Step 4…. Numbers!

Ok, step four in our 10 steps to GBP10k per month from UK property.

So far we've talked about discipline, goals, and timeframes. Now, let's get into the fun stuff - finances. This is where it gets real, but by taking honest stock of your situation, you'll be able to figure out exactly what you can buy, and by when.

It’s pretty straightforward, building GBP10k per month starts with a single property. The sooner you can purchase the property, the sooner you can start earning and income, and the sooner that property will start going up in value, giving you options to re-mortgage or pull out equity for example.

But, how do you figure out when you can aim to have your first property?

Grab a pen and paper (no, really, grab a pen and paper) – and see below. Start by figuring out what you can save on a monthly basis. It looks a bit like this;

• Income: List your monthly income from all sources.
• Expenses: Track your monthly outgoings. The subscription services really add up… I did mine last month and it came to over GBP200.
• Savings: Calculate your "saveable income" (income minus expenses).
• Existing Savings: Assess your current financial ‘safety net’.
• Hidden Leaks: Analyse unnecessary subscriptions or recurring costs you can eliminate.

Remember, every saved pound brings you closer to your goals. So be disciplined here.

Project Your Growth:

• Future Income: Anticipate any potential income increases (promotions, raises, bonuses).
• Investment Growth: Consider the estimated rental income each property might generate (getting a bit more advanced here, more on this later).

This helps create a clearer timeline for your property journey.

Example Breakdown:

Imagine a ￡200,000 property requiring a 30% deposit and delivering a 6% yield:

• Deposit Needed: ￡60,000
• Current Savings (after safety net, 4 months’ salary): ￡27,000
• Monthly Savings ability: ￡2,500

Based on this, you could save the remaining ￡33,000 in 14 months, making your first purchase possible in just over a year.

What do your figures look like?

Visualise Your Progress:

With consistent saving and rental income, you could potentially acquire multiple properties over time. Our example could lead to 5 properties in 10 years, but remember, the income from those properties can further accelerate your journey.

We also have a podcast version of this step, check it out if you would like more detail - https://open.spotify.com/episode/1K17ztDwBW5sSGvGgKInnE?si=2bbca5aed3524e6c

Thanks

Callum