished my masters ‘program and started my first job. We were so proud of ourselves and it was such a great feeling to have a place of our own. I couldn’t believe how easy it was.
When I say easy, this is what I mean.
I come from a place where owning property requires a lot of money and resources. It takes a significant amount of capital to purchase land and build or buy a property as there is the lack of access to mortgages. This makes it difficult for the average person to own a home let alone finance rental properties,
To own your own home therefore is no mean feat and being able to buy a property in your 20’s simply because you had a good job was certainly an impossibility.
But, buying a house with a mortgage in the UK is generally quite straightforward. You only need a deposit of at least 5% of the property’s value, and you will also need to provide your proof of income, such as payslips or bank statements, to prove you can afford the mortgage payments as well as pass a credit check.
I am grateful I live in a country where mortgages are available to the “average Joe”
I was only 23 when I bought my first house with my husband. Many of my friends and acquaintances thought we were either crazy or reckless. Why take on such a huge debt at a young age they wondered? But we knew exactly what we wanted and understood the game. You either paid the bank or paid the landlord, either way you were paying someone. And whoever owned the house benefited from the growth of the property. This is genius!
The journey begins
Once we were settled in our first home, our sights were set on acquiring our first investment property.
Buying a rental property was a little bit trickier. You need about 25% of the purchase price. Whilst this was a lot more money, we figured with a little (okay a lot of) discipline, we could save up and we started putting the pennies together.
We had no kids and no other major responsibilities apart from our mortgage. It took another couple of years, and we bought our first rental property. A couple of years after, we managed to purchase our second rental property and we haven’t looked back since.
I am thankful for the discipline it took to save up for each purchase, and the knowledge we acquired along the way. We would not have been able to do this without taking the time to understand the process, investing in our education and taking calculated risks.
I am grateful I live in a country where mortgages are available to the “average Joe”.
Life is a lease and God is the landlord
You too can become a landlord
Becoming a landlord is a big decision, and it’s not right for everyone but if you’re interested then there’s nothing to stop you.
If you’re lucky enough to be young, start early, saving before you have responsibilities.
The key to investing in rental properties is to start small, understand the process, do your research and work hard to build a strong foundation. Real estate investing takes time, patience, and attention to detail, but it can be incredibly rewarding.
Take advantage of the fact that you live in a country where the average Joe can own a home.
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