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Article > The Lifestyle that’s Possible with HMO Properties

 

Article kindly provided by

Paul Preston

www.TheHMOGuy.com


In a previous article we looked at an HMO case study - one of my first HMO’s that makes a clear profit (after all costs ) of over £1,000 per month. This month, I’d like to share some insights into the lifestyle that’s possible with HMO properties. On this subject, the first thing I’ll say is this: we are all different, we all want different things and we all have different measures and aspirations. What YOU personally want to achieve is individual to you.

The average salary in the UK is ‘around’ £24,000pa, so on the basis of £1,000pm profit per property, that’s just 2 HMO’s until you have the choice to never work again and the freedom to spend you time as you wish – based on the UK average salary - and just 1 HMO (£12,000 profit per year) is certainly a nice second income or pension. However, you may well be reading this and thinking, ‘well I’m not doing this just to get the average’ and that’s fine too. The point is this, work out the monthly cost of the lifestyle you desire, divide it by £1,000 and that’s show many HMO’s you need. (I invite you to take 5 minutes right now to work this out - write down what you goals look like work out the monthly cost).

With the many people I’ve worked with, when we’ve done this exercise live at some of my events, often there is a realisation that the lifestyle you desire is closer than you think! To keep the figures simple, work in ’chunks’ of £25,000. Working to round figures, every 2 HMO’s give an income of £25,000pa. So £50,000pa is 4 HMO’s, £75,000 is 6 HMO’s and £100,000 is 8, and so on.

 

I will make a point here that’s often neglected in the ‘more more more’ approach – in my experience, it’s not just about more money! It’s often just as much, if not more so, about more time, more freedom and more choice in life. Many people I work with don’t actually need any more money, they really want more of their time back…. maybe to see the world, maybe to spend more time with their children or family, maybe to contribute their time to a charity or within the community. We can always make more money, but we can never get back our time. When it’s gone, it’s gone, so I invite you to use it wisely.

Yes, HMO’s 100% can be the vehicle to help you achieve what you want in life, just remember to use them as such! Use the money, see the world, spend time with your kids, give some of the money away. Maybe use 1 HMO to simply fund charitable work or support good causes – a £1,000 donation can make quite a difference!

In summary, whatever it is you desire, take 5 minutes to write it down now, and be clear and specific. Take the monthly cost of that lifestyle and divide it by £1,000, and that’s mow many HMO’s you need. It’s probably closer than you think. If the UK salary is £24,000, then I’m sure most of us could live a very comfortable life on double that…. which is just 4 houses!

If you'd like to receive my latest FREE training videos (hints, tips, how to guides, HMO FAQ’s etc) as soon as they're ready, visit my website now and register your details: www.TheHMOGuy.com

 

Paul has written other articles about HMOs, check them out here -

HMO's What & Why

The Four HMO Market Sectors

HMO planning and Article 4

 

About Paul Preston, The HMO Guy.

As well as being a successful property investor and businessman, Paul is a normal, down to earth, regular guy who's simply learned about property, taken action and worked hard to become financially free. Paul has been investing in property for nearly 15 years, is a self-made millionaire twice over (which means he made it, lost it all, and made it back again), he’s an international speaker, author and serial entrepreneur, having had several successful businesses outside of property.


Paul is an expert on the subject creating exceptional wealth through property and his specialises in HMO’s and Multi-let properties for high cash flow, generating returns well in excess of £1,000 clear profit, per property, per month.

 

 
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