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!
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