Can a £25k Salary and £60k Savings Get You a Rental Property at 23? Here's What I'd Tell My Younger Self

When I saw this question pop up in a landlord group, it took me straight back to my twenties. I remember staring at my own bank balance, daydreaming about buying a little flat and letting it out while I gallivanted around the globe. On paper, it felt so doable: a chunky deposit, a steady job, and a thirst for adventure. But the numbers—and the day-to-day reality of being a landlord—soon put that dream on ice. If you’re 23, earning £25,000, and sitting on £60,000 in savings, here’s the honest truth about what would actually happen if you tried to buy and rent out a place before you travel.

The Hard Numbers on a £25k Salary

Let’s start with the mortgage maths. Most high-street lenders will offer you around four to four-and-a-half times your annual income. On £25,000, that means a maximum mortgage of roughly £100,000 to £112,500. Add your £60,000 deposit, and your total buying budget sits between £160,000 and £172,500. In many parts of the country, that will barely cover the asking price of a one-bedroom flat, let alone a house. And that’s before you factor in stamp duty, legal fees, surveys, and the thousand other little costs that nibble away at your savings the moment you exchange contracts.

If you were targeting a property in the £200,000 to £350,000 range—even if you found the cheapest one on the street—you’d need a mortgage of £140,000 at minimum. That’s more than five-and-a-half times your salary, and no lender will touch that without a much bigger income or a second borrower. I have seen countless young buyers walk into a bank with a hopeful smile, only to walk out realising the cold, hard lending limit. It is not a reflection on your character; it is simply how risk-averse lending works.

The Real Cost of Renting It Out While Abroad

Now, suppose you scrape together every last penny, find a property at the absolute top of your budget, and convince a lender to say yes. The fantasy is that the rental income will cover the mortgage, the agent fees, and a little pocket money while you sip coconut water in Bali. The reality is messier. First, you will almost certainly be on a residential mortgage, not a buy-to-let product. Renting out a home on a residential mortgage without the lender’s permission can amount to mortgage fraud. I am not a lawyer and this is not legal advice, but I would never take that risk without switching to a proper buy-to-let mortgage—which comes with higher interest rates and a hefty arrangement fee.

Then come the monthly costs: letting agent management fees (typically 10% to 15% of the rent), landlord insurance, gas safety certificates, maintenance, and the inevitable void periods when your tenant leaves and the place sits empty. One broken boiler or a leaky roof can swallow several months’ worth of rental profit in a single afternoon. I managed a property for a young chap who tried exactly this while he was working in Australia. Six months in, the tenant stopped paying rent, and by the time we regained possession, the legal fees and lost income had wiped out his entire cash reserve. He had to borrow money from his parents just to keep the mortgage afloat.

Why Being an Absent Landlord Is a Gamble

When you are thousands of miles away, even the smallest problem becomes an ordeal. You cannot just pop round to unblock a sink or check why the boiler is making a funny noise. You are utterly dependent on your letting agent—and while many agents are excellent, they are not charity workers. Every call-out, every trade visit, every piece of correspondence is another line on your monthly statement. And if you ever need to evict a tenant, the process is slower, more expensive, and far more stressful when you are not in the same country.

Honestly, I would never recommend that a first-time landlord cut their teeth from abroad. It is hard enough learning the ropes of property management when you live around the corner; doing it from a hostel in Southeast Asia is a recipe for sleepless nights and a very empty bank account.

A Better Path: Rent, Save, and Buy When You Settle

If I could go back and give my twenty-three-year-old self some advice, it would be this: keep that £60,000 safe, focus on growing your salary, and rent for a few more years. There is nothing wrong with being a tenant while you build your career and enjoy your travels. When you come back and are ready to put down roots, you will have a bigger deposit, a higher income, and the luxury of choosing a home you actually want to live in—not just one that fits a stretched mortgage calculation.

Buying a property to let while you travel sounds romantic, but the numbers almost never add up, and the stress is real. Give yourself the breathing room to do it right later. Your future self will thank you.

Disclaimer: I am not a financial or legal advisor. This article reflects my personal experience and opinion and should not be taken as financial or legal advice. Always consult a qualified professional before making property or mortgage decisions.