Buy-to-let landlord, 22, who hopes to retire by 30 says there’s ‘no excuse’ for young people not owning their own homes
A 22-YEAR-old landlord says there's "no excuse" young people can't buy houses and he plans to semi-retire by the time he's 30.
Josh Parrott bought his first house for £115,000 when he was just 19, using money he saved up from two jobs he did between school lessons.
He then rented out the house while paying rent to his parents, saving enough to buy another one for £140,000, aged 21.
The savvy lad from Stockport, Greater Manchester, did a £20,000 revamp and saved money by doing most of the labour himself after work, increasing the value by £60,000.
He plans to move in soon and is already on the search for his third property.
Average property prices in the area are £272,226 according to Rightmove, with terrace homes going for £201,110.
The businessman plans to own ten properties - renting out nine - by the time he is 30, buying one a year so he can finally put his feet up and work when he fancies.
He was inspired after he did work experience at an estate agent as a child.
Josh said there is no reason young people can't afford to buy homes - but admits his mates said he was "boring" when he said no to drinks or buying new clothes.
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The trainee mortgage advisor said: "There's no reason people my age can't buy houses.
"You just have to get past the mindset that there are certain things you do at certain ages.
"You just need to make the most out of living at home: it's nothing like as expensive as renting privately or through an agency.
"I just didn't blow money on going out drinking and I spent almost nothing on clothes.
"My mates all said I was being boring.
";I was given a Ford Fiesta, which I kept, whereas a lot of my friends are buying expensive cars like Mercedes on finance schemes.
"I mean they're nice cars but I was able to put-away up to £1,200 a month by the time I went full-time."
Josh started working at an estate agents on a two-week work-experience placement when he finished his GCSEs in 2015, eventually working wo nights and a Saturday every week.
He also had a cleaning job at the locksmith company owned by his parents Glenn, 55, and Anne Millen, 53, while he did his A-levels.
He went full-time when he finished college in 2018, and banked most of his £14,000 a year salary, paying £120 a month to his parents, and £2,000 a year to run his car.
Pulling-in £30,000 a year in his job by 2020, Josh saved for his next house which he bought for £140,000 with a £15,000 deposit in Manchester in April.
He's done a £20,000 refurbishment on the home where he plans to live, cutting costs by doing as much of the work as he can himself.
Josh plans to build his portfolio of eight more properties using this model - buying properties that will increase in value, then using that profit as a deposit for the next house.
Josh, who left his job at the estate agent in May to work as a case handler for a mortgage broker, said: "So long as the houses I buy keep going up in value the plan will work well.
"There's always risk, but even if there's a massive crash or something I'll just have to keep going more slowly with savings.
"I'll slow down at 30, I can't retire completely then I'd be bored, but I'd like to get a sail-boat like my grandad and pop over to Italy for the odd six months.
"Or maybe I'll be a stay-at-home dad.
"I'll need to slow down because I can't just do a day's work, I always push to get more out of myself, and if I keep working like this I'll have the body of a 60-year-old by the time I'm 30.
Not possible for everyone
But it's not possible for everyone to pursue Josh's dream according to experts.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Drumming up a big enough deposit to buy one property, never mind several, is beyond many would-be first-time buyers.
"Most rely on financial assistance from the Bank of Mum and Dad, and also need to buy a property in a relatively cheap area, perhaps requiring work as well.
"Josh sounds as though he can do a lot of the labour himself which will save him a fortune."
Alex Winn, Mortgage expert team lead ad Habito, said that while it's certainly possible to buy homes for letting when you’re young, it all depends on your personal financial situation. "
He said: "We do have lenders who will consider first-time buyers for first-time lets, NatWest being one of them.
"Essentially you have extra checks to pass, as lenders will look at residential affordability, as well as rental affordability - which is the standard for buy-to-let applications. So it is a little harder when it’s your first ever home purchase, but it is possible.
There are also risks involved in borrowing large amounts to buy property and that there are additional costs involved in being a landlord.
Mr Harris added that it's "not for the faint-hearted" and anyone hoping to emulate Josh would be wise not to overstretch themselves.
"It may well be possible to take out multiple mortgages but you must make sure you meet the monthly mortgage payments or risk having the property repossessed.
"With many tax and regulatory changes, it is harder than ever to make money out of buy-to-let. But if you know what you are doing, seek advice and build your portfolio carefully then it may be possible but it will be a lot of hard work."
The minimum age for a first mortgage is generally 18 and for a rental property 21, though some lenders may say 25.
Income and credit history also affect how much a bank is willing to lend, among other things.
Once a landlord has more than four properties they will be deemed a professional says Mr Harris, which means requirements can be more onerous.
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"As a trainee mortgage adviser, Josh may know much but a qualified and experienced buy-to-let mortgage adviser will be able to understand and help facilitate the borrower's goals.
"Consulting with a tax adviser on how to structure the portfolio would also be advisable."
