Buy to Let BASICS! | Property Investing for beginners | Buy to let uk
HTML-код
- Опубликовано: 21 июл 2024
- In Todays video you're going to know everything you need know about Buy to lets in the UK. Buy to lets are the foundation for any property investment strategy.
Do you know what you're looking for with buy to lets? I wanted to give you a breakdown of everything you need to consider when investing in buy to lets.
If you're just starting out with property investing and you're a total beginner then this video will answer your questions!
I've been investing in property for nearly 10 years and buytolets are part of my property investment strategy they should be part of yours.
Want to learn more about property and how to get into the property industry then make sure you subscribe to the Jamie York Channel to not miss the latest videos about property, entrepreneurship, and business.
Subscribe to the channel: / jamieyork
Join our Facebook group
/ propertywithdanandjamie
Follow me on Instagram: @jamieyorkaspire
Want to learn more about Buy-to-Let's, download my free guide here: bit.ly/jyboringvanillabtlguide
loved this, thank you. Very easy to understand and explained. Good luck
Glad you enjoyed it!
I've been binge-watching your videos lately but have not seen one about the refurb of a property, how to find trades how to set a budget, how to stay on budget, and where you source things to keep it cheap. do you have a video like this? or can you do one please
Will do
I've been bimbling through other videos and stumbled across this one and I have to say its the best I've seen, so thanks for the simple and easy to follow advice...I smashed the Sub button haha
Hi Jamie, im loving your channel. Youre a natural teacher. Clear and informative- thanks.
Guys this guy deserve more, We should help him to grow. He is better than many RUclipsr
All down to my videographer!
@@JamieYorklol, you’re funny Jamie!
Great video! I have to say you are the most genuine, straight shooter, no BS with a wide range of knowledge all around the properties world I've ever come across. You're brilliant. I have learnt alot by watching your videos. Thank you.
Thanks it's the best way to be! Can't be doing with these people that sugar coat everything! Glad the vids help you!
Love his voice when he says exarmple! Cute, nice voice and smart . He’s a keeper 😂
Haha, why thank you! 😂
Brilliant, lots of food for thought!
Glad you enjoyed it Brooke
Love the way you explain things and speak…so clear and engaging
Thanks for the feedback! Glad the video helped you!
Really helpful, learnt more from this one video than other RUclips channels. Thank you!
Ah thanks dude! Really glad you're getting value :)
Excellent vid and invaluable info. Keep them coming 👍
Thanks, will do!
Just found this video. Great content you've got me hooked and subscribed. Only the 1 btl at the moment but you may have just inspired me. Keep up the great videos. 👍
No worries Jim and thanks for the sub!
So glad i found your video.you speak compleat sence ,makes such a change on many education courses that make it all sound so easy
Thanks Jeremy! I like to think I'm straight talk because most of the things I talk about are not easy!
Really helpful video. About to dip my toes into property. Your channel has really helped me a lot. Cheers
I’d say pound door pound this is by the best video Of its kind. Brilliant!
Wow, thanks so much Richard! Really glad you think so! Out of interest, what were the bits you enjoyed most?
No worries mate, well it was all great but the way you explained the rental coverage and gave the break down examples of lending etc.. was fantastic. All the best Jamie.
Thanks so much! Hope you enjoy the rest of the videos just as much!
Thank you for your upfront honesty great for a newbie looking at getting in to property.
Glad it was helpful!
Shame all the calculations are totally wrong
So much value in your videos man!!
Best property educational video I’ve ever watched, well done mate
Thanks Alfie. Glad you got some value 😊
i've just today decided that I want my first buy to let, im only young and in my first good job so this has been a great base! Thank you!
You can do it!
hey girl me too!! i work as a lettings administrator and i can’t wait i just need to save for the next 10 years 😫😫
@@katelynoloughlin You've got this!! its going to be scary and hard work but the more knowledge the better
surely!
Bitcoin is the future, investing in it now will be the wisest thing to do especially with the current rise.
@@tomjack4546 yes yes the HUGE current rise, heard all of china is using it to buy Tesla's too
Brilliant explanation ! understood really well
Great to hear!
Great video - lots of useful information for UK property related investment. Many thanks 🙏
Glad you enjoyed it
Awesome video for beginners. Will keep watching your channel!
Thank you :)
Thank you for posting this information. Nice to see a UK relevant video on this subject too.
Glad it was helpful!
Invaluable info and so well explained!
🙏
Hi Jamie This was an Amazing video,
Keep it up & Thank You!
Just starting to research this so hopefully I can get my head around it all to start!
Nice! I hope this helps :)
Hi Jamie,
Great video! Do you have a video on what you need to start a limited company and the requirements for buying a B2L house on the company?
Yes I do!
Please could you do a video on re-financing and cash out?
I have a video about Interest only mortgage where I cover this!
BASIC for beginners. The Best video on the Block 😉👍
Glad to hear that!
Great vid. Thinking about getting into buy to let and this made it really clear to understand. Thanks a lot 👍🏼
Great to hear!
Great video, love that you give the free content instead of trying to get people to buy a course 👍🏼
Ah mate I have courses. I just like to give as much free value so people can give it a real go before investing in themselves. Time and place I think 😊
Just found this channel and subscribed.. How has this channel not got 100k subscribers! Professional videos. Keep them coming!
Thanks Liam! We’re trying to get there!
I have put in my tuppence worth ;-) and subscribed.
Hi mate, I’m more than happy with yours videos, carry on
Good to hear
Great video Jamie! New sub from me keep the knowledge coming can’t wait to hear more from you
Thanks for the sub!
Best property educational video so far for me, nice work Jamie.
Wow, thanks!
Buying just ONE rental property can make you a home owner, business owner, investor AND landlord/property owner in ONE move.
Get out of cash and into assets, it can be very lucrative…….
Indeed the real estates market is so lucrative and powerful because it only takes roughly $100k to control over millions of dollar assets
REITs are where it is at during these periods of uncertainty coupled with high inflation… My go to REIT is Realty Income followed by STAG and STOR for the longer term as well..
I agree with you, started in 2018 with a single condo with aid from a top expert. Currently retired from a 14 year IT career in 2020 at 36yo. Now have a 6fam, 3fam, duplex, 4 condos and 13 rental units. I’m cash flowing around $400k a year and creeping up to 3m in net worth as the assets appreciate and the liabilities shrink.It's crazy to see that rents and values have risen over time and truly do make you wealthy when you buy real estate and wait
Hi @@eddieparker4529 good stuff you’ve got going for yourself. Investing in property is something I have always wanted to do, I work hard and managed to save with hopes that I will be able to follow through. Came across your comment and if it’s not a problem, I’ll like to know the professional whom you work with. I could definitely use the help of one right now …… I look forward to your reply. Thank you and have a blessed day❤️
Well my assets are properly being managed by Mr Jack Ronald Joyce,
a licensed expert and he’s as well my RA, I’ve found his system to the be reason why I’m so profitable investing on the real estates markets. Over the years with his aid, I’ve gotten more familiar with the pros and cons of the market, he’s is always ready to listen to me and helping me achieve financial goals that I’ve set for myself, real good man👍🏻.
You can look him up online for more details!!…..
Great video Jamie. Subscribed. Thank you!
Awesome, thank you!
Nice one mate - thanks for not having sales pitch at the end. Clicking on your ads 😁
Haha, thanks mate. Yeah I never sell on this channel :)
Hey great video ! I got a question though why would I invest in property that returns me 5% a year if the S&P 500 index returns an average of 7%? Is there something I'm missing?
I'd aim for closer to 7% yield... 2 things on top 1) leverage and 2) capital growth. My property returns have consistently outperformed stocks. Just me though 😊
Really interesting video, Jamie. Nice to come across another fellow investor!
Awesome, thank you!
Hi James, thanks for the video - really interesting.
Cheers Ben! Glad you got value 😊
Amazing video Jamie! Extremely useful thank you.
New subbie here 😁
Great video Jamie! It’s good to go back to basics even when experienced in property investment👍
Absolutely!
Thanks Jamie. Been wanting to invest in BTL for a while and had struggled with getting my head around the fundamentals. Appreciate the breakdown. Will keep watching your videos and ask any questions I have :)
Glad it was helpful!
This information is very helpful. Thanks a million.
You're very welcome!
Excellent video and information !!
I love this video. So clear, no BS, straight to the point.
With respect, I disagree, as it seems like a bit of a shallow video to be honest. Please don't respond to me. 👍
Great explanation. I wish I would have had this info sooner. But glad I’m able to now learn what you’ve provided.
Fantastic content. Very engaging and easy to follow
Cheers mate!Glad you like the vids and they're helping you!
Great advice so happy I found you thanks
Awesome :)
I'm just getting started with real estate, so appreciate your information and experience a lot! Of course, I subscribed :)
Hero!
Nice vid. However, there are some other costs that shouldn’t be ignored which will impact the ROCE. Firstly there will be accountants fees, secondly you will have to set some money aside each year for maintenance and repairs to the property. Then there’s income tax. Yes it’s income so it will be taxable. Also, you may be paying an agency to manage your rental, like dealing with repairs. Some landlords don’t want to, or can’t deal with these matters because the properties they buy are not in the area where they live.
I’m not sure whether you’ve covered this in another video or whether you didn’t want to go too deep with it, but these other costs all serve to erode away your net profit. I’m assuming also that the ROCE is what you are actually left with when all these costs are taken off.
I’m no expert but I did some figures on this some time back and although it’s very workable it’s also not as easy as people think, simply because there are quite a few variables which can quickly diminish your profitability.
I've got a video with cost breakdown coming up this week!
I think buy to let doesn't work anymore for high income tax payer. There is just too much additional costs, stamp duty, maintenance, capital gain tax and income tax. Income tax if you are a higher rate earner really eats into your profit. I notice that you didn't mention it in most of your videos , imagine an earner of 100k plus or even 130k plus. Any rental income will be at least cut by half. You will probably end up breaking even or might need to contribute to the mortgage. I agree though that they do appreciate in general but over leverage will leave you prone to Liquidity risk if all of a sudden half of your properties don't get rent due to lack of tenants of even tenants failed to pay due to economic environments. I think it used to be profitable when you could offset your mortgage as expenses
@@usedopinions1858 investors in these circumstances would probably put the properties into a ltd co. But, realistically they would need to put 3 or more properties to make financial sense. The tax regime is certainly pushing investors away from residential property
Good call
Great video Jamie. Thanks 😊
Glad you enjoyed it!
Amazing video, everything explained so clearly. Thanks a lot!
Glad it was helpful!
Jamie, can you give us a video on the best places in the UK to buy to let property in your opinion? Thankssss
Great suggestion!
@@JamieYork you better exclude your favourites though !! Ha - nice clear video and presentation - thanks
Quick question if you’ve got the time mate, Im about to turn 19, got around 13 grand in the bank atm, got a apprenticeship going so my money is only going to go up when I qualify, average houses are around 300,000 to 350,000 for a three bed around me. Should I get on the buy to let screen with a 1bed 2bed or 3 bed?
As a buy to let, 3 beds are usually the best way to go and tenant will usually stay for longer! AND HIGHER RENTS!
It's crazy! I'm at the same stage as you🤣🤣 I was wondering the same damn thing
Cheers, very helpful and easy to follow 👍
So glad 🙂
Just want to say thanks. Currently doing my first b2l property an havent ever thought of the cap growth.
Think I just looked at the rent income Vs the mortgage amount
Cheers
It's the cherry on top!
Thanks for this, interesting and simple way of breaking down the main consideration points. My question is if you have the capital to invest in the property without BTL mortgage would that be preferable or split the available capital over multiple properties using OPM to build a portfolio? I am assuming the latter but the advantage of fully self financing the property is obviously that 100% of the rental income is profit (minus fees) vs paying costs (mortgage) and taking what’s left. This is probably a unique situation for most small investors but interested in your opinion...thanks!
Hey Gav, You can cashflow better with multiple properties with debt than one property paid in cash. Check out my interest only v capital repayment mortgages to understand what I mean
2020 was a great year for me despite the pandemic I've been trading with expert Mrs tessy service for months now and all my trade have been going well
Yes I' m also a living testimony of expert Mrs Tessy, My first investment with Mrs Tessy gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known
Mrs Tessy is obviously the best, I invested $3,000 and she made profit of $28,000 for me just in 15 days, Her success story is everywhere
Someone should please help me out how can I contact Mrs tessy
This is amazing!!!
No. YOU'RE AMAZING!!
The clips are very informative and helpful, thank you. How do you assess whether a property is BMV? You can look at comparables/sales history in the area, but the value of a property is also subjective, and often based on what someone is prepared to pay for it.
Superb knowledge bombs! Thanks a lot
Thanks Ian! Hope I got your sub 💪
Hi Jamie, amazing video, thank you for the help. I've got so many questions for you that it would be hard to list them here. Do you have an email address I could contact you on, as I could really do with some pointers, about to invest in a second BTL?
Hey Tom, DM on instagram to chat about property stuff. Make sure you put RUclips as the first thing you put so I know to respond to you
Amazing video mate. Came up in my recommendations n after watching it I subscribed. As 'generation rent' your video has given me the motivation to buy one day in the future. Hopefully your videos help me more. Wish you all the success in everything you do. TC n good luck. I can only see your channel growing.
Thanks umar! We’ve got loads more content for you
Epic, great video. Saved and subbed!
Awesome, thank you!
Absolutely great and very informative.
Glad you enjoyed it!
Hi Jamie - Great video for a complete beginner, thanks! I know you mentioned it briefly, but realistically how much money does one need to take the leap and buy property? And would you ever recommend buying property at auction?
It really does depend on the area to be honest, Jessica. Personally I'd suggest starting with a minimum of £40k to really get moving!
Auction - absolutely, but just remember that it will likely need to be purchased cash, under auction terms!
@@JamieYork Does that include the property deposit?
Hey Jamie, thanks so much for this video. I will be graduating this June and I start with a £85k salary contract in investment banking. I’ve got around £30k in savings. For how long would I need to work before I can get accepted for a mortgage roughy?
wow, £85k as a graduate job - wow that's amazing. Congrats
It’s normally about 6 months or the end of the probationary period. Then the bank seems the job as yours as well as you having 6 months worth of income for the broker/bank to work from.
you can get a mortgage with a contract (before starting)
Love your videos . I'm a new investor an learning
This video is fantastic! Thank you!
Ah thanks so much!
Very informative video Jamie.you make it look so simple. I already have an existing residential mortgage and would like to transfer to a BTL mortgage. What are some of the basics to consider?
Many thanks
How much equity you have in your property currently :)
@@JamieYorkEquity is at over £30K. Current balance on mortgage is at £89000. PP was £115000 but ladt valued it was at a £130000
Nice video mate! I have got a quick question. So, when you initially brought the house for £70,000 in the example, what was the LTV? Then,when you refinanced the property (which assumes there was already a mortgage), how much of the £90,000 was used used to pay off the old mortgage? After the old mortgage was paid off, I assume that would of released equity as the new 90k loan would be considerably more than the old mortgage?
Spot on my man. I always buy at 75% lion to value. So the 90k would replace the £52,500 from the initial purchase
Great Vid, the use of a visual example was very helpful! Glad i stumbled across your channel
Awesome, thank you!
Great explanation ! Thank you
You are welcome!
Woow amazing video, do you currently have a course?
Thanks so much Felipe! Really glad you've got some value! What's the best way to get in touch with you?
Way too simplistic. I was a buy to let investor for 20 years, and never got these sort of returns even starting back in 1979 when I got started. Firstly I frequently got stuck with bad debts, and getting non-paying tenants out can take months even before the current covid rules. I got one property where the tenant stripped out the copper piping on hi way out. I took him to court but guess what he had no assets so even winning the case I got nothing.
Then I got stuck with some property in Aberdeen during the 80's oil crash, wiping out 10 years of capital growth. I eventually got out with only my original investments.
Then theres the refurbishment costs, tenants do not look after your property well, and I would estimate it will need a complete refurbishment eery 5-10 years.
Back in my day we rented fully furnished, again after 5-10 years all the furniture would go into the skip.
Then theres the periods between tenants, and costs if you use agents.
You have missed out so many of the costs and pitfalls this could be misleading.
Hi John, it is sad to hear you've had some issues over your time. The title of the video shows it is just the basics and not a deep dive and I agree 100% there are loads of possible pitfalls and costs that I could of made a 9 hour video! :)
All I can talk about is my experience and my mistakes. I openly talk about my first property purchase in Burnley were the tenant stole my brand-new kitchen! However, I've learnt from my mistakes and I make sure I buy in the right area, at the right price and have the right checks in place to get the right tenants that I want. I still make mistakes to this day and I openly share these also!
Great video, please specify if in your example is capital repayment or interest only
With most BTL it would be interest only mortgages!
Thank you very much a great video explaining process really well. Any chance of advice on mortgages and protecting tenant issues.
Great suggestion!
Great video! Could you put together a video similar to this but with a repayment buy-to let mortgage? Technically wouldn't that be better for making capital gains? Also, any advice on whether its worth going to someone to source / manage the property.. especially if it is located far from you and you're a first time investor with less time to put towards this? Super new to this and hoping to buy my first investment property this year! Thank you for the informative content.
Hey A A, I did a video about Repayment Mortgages and Interest only here: ruclips.net/video/STy6mBnsBDc/видео.html This should cover why I don't go Repayment mortgages.
Yes you should look at getting someone to source your deals. Message me on Instagram @Jamieyorkaspire with "RUclips" and I'll tell you how I can help you find deals!
@@JamieYork sure, have messaged!
So glad this video popped up, definitely subscribing! We’re starting our BTL journey but have been told the house we put an offer on has a criminal injunction on it but it would be dropped once bought... bit skeptical of any future issues, anyone have experience with this?
Thanks mate! Really glad it gave you some value to take away from the channel and always good to have another subscriber join the family!
Who gave the injunction? I'd exchange subject to removal of injunction . Get a discount for the hassle, if it's a neighbour. Talk to them and explain you've exchanged and ask them to remove. Alternatively, ask your solicitor if you can get an indemnity against any future risk of the injunction not being removed. Hope that helps bud :)
Great video thank you very much for this knowledge 👍
Thank you,
Brilliant video. Thank you
Thanks Umar! Glad you're getting value from the channel
You said is that 30k in my bank? no. so if you sell the house for 120k, pay of a 90k mortgage, where does that 30k go?
Into your pocket! or into another property
@@JamieYork I don't follow, why I need to return 90K for the previous mortgage? wherein this pipeline I took a mortgage to purchase the first house? As you don't talk about purchase the first house with any mortgage I assume that you buy the first house in cash and then after then you bring the bank and extract 90K from the house, which means you have in yr hand 90K to buy Austin martin or to buy your second house - I dont understand to whom you return the 90K you just extract from yr cash purchased house?
The 90K is all yours, can you clearly ?
Try getting a non paying tenant evicted. Takes many months of unpaid rent.
Yeah, that's never fun and I'm hearing it happen more and more during these times... the government aren't helping massively unfortunately. I find it's best to get in communication with the tenants directly, understand their situation and offer to help them move on. The downsides of investment eh!
I have a rent protection insurance it costs £13 a month
Good video, works well until the music stops. Buy in point key as you point out. But government is swinging back in favour of tenants, cost of getting a bad tenant out are huge. And a high turnover of tenants means refurbishment costs on a regular basis. Or equally bad, vacant property.
Your model based on 5% interest is a great tip.
Liquidity and costs around selling are worth bearing in mind. It does though provide income on capital deployed, which is not easy in today's market. Gov Bonds less than 0.5%
Glad you enjoyed it!
Great video, learnt a lot!!
Glad it was helpful!
who decides what the market value is?
Overall, the market! Specifically a RICS surveyor on each property
Wish I watched this 7 years ago. I have a BTL repayment mortgage was my first mistake plus I have a full time job and didn’t want the stress of dealing with tenants etc. on reflection I could have and should have purchased more. All is not lost as I am about to buy my 2nd BTL. Wish me luck!
Nice and simple explanation 👍
Thank you so much 🙂
Great video pal 👍🏼👍🏼. Can I ask have you or are you planning on doing a video about the new "First home Scheme"? Thanks.
I really thought this guy has probably over million subscribers by the quality of the video😳
Cheers Heman!
Me too man i thought that 7k was 70k and even 70 is too low for this quality vidoes!
"I'm not saying this to impress you but to impress upon you"
There is no way to not sound a dick otherwise!
Very informative video, I love it.
Great video - subscribed !
Cheers James!
If you believe in the future then you will know that indeed Bitcoin is the future
For real it's very profitable
How does this whole bitcoin thing work, I'm interested in it and I'm willing and ready to invest heavily in it but I'm gonna need an assistant from any trusted and productive professional
I'm really interested in it but honestly I don't know how to go about it, I'm willing to learn it though
Sure it's wise to invest in BTC right now than it was months ago. But you have hold one simple rule "Buy low sell high" if you're in to make profits as an investor in Crypto currencies in general.
I think most people don't know valuable and important cryptos are especially bitcoin
Very good introduction for BTL property investment
Thanks Gary! I've got more coming up!
@@JamieYork hope I can learn more from your tube
Thank you - great vid
Glad you enjoyed it
Very informative and usefull video. Thanks a lot!
Glad it was helpful!
hey, i just subscribed in your RUclips channel and liked it. Great videos Thanks.
Awesome, thank you!