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Build a Property Empire on a £30k Budget

Buy-to-Let Investors
Buying or Starting a business

Every empire has to start somewhere and it may surprise you to learn that there is no reason why you can’t start your property empire for just £30,000.  Most millionaires will tell you that making the first million is the hardest, but once you make your first, it will become much easier to make your second.  The same is true for building a Buy-To-Let property portfolio, one successful project will lead you to quickly starting the second.   The first step will always be the hardest, so what can you realistically do with a budget of £30,000?

Here are a four great ideas (all of which Liberate Funding can help you with):

Get Monthly Rental Income 

Does regular monthly income from property sound good to you?  If you want to quickly and easily start generating rental income, it is not a bad idea to purchase a property that is in a lettable condition and simply let it.  This strategy requires little to no experience, with many estate agents available to ensure you comply with all your legal obligations as a landlord/lady. It is even possible to purchase a property that is already tenanted, giving you day one positive cashflow.

Example £30k Scenario

In some of our great cities, for example Liverpool, £100,000 is a healthy budget. Purchasing a £100,000 property, with a 80% Loan-to-value (LTV) is possible with just a £20,000 deposit.  In this scenario we will choose to put down £25,000 in order achieve a cheaper interest rate on our mortage.  Our purchase will also incur stamp duty and professional fees, which will be paid for with our remaining budget. 

  • Outcome
    Ownership of a £100,000 property and associated rental income.
  • Indicative Cost of Finance
    As little as 1.6% interest per annum plus arrangement fees, if you have a good credit score and employment income over £25,000. Don’t despair if you would have a higher LTV (80%), no income or a bad credit we can still complete this transaction, just with a higher interest rate 2%+.   


Quickly create a monthly rental income into your bank account.  No experience is necessary and this model sits comfortably within our budget, achievable even on a smaller £25,000 budget. As a straight forward property transaction the cost of finance is cheap.


Capital growth is limited as you are unable to add significant value to the property through making improvements – to do any significant renovation work would violate your mortgage terms.  Without any fast capital growth, you will need to wait patiently to save a deposit again for your next property investment. The good news is saving will be made easier by our new monthly rental income.

Grow your Portfolio Rapidly with Deposit Recycling

Deposit recycling is a strategy that is widely talked about in the world of property.  With good reason, as executed correctly it is a game changer.  It will require time, energy and property renovation expertise, but the rewards are significant.  

A deposit recycler will buy their property as cheaply as possible, ideally under market value.  They will add value through improvements and then as the property is worth more than when they purchased it, they are able to take out a larger mortgage.  This method enables you to extract some of the value you have created without selling the property.  There is a dedicated financial product available to help you do this, it includes two valuations, one at the point of purchase and one when the works are complete. 

Using this method of finance you are able to purchase with a 75% LTV and then refinance down to a 80% LTV when the works are complete, which could be as little as four weeks later. Leaving you with a lettable property and a chunk of money towards a deposit  for your next project. 

This method requires research and careful budgeting. It relies on your skill to add as much value as possible, to a budget, in a short period of time. To make it work you need to buy a bargain that can be turned into a gem on a sensible budget. 

Example £30k Scenario

Property is purchased for £67,000.  The buyer has a 25% deposit of £17,000 , the remaining £13,000 of funds will be used for stamp duty, professional fees and refurbishment costs.  The refurbishment project will run for six weeks, and involves moving an internal wall, re-plaster of the whole house, paint, Kitchen and Bathroom update. This is a tight budget, but we plan to do a lot of the renovation work ourselves and have purchased the kitchen and bathroom materials on interest-free credit.  We have included these material costs in our financial model and plan to release enough funds at the end of the project to repay in full, well before the interest free period completes.
Once the refurbishment is finished, just six weeks later, the property is valued by the lender at £90,000 (34% more). The property is ready for a tenant to move in and the lender advances a mortgage of 80% LTV (£72,000 loan).  

  • Outcome
    Ownership of an £90,000 property and associated rental income, plus £15k+ of capital ready to put towards purchasing the next project, in just six weeks.  
  • Indicative cost of Finance
     0.5% per month during refurbishment period (could be 4 weeks or 12 months) plus arrangement fees,  followed by 3-4% interest per annum mortgage.

Fast capital growth enables you to move onto your next property investment much faster than option one; whilst also givng you a monthly positive cashflow.  Start gaining the experience that will help you to take on more and more ambitious projects. 


Fast capital growth requires you to do work to the property and refurbishment work wants careful management of the timeline and budget.  This strategy for the inexperienced could easily go wrong.

Achieve Fast Capital Gains with a Fix ‘n’ Flip

A property ‘flip’ is when a property is bought, renovated and sold within a short period.  A flipper is focused on making a quick capital gain, and not interested in the long-term cashflow from renting the property.  A quick win could be a good way to kick start your embryonic property empire, providing a larger deposit to play with on your next project.  

To maximise our small deposit, we will be looking at stretched senior debt, which does not attract the cheapest interest rates, but may allow us to do something that would not otherwise be possible.  Fix n Flip lenders will lend up to 70-80% of the purchase price and up to 100% of the renovation costs.  Lending is expensive, as the LTV is high and the renovation work significant. Unlike option two, Fix n Flip is designed for those who want to sell the property for a quick gain.

Example £35k Scenario

OK, so this option does blow the budget, but it is worth talking about, as it is not far out of reach. In this scenario we purchase a £100,000 property, with a 70% Loan-to-value using a £30,000 deposit.  Our remaining £5,000 budget is almost all used on stamp duty and professional fees.  We receive an advance of £10,000 for the renovation work from our lender.  We complete extensive renovation work within three months and sell the property for much more than we paid,  £140,000 .

  • Outcome
    We now have made more than £20,000 in profit after costs and move on to our next property project with a deposit closer to £50,000.
  • Cost of Finance
    1.25% per month for 70% LTV plus arrangement fees. This increases to 3% per month as the LTV is stretched to 80% when the money is drawn down for the renovation work. Interest is only charged on the funds you have drawn down for the time that you have them.

A large capital return would rapidly accelerate the growth of your property portfolio, enabling you to take on larger projects with better returns.  Transform an otherwise disused building into a home.


Short-term lending is rather expensive and as a renovation project rather than a property development project, this option has the highest cost of finance and it’s important that you ensure the expected capital gain will more than cover costs.

Become a Property Developer

Yes, for £30,000 it is possible to become a property developer!  Development loans work by releasing funds in tranches as work completes, based on reaching pre-agreed milestones.  You will receive some money from the lender to purchase the land and then as you hit each milestone more funds are released.  The property is then either sold or refinanced at the end of the project.

Example £30k Scenario

With a £19,000 deposit, plus stamp duty and professional fees you could for example purchase a £40,000 development site requiring £30,000 of development work. Lets say you expect it to be worth £100,000 when complete.
The £30,000 of development funds will be released by the lender in tranches after each inspection of the site to confirm the agreed work has been completed.  As work needs to be completed before the first tranche of funds are released, we have retained some of our original budget for the first tranche of works. We will want to find a builder who will align their milestone payments to those of the lender or you are a builder by trade and plan to complete the development work yourself.

  • Outcome
    Ownership of £100,000 worth of property, which can be either sold or held as a buy-to-let. 
  • Cost of finance
    Approx. 1-1.5% per month plus arrangement fees.   All development lenders prefer to lend to experienced property developers working on larger projects, so this is a higher interest rate than you might pay on your next project. However everyone has to start somewhere, and although there are fewer lenders interested in funding smaller entry-level development projects and rates tend to be higher, it is not impossible and the rewards of a successful development can be significant.

Make large capital gains through increasing the property value.  Once complete you can either sell or hold as a buy-to-let.   This option gives you the most valuable experience in property development which will put you in a good place to take on larger projects in future.


Requires knowledge of construction.  Without experience, there is an increased chance of cost overruns which could wipe-out your profit.

Each project is unique so when you are ready to talk about yours,  get in touch with Liberate Funding for expert advice and a detailed quote.

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