Should You Quit Your Job Now to Invest in Property

This is a common question for those with a side-hustle. Most don’t enjoy their full-time job and they feel like their permanent job is stealing focus and time off their growing start-up. So many try to justify quitting by telling themselves that their job is really the only thing holding them back from real success. But I strongly urge you to err on the side of caution here.

If you are looking at starting property investing where you will need to purchase properties with mortgages, quitting your job is definitely not the best way to go about it. For any mortgage or financial loan, the bank will be looking at your income. When you are self-employed, you generally tend to pay yourself very little in terms of salary in order to manage your tax amounts. This means that generally your income is not very high. And if you’ve only been self-employed for about three years most lenders won’t even consider you since you haven’t built up a sufficient track record yet. So quitting your job will have a huge impact on your lending.

If you’re doing Rent to Rent it’s a slightly different story since you don’t need to get a mortgage to do Rent to Rent. If you have a joint venture partner they’ll probably also not be too bothered about your employment as you’ve spent time building a relationship with them (which is another perk of private lending vs bank lending – private lending is much more flexible). But you will still need to consider the future. If you are planning on moving into property investing after about a year of doing Rent to Rent you’re going to get stuck at the lending without employment point again.

To learn more about all the pros and cons of quitting your job in order to do Rent to Rent full time, watch our short video here.